Perth Amboy evening news., 1922-06-06
LOOKING FOR NEWS LEAKS
IN OFFICIAL WASHINGTON
Daily Letter by Frederic j. Haskin

+, which governs credlt conuitioho "a
the United States to a large extent
a careful reporter can forecast QUITE
accurately what the next step IN the
Formulation of a policy will be.
Fine Scheme Goes Wrong
One of the most elaborate ar
rangements TO get advance news was
made some years ago, not by a news
paper correspondent, but by a
broker who was eager to obtain ad-
vance intimations of Supreme Court
decisions. Some of the Justices OF
the Supreme Court of the United
States lecture in law classes at the
Washington universities. rms
broker learned that Mr.. Justice
Harlan lectured at n of the
schools and was in the habit OF
illustrating his lectures by REFER
ences to the cases which the Su-
preme court had under considera-
ton. OF course, the learned justice
would not mention the names OF
the cases but a person familiar with
the circumstances involved could be
fairly certain of recognizing the
| case he was talking about. me
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 tamil
iarized himself with all the pend
ing cases, decisions in which would
| affect the stock market. He became
/ so familiar with their aspects ana
circumstances that he could recog-
nize references to them without any
names being used.
Patiently he listened to Justice
Harlan's lectures. Finally, n eve
| 49,. 49, i,,etfoa haoan diaPnssin0 cir
cumstances which exactly fitted one
of the biggest pending cases. He
illustrated the law points in his lee
ture by explaining how this case
was worked out in the law. BE
brought it right up TO the logical
conclusion showing what the deci
sion 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 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 il this case was handed down.
1t was precisely opposite to that
which the information so carefully
obtained had given the brokers rea
son to expect. In the usual italic
letters at the end of the decision
were printed the words: Mr.. JUS
tice Harlan 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
reports from the department OF
agriculture. The condition of the
crop influences the price on the cot
ton exchanges. Information of these
periodical reports is guarded care
fully. Five minutes advance infor-
nation skilfully used will make a
man rich. There was an employe
of the department who desired TO
get rich quick. He was one of those
who, in a guarded room, compiled
the telegraphic reports. He carefully
laid his plot with cotton brokers
and agents on the outside. When
the compilation was ready. showing
a sharp change in the condition of
the crop which would make the
price jump several points. he STEP
ped TO the window of the room and
lowred the shade. as though TO
keep the sun out of his eyes. But
that was a signal and, by prear-
AdiibtllltAN a OtCh ottA " a maj
across the street, who sat at ar
open telephone connected with an
office which. in turn, was connected
by telegraph with the cotton *
change. The information thus val
transmitted five minutes before the
public announcement was made.
This employe was fined $4,000
and discharged from the govern
ment service. but his plot had made
him 100000. 1t is not likely that
the trick could be worked again
Every such leak is followed by ar
inquiry, and when any irregularity
is found. steps are taken to close
that avenue.
1t is indeed difficult to organize
leak from Washington in these
times. The principal bulwarh
against the practice so far as news
. paper men are concerned consists
in two factors: first very few news
paper men have n interest ir
stock speculation or any knowledge
OF how to play the market. and sec
ond. and of more Importance, a
high standard OF ethics obtain!
among the news writer's of Wash
ington which inhibits such practices
more strongly than any law or reg,
mHas6nn