New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-17
Stock Exchange Members
Are Forbidden to Buy
News Tips
INQUIRY RESULTS
PLEASE WHIPPLE
SavsCommitteeH Has Shown
Who DivuIged Peace
Note Information

The employment of newspaper men
TO gather advance or confidential IN
formation for brokers was officially de-
rlsred taboo yesterday by the Stock
Exchange.
This action is the direct result OF the
disclosures made in the leak inquiry
that J. Fred Essary, of "The Baltimore
sun" and W. W. Price, of The Wash
inc Star" sent out from Washington
an the morning of December ~ 10
brokers in New York and Chicago con
Gdential tips regarding the President >
forthcoming peace note.
The inquiry also disclosed that har-
vey Fisk & Sons. which had taken up
tbc debts of William G.. McAdoo when
he became Secretary of the treasure,
employed in Washington neWspSPC,II
man. the representative OF Inc wa
Street Journal" 10 supply the hrm WIN
advance information. Pliny FISK VINO
described the relationship, lntlnateu
such a practice was fairy CohinV"
smong New York brokers.
Exchange Adopts Resolution
AT a meeting of the governing COM
rnittee of the Stock Exchange held yes
terday afternoon the following, resolu-
;ion on the subject was adopted:
Whereas, 1t appears from the pend
ing investigation by the CommltVeo
on Rules of the House OF Represenl-
atives that certain members OF the
New York Stock Exchange have en-
EMPLOYED newspaper Representatives
for the purpose of obtaining conn
Dental or privileged information
therefore be it
Resolved. That the direct or indi-
rect employment of representative
Of the press by a member of the New
York Stock Exchange or by his hrm
for the purpose of obtaining advance
or confidential information is an act
detrimental TO the interest or well
fare of the exchange.
The subcommittee. which remained
in New York to take charge OF the
documentary evidence demanded o.
brokers in the leak inquiry departed
for Washington yesterday. Sherman
+. Whipple, counsel to the committee
will ioin them there to-day. The names
of customers who traded in thousand
share lots with stock brokers in TINS
city between December 10 and 70 were
forwarded by special messenger TO the
committee in Washington yesterday
morning.
Whipple Pleased with Work
II seems hardly likely that the com
mittee will hold any more public hear,
ings. but this will not be determined
until the committee has had an oppor-
tunity to review the testimony already
taken and to comb thoroughly the bro
kers' statements. As to its accomplish
ment so far, Mr.. Whipple, who was seen
Yesterday at the Biltmore, summarized
it by saying that it had cleared the at
enosphere and demonstrated TO a nlcety
where the advance information concern
ing the Presidents peace note came from
and in a general way who profited by
it. He mentioned in this connection
the stock brokerage firm of +. r. HUT
ton & Co. and its customers.
Mr.. Whipple was asked whether the
committee would make any recon-
mendations regarding the testimony
given here by F. A. Connolly, of F. A.
Connolly & Co., Washington brokers,
whose partner until last Wednesday
was R. w. Boiling, brother-in-law Of
President Wilson. Connolly's asser-
ton that he was the author Of the leak
telegram has been fatty contradicteo
By more than one other witness and
Under such circumstances as to lead the
committee frankly to discredit Con-
nolly's version.
Mr.. Whipple replied that any ques-
ton Of fact which might arise would
be considered by the committee in OK
eeutiye session in Washington.