The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-06-03
Frederick Haskin's Letter
Of ArEnal
LOOKING FOR LEAKS

can forecast quite accurately what
| the next step in the formulation N
a policy will be
Fine Scheme Goes Wrong.
One of the most elaborate AZ
rangements to get advance news
was made some years ago, not by
newspaper correspondent but by
broker who was eager to obtain adj
vance intimations Of supreme cour-
decisions. Some of the justices NJ
the supreme court of the United
States lecture in law classes at the
Washington universities. This
broker learned that Justice Harlan
lectured at one of the schools and
was in the habit of ILLUSTRATING 5is
lectures by references to the cases
which the .sSpreme court had under
consideration. OF course. the learn.
ed justice would not mention the
names of the cases but a person
familiar with the circumstances in
volved could be fairly certain Of
recognizing the cases he was talk
ing about. The broker sent a clever
young lawyer to Washington and
had him enroll as a student in the
school where Justice Harlan Ter
tured. Previously, the young man
had carefully famiiiariZed himself
with all the pending cases. decisions
in which would affect the stock
market. He became so familiar
with their aspects and circum-
stances that he could recognize
references TO them without any
names being used
Patiently he listened to Justice
Harlan's lectures. Finally. one eve
ming the justice began discussing
circumstances which exactly fitted
one of the biggest pending cases.
He illustrated the law points in his
lecture by explaining how This cass
was worked out in the law. He
brought it right up to the logical
conclusion showing what the de-
cisiOn must be in his opinion, upon
such a set of facts.
The young bToker-lawyer- student
was iubilant He took a night train
for New York and laid his report
before 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 deci-
sion in this case was handed down.
1t was precisely opposite to that
which the information so carefully
obtained had given the brokers rea-
In
itahc letters at the end of the deci-
sion were printed the words: Mr..
Justice Harlan dissents-" The
story says that the law school
method of obtaining advance in
formation was dropped
Another extraordinary case Of a
leak is that regarding the cotton
reports from the department of az
riculture. The condition Of the
crop influences the price on the
cotton exchanges. Information Of
these periodical reports is guarded
carefully. Five minutes advance
skiIfully used will
make a man rich There was an
of the department who de-
sired 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 outside. When the compilation
was ready. showing 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 ont Of his
eyes. But that was a signal and,
by Encouragement, had been seen
by a man across the street. who
sat at an open telephone connected
with an Office which, in turn. was
connected by telegraph with the
cotton exchange. The information
thus was transmitted five minutes
before the public announcement was
made.
This employee was fined $4,000 and
from the government,
but his plot had made him 100000.
It is not likely that the trick could
be worked again. Every su0h Teak
is followed by an inquiry and
when any irregularity is found,
steps are taken 10 close that avenue.
1t is indeed difficult 70 organize
4 leak from Washington ia these
times. The principal buiWark
against the practice so far a. news
paper men are concerned consists
IN two factors: first, very few news
paper men have any interest IN
stock speculation or anv knowledge
Of how to play the market, and sec
1nd. and of more importance a high
standard of ethics obtains among
he news writer's Of Wellington
which inhibits such praCrl more
strongly than any law or r5Eula
ion.