Grand Forks herald., 1917-01-23
PRESIDENT NOBLE OF
EXCHANGE CALLED TO
GIVE SALES DETAILS
Says it is Not Improper to
Sell "Short" on Un-
favorable News.
HEARING IS TAKEN
UP IN NEW YORK
All Deals Between Decern-
Der 10 and % to be
Looked Into.

New York, Jan. 23.-Searchlights
of the house rules committee In the
leak" inquiry are to be turned I'm.
on all the short" deals
which took place on the stock ex.
change between December 10 to Dee
csmber %. 1t was on such specula-
tions. If any, that profits were made
on advance Information regarding
the presidents recent peace note. it
is averred.
That this feature Of the inquiry
its first session today. ordered H. G.
S. Noble. president Of the stock ex.
change, to request" the governing
board Of the exchange to ask its mem-
bers to supply the committee forth-
with with a list Of all their transac.
tions between December 10 and De.
cember 23, designating all customers
by their real name and not by nums
bers or appellations.
The statements requested also are
to show the numbers of stock bor-
rowed, by whom and to whom loaned
and the date returned.
With this Information in hand, the
committee believes 1t soon can deter.
mine II there is any basis to the
charges of immense profit taking
through short" selling by those in
possession Of leak" information.
Noble, the first witness, was ques-
toned particularly to the operations
of short" pools and the propriety
of spectators accentuating unfavor-
able news by selling stocks in order
to depress the price and cover" at
a profit.
.4- He said he saw no impropriety in
such operations. He was told that IL
the boards OF governors dtd rot OBJ
tain the records desired the commits
tee would be compelled to make its
own search. Noble agreed to place
the matter before the governors this
afternoon.
Samuel +. Streit. chairman Of the
stock exchange clearing house. the
second witness, explained it's opera
tions.
New York. Jan. 23.-The leak" in
was resumed by the house
rules committee at the customs house
here today with II. G. s. Noble, presi-
dent of the New York Stock exchange,
as the first witness.
Mr.. Noble was called, as explained
by Sherman l.. Whipple, counsel for
the committee. to detail the workings
Of the stock exchange and to aid in
rules Of engineering deals for large
profits"
Whipple made it plain that extrane-
Gus matters. such as general Inves-
tigation Of the stock exchange, will
have no place in the inquiry at pres
ent.
The investigation. according to
Whipple. outlined will seek to de-
termine first Of all three things:
What were the activities on the ex-
change during the week Of December
1S when the leak" Is said to have oc-
and the possibilities for caus-
ing losses?
Who are the brokers responsible for
the transactions during this period?
Who made the profits?
The second inquiry, Whipple said.
should extend both to profits and loss.
es.
After that" he said, "the commits
tee may feel that 1t is in a position
where it may intelligently inquire
about those who profited and It seems
likely that those who profited may be
those who obtained advance informa.
ton"
Mr.. Noble frst was asked to do.
scribe for the benefit Of the commit
tee the organization Of the steel ex-
change. the personnel Of It's manage.
ment and its rules and regulations.
Market Activities.
Mr.. Noble. described 'the activities
OF the market on the floor Of the exc
change on sample day."
Ihe exchange itself. he said, made
they occurred. this being done by the
exchange ticker. The stock exchange
house, however, did receive
each day from each brokerage house
statement Of It's purchases and sales,
explained tho witness
The stock exchange has absolute
knowledge OF what occurs on the
the committee. Noble said.
The board Of governors. he said.
enforced penalties for the violation Of
Its members of the standard of "com.
.ercial morality and personal hon
Or"
Mr.. Whipple questioned the witness
as to the difference becween specula-
tive and investment security and ask.
90 II 1t was not true that the specula.
ty for manipulated movements
Inc witness said he did not under
stand precisely what was meant by
manipulated movements"
he said that buying naturally put
The price of a stock UP, as selling put
It down. Mr.. Whipple said he WouiS
not press the subject now, ana advis.
% p MT; Noble to give "prayerfnl
lion.
The witness furnished the commit
lee with . list OF what he regardSd q
Ipeculattve stock-United etatea
Steel. Anaconda. Marines, the indus-
trial stocks which had proftted by
The var" Willys-Overland, Readin1
Ind Union Pacific. A 4, B, 4 80 ~
''short' seuise.