Daily capital journal. (Salem, Oregon) 1903-1919, 1917-01-30
His Profits Were $476.OOO
But He Might Have Made
Much More
HE RECEIVED NO STRAIGHT
TIP" AND LACKED NERVE
Efforts Being Made To Con-
meet Won BernstOrf with
Leak" Speculation
BY Carl D. Groat

y
New York, Jan. 30-Barnard Ba-
ruch, Wall Street plunger, cleared SAG,
600 playing peace lunches, during thir-
teen days in December, he told the
Leak-to- Wall-Street probcrs today
If he had known what was coming
from Washington, he said he would
have sold all day December 20, instead
of covering part of his short selling by
buying United States Steel and his
profits would have been larger.
On December 10 Baruch said he sold
2S, 400 shares of Steel short. On that
day Lloyd-George, speaking in com
mons, rejected the German chancellor s
peace terms, but left the door open for
further negotiations.
g went to it as tight and fast as /
could when | saw the word 'but on
the ticker he said.
The probers failed to open up any
lead which would reveal a leak through
German circles, but the big speculator
spilled more coIorfu Wall Street ro-
nance than all other witnesses com
bined.
Baruch grabbed the "'Mnch to sell
out of the air, he said, figuring that
once the peace question was opened ii
would hang over the market and bust
ness world as a bear factor for weeks.
He coolly told of hiring special
train to take him to Washington on De-
cember 6, in order to get there an hour
ahead of the regular schedule. He want
ed to be sure and be ON time for an en-
gagement at the office of the secretary
of war with the national defense adj
visory board council.
Baruch denied having any advance
information on the Wilson peace mes
sage and regretted it, Lacking such in
formation, he bought $4,000 shares the
day before the note was published,
when he should have sold, he said
"Was this large deal?'
"Well, I've done larger he said.
~ We been short this amount often.
Baruch denied any Communication
with Secretary Tumulty during the per-
iod under question.
To Implicate Bernstorff
Making an apparent effort to find
a possible note leak trail leading to
German Ambassador Won Bernstorff or
other ''German circles, the house in
vestigating committee today put Arch
ibald s. White, the ENJOYS friend, a
gain on the grill,
But the committee got only denials
and negation.
White, associate of. Bernstorff, Thorn
as W. Lawson and other diplomatic and
financial lights, denied having any adj
vance information from German quar-
ters or elsewhere, either on the kais-
crs peace move, by Chancellor Beth
mann Hollweg or on President Wilson S
subsequent note to the belligerents. Nor
had he traded during the leak period,
either for himself or for persons in Of
'ficial life in Washington, he said.
The first questions fired at White
bore on the German angle solely
Attorney Whipple quoted testimony
previously aired in Washington, suggest
ing that German diplomatic sources had
advance knowledge of the president s
note.
But White denied having shared in
such knowledge, or OF having operated
for any of his official friends.
Barney Baruch, spectacular operator,
was called as the next witness.
He denied having any special ar
rangements for getting news from
Washington other than the newspapers
and the ticker"
He laid on the table complete rec
ord of his dealings during the time un-
der investigation.
Tracing his dealings in United States
Steel from December on, Baruch
explained that he was 'long" of Steel,
five thousand shares, December II and
that he sold out the next day at loss.
Most everything | had that day |
sold out at a loss, Baruch volunteer
ed. adding that he had rubber and cop
per stocks. He sold 23 400 shares of
Steel short next day on the strength
of Bethmann- Hollweg's speech, he said.
| realized that the people S minds,
which heretofore had been on war,
would now turn to peace, he cOntin-
ued. "I commenced to think what that
would mean in business and finance.
And / thought it all over and decided
n man should sell. did sell as soon as
/ could, and had TO get out Of some
other stocks first.
From the standpoint Of prices,
peace was bound to raise the mischief
with the market. The market was in
a bad technical position at the time
from high prices, business interest rates