Arizona republican., 1917-01-31

 to railroad investments. Another, written by Hutton personally, said that Washington advices' were that increased freight rates probably would be granted the railroads.
 While describing the nervous state of the financial district shortly prior to the issuance of the presidents note, owing to the top-heavy spec ulative accounts amassed bv the "public,' Hutton gave the committee a shock by casually announcing that his firms outstanding loans against margined accounts aggregated $2S,- 000,0 900. This condition. he said, was general and was regarded by bankers as a dangerous over extension that might result in a panic. The bankers had begun to call loans, he said with the result that he had issued mo- tice that his firm would not do busi- ness except for cash or fifty per cent margin, according to the security.
 Hutton was preceded on the stand by Bernard Baruch, a large Wall Street operator who testified that sole ly by the use of foresight he had made $476,1 by selling shorts be- tween December 10 and December 23. Baruch again declared he had received no advance information on the presi- dents peace note.
 Every cent of his profit, he declared, was due ot his foresight in interpreting speeches by von -Hollweg and David Lloyd George as meaning peace was coming.
 Not a single transaction he made, he said, was influenced by advance infor- nation that the president was about to dispatch a peace note.
 He received no such information, he said and added that he had no secret sources of information Tn Washington on which he based any of his stock operations.
 AS proof of his assertion that he was unaware that a note was forth- coming from the president he was on the buying side of the market when news of it became public, he said. Neither he nor any other man would have been caught in such a position, he declared. if he had forseen the note.
 Baruch also pointed out that several errors he made on the market during the 13-day period of his profit taking. On several occasions he was forced to sell stock at a loss, he testified and finally, on the day before the presi- dents note was made public. he over looked the Dow-Jones ticker "TIp" which he had in his office, that a note was expected.
 "I covered that day" he said, and am sorry l did.'
 Testifying that during the leak per iod he had called up Secretary McAdoo, Baruch explained that he had done so at the instance of Col. F.. M. House, President Wilson's adviser, to suggest to the secretary a name to fill va cancy in the board of the federal bank of New York. He said that Col. House had called him by telephone and said:
 There is a vacancy in the federal reserve bank. I don't know anything about those fellows down there. Won't you suggest a man." Baruch said he did so. Go. House thought the name satisfactory and asked him to suggest it to Secretary McAdoo.
 As unexpectedly as Sherman Whip pie. counsel for the house Teak" in- vestgation committee. brought the name Of Ambassador von Bernstorff into his examination of the German afficiars friend, Archibald s. White, the New York financier, he suddenly closed his direct interrogation of White today after obtaining denials from him that he had received information from any German official regarding any of the recent peace movements Having established the close relations | between White and the ambassador yesterday and questioned the witness with von Bernstorff, Whipple today l drew an expectant audience to the | hearing room. Then, with rumors of possible revelations flying fast, Whip | pie asked White less than half dozen | questions and turned him over to the 1 committee for luther examination.
 Reading first from testimony pre- viously taken by the committee in | Washington, Whipple brought out that 1 details of the German government S peace proposals and President Wilson's s note were know in German official | headquarters here and in Washington | before they were made public and asked White if he received any advance 1 information about them through such | channels. White answered negatively MT. Campbell then took up the exam l ination and there tried to get White to admit that he had joined with Law | son in stock market operations based on the top heavy condition of the mar ket and the possibility of peace. Did Lawson suggest to you" asked 1 Campbell, that the market was top heavy and that a suggestion of peace would start the market down and that 1t was good time to get all your | friends into the pool?"
 No sir said White.
 Putting the question in many differ ent forms. Campbell tried to learn | specifically what White and Lawson talked about at their various meetings in New York at or prior to the time | the peace situation was a big factor | in the stock market. All White would say was that they talked in general terms about the war and it's economic effects"
 He said he could not recall ever having discussed various specific sub 1 jects, which the congressman suggest ed to him-the German peace proposals, the Lloyd George speech in reply, or the arrival of the Deutschland and the | U-53 or President Wilson's attitude" | You had advance information on the arrival of the U-53, didn't you?" asked Campbell.
 | 'I did not. l knew nothing of it until 1 saw it in the newspapers"
 Do you think Lawson should be in an insane asylum or behind the bars which,"
 q have no opinion on that. It is not within my Jurisdiction" replied the witness with a laugh.
 After it had been brought out that Whites concern, the Federal Chemical ! company, which, he said yesterday, he hal tried to get Lawson interested in manufactured products used in making munitions. he was excused and Barney