New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-24
STOCK EXCHANGE
HEADS SURRENDER
Continued from page I

appears 10 render their examination
IN each case material.
The resolution of the governing
committee on the subject reads:
Resolved. that the governing com
mittee request the members OF the
exchange TO furnish forthwith to the
chairman Of the committee on clear
ing house the following statement
for each day from the 10th TO the 23d
of December, 1916, inclusive.
First-Of what clearing house
stocks each customer was long; OF
what clearing house stocks he was
short al the end Of the day, giving
the name Of the customer, the stocks
& snd the number Of shares each.
Second-What clearing house
stocks were borrowed, when and from
whom borrowed. and when returned
Mr.. Noble was "a witness both IN the
morning and Just after luncheon, when
he requested permission to correct
some previous testimony. In the morn
ing Mr.. Whipple had asked him if he
had ever heard Of preconcerted action
by operators 10 drive down the market
by accentuating unfavorable news that
they might profit through short" sell
ing
~ have heard Of such things" Mr..
Noble replied. but / never knew of
case 10 my own personal knowledge.
have read about them in the news
papers"
"ln all your years as a member Of
the governing board Of the exchange
YOU never have believed that there was
depression due to a concerted move
ueut for short selllng~
' Mr. Noble again replied that he had
n, personal knowledge Of such trans
.ct0n.
Noble Against Pool Plots
Would you ard the men who stand
fer the best that there is on the eX-
change" asked Mr. Whipple, approve
the action Of men subscribing large
sums Of money TO be used in making
short sales. using unfavorable news and
accentuating that news to drive the
market down. md then buying in stock
at a low figure in order 10 increase
their prOftsf"
- can see no improperly" Mr. Noble
finally replied.
But when. during the luncheon hour.
the witness had had time to consider
the full purpOrt Of this answer he evil
the hearing reconvened he asked to be
permitted 10 take the stand to make the
correction.
"Nhen ! gave my answer" he eX-
rlaincd. my mind was dwelling on the
right 20 sell short. II IL was a question
Of concerted action or conspiracy TO de-
uress the market unduly then ] do not
approve Of IL"
"What is the punishment melted out
ly the Stock Exchange for such con-
certed action? ?" asked Mr.. Whipple.
Suspension or expulsion am not
sure which. 49,,
"You said this morning" pursued the
lawyer. that you had read of such
things in the papers. Have you ever
taken any action TO investigate such
lUmors
we never had a sufficiently clear
case"
even though such incidents have
heen frequently referred 10 IN respon-
siblc journals -
"There has never been action Of that
Kind taken" answered the witness.
III those abuses exist. then the
Stock Exchange has the power 10 re-
form itself from within itself?"
"If it gets the proof
yes. but you will agree with the
committee that Il will never get the
proof If it doesn't try 20 get it >"
Eyes"
And wou.d you consider 10 strange
81 some legislative body, acting for the
pcoplc. should seek by legislation to
eject that reform IN view OF the fail-
lte %. che Stock Exchange to act IN
the matter?'
"Not IF they think the evidence is
acre"
Noble Defines Terms
Tho examination Of Mr.. Noble pro.
duced many picturesque definitions oil
various phases OF the exchange. For
instance. IN reply to Mr.. WhippIe
question as 10 why certain stocks we're
listed and others barred from the eN-
change. Mr.. Noble said;
Only securities Of going concerns
are listed. This is to guard against
fraudulent stock"
well. If bank stocks are rarely
dealt with on the floor Of the eX-
change. although they are listed, what
stocks are most actively dealt inF
asked Mr.. Whipple.
"The stocks most active on the moor
OF the exchange are securities which
are wholly or partly speculative.
"How do you diGerentiate :?
well. il can't be done. But take