New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-31

was going to be announced that woua"
break the market. what would you nave
done ?" Mr.. Whipple asked HIM. -,
"A man who had known that woulu
have sold all day long. ! would never
have stopped from 10 to 3. -,
An interesting feature or MT. barucn
testimony was the attempt on his part
which he described. to reach FeiiN NJ.
Warburg and Secretary McAdoo 9y
telephone in Washington during the
period under investigation.
Colonel f. Nj. House had told nm,
he said, of q vacancy on the Federal
Reserve Board and asked him TO recon-
mend some one 10 Secretary McAdoo
10 ill it. He agreed to do this, out
first he tried 60 get Mr.. WarourS'
though why, he did lot explain.
But on falling to reach Mr.. Warburg
he tried the Secretary Of the Treasury
Neither responded until later, when ne
talked with both at some length on the
subject of an appointm INT to the va
cancy. he said. He acknowledged a
SLIGHT acquaintance with Count Won
Bernstorff. but described it as nothing
serious -.
Archibald s. white. whose acquaint-
ance with the German Ambassador Is
a much more serious affair, sociaiiy'
as he has testified, preceded Mr;
Baruch on the stand, beng reeaileu
from the day before. -.
"You had advance Information aoous
the arrival of the U-53. didn't YOU
Representative Campbell asked MN.
81 did not, sir. knew nothing OF
il until | saw il in the newspapers
replied White. .w
Didn't you realize when you saw
Lawson's testimony published tnat
there might he an issue OF per2uIy
raised between you and HIM HOW
was it that you made no effort 10 nave
him retract? ?" At.h
81 didn't think the manner in whlcn
he mentioned my name very impo'-
tant."
Hutton Explains Private wires
In IN. afternoon Mr.. Whipple had
Mr.. Hutton explain the operations OF
"private wire" house like r. f. huVloi,
& Co. The broker said his nrm ieaseu
wires from the Western Union LOT ls
exclusive use, from which spurs oI
loops were run into the ofhces OF COZ
respondents en- route. For example; lhe
firm leases a wir' between New 10TH
and San Francisco, where u mas
branch office. Spurs from TINS wire
reach its correspondents IN Chlcago'
Denver. Salt Lake City and cheyenne.
His firm has in all forty-hVe core
spondents. comprising other brokerage
firms in the different cities Throughout
the South and West, and two oraneh
Offices, one in San Francisco ana one ~
Los Angeles. From these out-of-to
sources comes 20 per cent OF us ousl-
ness, and from them also, the Dfoher
explained under the lnsistent lnterro-
CATION Of the committees counsel, come
practically all of its tips on news az
fecting the market which dlo not oIlSl-
nate in New York.
II was brought out then that f. A.
Connolly & Co, of which I. w. Boiling,
brother of Mrs. Woodrow Wilson, is a
member. was the Hutton firms WASH,
ington correspondent. Connolly mad
proposed the connection, the witness
said. while still employed by j. l.. Ed
wards & Co. in Washington.
Connolly Counted on Boiling
He told Hutton that he could get
$4,000 and start a firm OF ms own
with Boiling as a partner and STOCK
Exchange member. Mr.. Hutton TOOK
uD with the proposition, he explained,
because he thought the business re,
sulting would be attractive and he mad
found it so. 1T
Did Mr. Connolly discuss with
YOU at all the advantage and dlssd-
yantages Of having Mr.. Boiling as
member" A.-No, he did not.
Odd you know that Boiling had
a relationship TO important parsonage
in Washington? Al knew that
Boiling was q brother-in-law Of the
President. Connolly told me.
Didn't he explain 20 you that
Boiling would be able to bring you
high class business? A.-No, sir.
Ole merely made passing mention .
Of his relationship TO the President Z
A.-Yes. sincerely passing mention
The witness was asked and aged 10
furnish 70 the committee when ne nsd
been able to refresh his memory tne
date Of his first talk with Conhoiiy
about the formation Of the Connoliy
firm, the date of its formation and the
date on which Boiling bought his sea, sea-
on the New York Stock Exchange. ms
seat was bought, Mr.. Hutton had tesu-
fed, three or four months ago.
MIR. Whipple asked him what nc
Thought caused the break in the mar
ket which seemed to anticipate the
news of the peace note. NJ,
81 think they (thc brokers IN wal
StroetO were borrowing so much money
thev we're scared TO death" replied
Nv. Hutton. He startled the commit
tee bv saving that his firm on Deem
her % had borrowed close to S2S,0OO,'
I 600. whereas bt fore the war $4,000
COO had been a maximum borrowing
Mr.. Hutton said that in the latter
part Of November he thought his firm
was getting too extended. Difficulty
was being experienced by his firm nc
said. in arranging loans with bankers.
"The feeling was that if anything
happened we should have a panic" ne
/ said. 49,;
s'From how many banks did you ge'
such views7" asked Whipple.
'It was universal"
Mr.. Hutton used the term that "th,
public was too much in the market.
| He was asked to explain this term. h'
replied that the term generally wa