South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-01-23


sensational hearing. The room was
only partly filled.
The first questions dealt entirely
with the technical side of the great
business, q subject which Mr.. Noble
handled in crisp, business-like man
ner
The stock exchange. he said. was
made up Of approximately 100
members. embracing perhaps 500
brokerage houses. The membership.
he said, was limited, and il was only
possible To obtain a seat by pur-
chase from some one who was al
ready a members. Even then, he
said. IL was possible 10 exclude a
man by blackballing him.
Not For Making Profit.
Am 1 right in supposing that the
stock exchange is not an institution
for the making of profits and the
declaring of dividends" asked
Whipple.
You are" returned Noble. 1T
is not a profit-making nor dividend
declaring institution. 1t is a place
where the members meet TO transact
business"
No one. he continued. was per
mitted on the floor of the exchange
except members and their en-
ployes.
The expenses of conducting the
exchange, Noble said, were met by
dues from members and by rental
of telephone and telegraph booth.
Whipple then asked Noble TO de-
scribe in his own language the bust
ness of the exchange.
There were a string of posts on
the floor. Noble began, around which
the brokers congregated for trad
ing purposes. The sales were made
verbally and by use of slips contain
ing the names of the purchaser and
seller. No record of these transac-
tons is kept by the exchange itself.
1t is the business of telegraph op-
orators, he said, to record these
transactions The only record is
kept by the clearing house.
Between so and 80 percent Of the
sales of stocks and securities Noble
believed. passed eventually through
the clearing house. There were
many small transactions not record
ed.
Governors Board Control
The board Of governors OF the
stock exchange had absolute and
arbitrary control Of the institution.
1t has the power Pres't Noble said
to deal with all question involving
the morality of transactions.
Does the exchange prohibit it's
members from specializing on the
floor?" asked Whipple.
mo sir" Noble replied
Does it condone or frown upon
these practices?"
1T neither condones nor con-
dennis them"
Whipple then launched into a
more technical phase of the ex-
change business dealing particularly
with the manner of listing stocks
and securities. Pres't Noble called
one of his lieutenants to his side 70
supply minor details.
The business of the excha age, he
outlined. was confined solely TO
stocks which were listed.
Does not the business deal prin-
cipally with speculative issues p"
asked the lawer.
Stocks Chiefly Speculative.
THE business of the exchange
deals principally with stocks that
are speculative in their nature" he
answered.
whipple asked to definite the
difference between a Spectator
and an investor"
We'll, I'm not an authority on the
subject" returned the witness as the
spectators Uttered, but l should
say that a speculator was a man
who bought a security with the
hope of selling for a profit, while an
investor buys with the hope of get
ting a dividend return"
The first sign of a clash between
questioner and the witness came
when Whipple asked if it were not
possible for these speculative stocks
Ito be manipulated"
II don't know what you mean"
returned Noble, quietly.
Well" pressed Whipple. isn't
IL possible for a manipulative move
ment on these speculative issues to
take place."
Didn't Get Meaning.
Il really don't get your meaning.
I am afraid" answered Noble again.
In vain did the Boston lawyer at
tempt TO pin the stock exchange
head down 20 a definite statement on
manipulation" Each time he was
met with an equivocel answer.
Very we'll" said Whipple. we
will leave this matter for the pres
ent. But I think the committee will
be interested in this phase of the
situation a little later. Please give
this matter your serious thought.
for We shall return 20 it."
Yes sir. said Noble.