The evening world., 1917-01-23
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(Continued From First Page)
unfavorablc news TO further depress
prices.
LEAK COMMITTEE HEARINGS
BEGIN IN CUSTOM HOUSE.
Tho Rules Committee began II,
New York hearings in tho Custom
House promptly at 10 o'clock thi,
morning.
When President Noble took the
witness chair Counsel whipple in.
duired whether Chairman Henry OF
other members Of the committee de-
sired TO conduct the inquiry, but the
Chairman directed him 10 proceed.
After describing the general meth
ods OF business on the Exchange
counsel led the witness on to the
Stock Exchange Clearing House sys-
TEN. where all trades made by broker.
on the floor are recorded.
NO OFFICIAL RECORDS KEPT or
QUOTATIONS.
Between IS and 30 per cent. Of all
transactie Is are cleared through the
Clearing House." said President
Noble. "Oniy stocks In which the
transactions are so small as to be
negligible, are not recorded there.
"As for daily quotations, the es.
change does not keep any official
record. The quotations sent out
over ticksrs are gathered by te'e-
graph operators on the noer Of the
Exchange. but are not necessarily
oonpists.~
The printed sheet issued at the
close Of the day u q compilation
made up by an outside printer and
not guaranteed by the Exchange,
Noble explained.
"Then the stock Exchange has alb
solute knowledge OF what occurs on
tho noorg" asked whipple.
That Is right" Noble replied.
Q. And this Is available to the com.
mittee7 a. Yes.
The first fencing and hesltancy in
President Mobiles testimony came
when Counsel Whipple asked:
"is II possible 20 manipulate
. movement in speculative ssour-
tiles on the Stock Exchange eth
er by collective or individual ao.
tivities7"
IL should like TO know first what
particular activity YOU consider would
constitute manipulation" replied Mr.
Noble. Buying a stock would tend
to enhance its price and selling II
| would tend to depress It."
After some minutes OF sparrins
Mr.. Whipple said:
II shall not press the point now,
but the committee will desire TO take
Il I'D later. I commend the subject
to you for your praysrful eensidera'
tion in the meantime, a. We shall re-
turn to II for further enlightenment
Taking up next the difference be-
tween stable Investments. securities
and speculative stocks. President
Noble named as the principal specu-
lative issues during December last
United states steel. Anaconda Cop
per, Mercantile Marine, General
Motors, WHY'S Overland Motors,
Reading Railroad and Union Pacific
INQUIRY is TURNED INTO THE
"sHoRT" SELLING PHASE.
whipple inquired what there was
about United States Steel that the
public did not know which could
make It speculative. Noble replied
II was not so Ing since United States
Steel did not pay dividends.
O. Everybody knows that, don't
they? A. Yes.
O. They make statements. don't
they? A. Yes.
Noble then explained that opinions
differed as to the profits the stock
would make.
whipple then turned to the SUBJ
ject Of short" selling, asking Noble
II he ever had known OF preconcerted
movements on the part Of operators
to drive down tho market by ac-
centuating unfavorable news that
they might take short PROFITS.
II have heard OF such things"
Noble replied, but l never knew
of case to my own personal knowl-
edge"
"In all your years as a member OF
tho Governing Board OF the Ex-
change. you never have believed
there was a depression due to a con-
certed movement for short sellingT'
Whipple asked.
Noble did not appear to grasp the
Interrogation and Whipple explained
further.
II am merely asking YOU" ne said
~ you have been oblivious TO what
has taken place."
Again Noble replied he had no per-
sonal knowledge OF such a transac'
ton as Whlpple described.
NOBLE ADMITS INVESTIGATIONS
CONCERNING WASH" SALES.
Whipple then asked II the govern
ing body OF the Exchange ever hac
made an investigation 20 determine
IL there had been short sale plots
| OF the kind he described. Noble re-