Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-06-05
BIZ
].

the cases which the supreme court had
under consideration. OF course, the
learned justice would not mention the
names of the cases but a person ia
miliar with the circumstances involved
could be fairly certain Of recognizing
the cases he was talking about. The
broker sent a clever young lawyer to
Washington and had him enroll as a
student in the school where Justice
Harlan lectured. Previously the young
man had carefully familiarized himself
with all the pending cases, decisions
in which would affect the stock mar
ket. He became SO familiar with their
aspects and circumstances that he
could recognize references to them
without any names being used.
Patiently he listened to Justice Har-
lan's lectures. Finally, one evening
the Justice began discussing circum-
stances which exactly fitted one of the
biggest pending cases. He illustrated
the law points in his lecture by ex-
planning how this case was worked out
in the law. He brought it right up to
the logical conclusion showing what the
decision must be in his opinion, upon
such a set of facts.
The young broker-lawyer-student
was jubilant. He took a night train
for New York and laid his report be-
fore his principals. They bought up
large quantities of the stock which was
to be given an increased value by the
decision which Justice Harlan had
thus unwittingly tipped off.
The following Monday the decision
in this ease was handed down. 1t
was practically opposite to that which
the information so carefully obtained
had given the brokers reason to ex-
pect. In the usual formal italic let
tiers at the end cf the decision were
printed the words: "Mr. Justice Har-
Ian dissents." The story says that
the law school method of obtaining
advance information was dropped.
Another extraordinary case OF a
leak is that regarding the cotton re-
ports from the department of agri-
culture. The condition Of the crop in
fluences the price on the cotton ex-
changes. Information of these peri
odical reports is guarded carefully.
skilfully used will make a man rich.
There was an employee of the depart
ment who desired to get rich quick.
He was one of those who, in a guarded
room, compiled the Geographic re-
ports. He carefully laid his plot with
cotton brokers' and agents on the out
side. When the compilation was
ready, showing a sharp change in the
! condition of the crop which would make
the price jump several points, he
! stepped TO a window of the room and
lowered the shade. as though to keep
the sun out of his eyes. But that was
a signal and, by Encouragement. had
been seen by q man across the street,
who sat at an open telephone con-
! nected with an office which in turn,
was connected by telegraph with the
! cotton exchange. The information
| thus was transmitted five minutes be-
fore the public announcement was
made.
This employe was fined 5000 and
discharged from the government, but
his plot had made him 100000. 1t is
not likely that the trick cpuld be
worked again. Every such leak is fol-
| lowed by an inquiry, and when any
irregularity is found, steps are taken
to close that avenue.
1t is indeed difficult TO organize a
leak from Washington in these times.
The principal bulwark against the
practice so far as newspaper men are
concerned consists in two factors:
First. very few newspaper men have
any interest in stock speculation or any
knowledge Of how to play the mar
ket. and second. and Of more impor-
lance, a high standard Of ethics OBJ
tains among the news writers of
Washington which inhibits such prac-
tees more strongly than any Law or
regulation.