New Britain herald., 1917-01-23

Steel, Anaconda, Marines, "the stocks which had profted by the war; Will lys-Overland, Reading and Union Pacific
 Mr. Whipple inquired what there was about United States steel that the public did mot know which would make it speculative. MT. Noble re- piled that it was not so long since United States Steel did not pay divi- dends.
 Everybody knew that, didn't they?" MT. Whipple asked. Yes" " Noble replied.
 They make statements, don't they?"
 Yes"
 Noble then explained that the doubt was about the profits the stock would make, opinion differing as to this.>
 On Trail of the "Shorts."
 Whipple then turned to the subject of short selling, asking Mr. Noble if he ever had known of preconcerted movements on the part of operators to drive down the market by accentu- ating unfavorable news that they might take short profits. T have heard of such things" Mr. Noble replied, "but I never knew of case of my own personal knowledge. have read about them in the news papers,
 "In all your years as a member of the governing board of the exchange you never believed that there was depression, due to a concerted move ment for short selling?" MT. Whipp1e asked.
 Mir. Noble did not appear to grasp the interrogation and MT. Whipple explained further.
 "I am merely asking you,'' he said, eff you have been nblivious to what has taken place."
 Again Noble replied that he had no personal knowledge of such a transac- tion as Whipple described.
 Whipple then asked if the govern ing body of the exchange ever had made an investigation to determine if there has been such short plots of the kind he described.
 Noble replied that there had been invitations to determine if it's mem bers had done illegal acts or made wash sales.
 NO flHfLu LII NJOIlUllldCAOH.
 "Would you and the men who stand for the best that there is on the eX- change approve the action Of men subscribing to large sums of money to be used in making short sales using unfavorable news and accentuatine that news to drive the market dowr and then buying in stock at a low fig ure in order to increase their prof1ts?' 2 Whipple asked.
 "Your questions seem to imply No ble- answered, "that there is some i'm propriety in men getting together ant selling on some news they think un favorable.''
 whipple worded his question a lit. tie differently.
 Noble again failed to give a direct answer, saying operators had the right to sell if they thought the sit uation warranted it. and the exchange could do nothing about it.
 q don't see how it could be pre. v,nted,'' added the witness.
 "I ask you whether it would be ir accord with the moral standards o1 the stock exchange" insisted Whip pie.
 1T can't see how it could be 5isap proved as long as it is a legitimate transaction"
 "As a basis of congressional action want your opinion. Would the bod! t of governors stop it if they could? ?"
 sI can't see any motive for stop pine people from buying and selling as long as they fulfill their con tracts.''
 "Then you see no immortality, n' questionable taste?"
 "I do not see any as you put it. :"
 Henry Insists On Answer
 Chairman Henry here interrupted and insisted upon witness giving a ca tegorical answer to the original ques ton which he directed the stenogra Iher to read again.
 "I can see no inpropriety,' MT Noble finally replied. The board of governors, said NO bic in reply to a question, was Willin: to produce the clearing house record ] showing the daily transactions on thu 1 exchange as reported by the broker 1 age houses, but in the matter of di l recting each firm to produce trans scripts of the accounts of their GUS ] toners, the witness said. he would i have to refer to the board of Sover nors.
 MT. Whipple said that the commit tee would recognize the period be tween December 1 0 and December 23 which would show the names of +h , customers, how their accounts stoo' day by day, whether they were lnn' 1 CT short and how much. He sait that if the board of governors failed ] to produce them. it would require tn | committee to make it's own searcl through the various offices for what i ] can and will get, who profited, wh' I lost and, perhaps how they did it.' Noble said he would put the matte | up to the board of governors this af 1 ternoon.