The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1917-01-24

the expense OF "the public" and take
advantage Of "unfavorable news In
order to depress prices and "cJver" at
a profit. Short sale" spectators are
alleged to have been the cah" bene-
ficiaries. Both Witnesses were re.
quired to describe in detail the opera
ton Of the stock exchange machinery,
with special attention to methods used
to sell the market short" Mr.. Whip
pie brought out with particular en-
phasis that the so-called public" sell
dom sold short" the large majority
of such transactions baiag conducted
by professional operaio:s.
The attorney also ELECTED the iD1or-
nation that 1t was the practice of bro
kers, with the consent of their custom
ers, to loan stocks bought on margin
to other brokers. who in Turn used
them for short" sale transactions.
Thus it was explained the stock OF the
customer who hopes 10 profit by ris-
ing market could become d weapon N
the hands of the short" sale specu-
lator who hopes for falling market.
That is" pursued Mr.. Whipple, "a
man may furnish the petar1 ON which
he is hoist?"
THAT is possible" Mr.. STREET. con-
coded
DefenQSQ SnOTI SSlllnSs
Mr.. STREET. defended short selllne
as a necessary requisite 10 Tree
market" and said, that experience IN
Germany and France had SHOWN II
was advisable, for economic reasons.
tn dispense with it. He conceded
however, that if short" selling should
he abolished there would not be so
much speculation.
THE short sale then remarked
Mr.. Whipple, us the foundation or
speculation?"
II would not say that" STREET re-
piled. Il mean that there would not
be such volume Of speculation IN,
cidentally. the. speculative respect
would be greater"
The examination OF Mr. Noble re-
volved largely around the question: as
to whether there was actual manlPu
lation by combinations OF spectators
on the short" side Of the market.
Noble testified that he had read III the
newspapers that such operations were
conducted, but added that none ever
had been investigated by the board or
governors. Whipple pursued this line
in interrogation vigorously, demand
ing to know why. in the face OF many
persistent reports Of short selling IN
IeSpOuSlUlo JUL uoA1; NV 49,
taken no action. Noble said there
never had been clear case that ne
knew Of.
Turning then TO Mr.. Mobiles per
sonal views of the ethics Of the
market Mr.. Whipple inquired diligent-
~ in many different forms II he con-
sidered short" sale operations. de-
signed 10 accentuate unfaforaole
news In order TO depress prices and
make profits, were Immoral. Inc
witness finally conceded that he saw
no improperly in these operations.
but on resuming the stand with MS
own request later in the day amended
his answer He said he had mlsun-
derstood the tenor Of Whipple's Ques-
ton and explained that he did not APP
prove Of "a concerted action or con-
spiracy 10 depress the market sr'i-
hcially."
Bernard Baruch. who sold United
States Steel short" heavily about the
time the alleged leak" occurred and
who has been declared BY rumor TO
have been one Of the benellciaTles OF
advanced information, attended the
hearing today with his records pre-
pared to testify. Only a few other
witnesses we're present, as it was
planned today merely to lay the
ground work for the inquiry.
Less than two hundred persons
were attracted by the hearing. Ihere
were no women spectators except the
wife of one OF the committeeman.