New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-14
|Denylnsurgency
In Consolidated
Stock Exchange
Governors Issue Statement
Saying There Is No Move
ment to Effect Change in
Present Executive Board
Choose z New Members
Ogden ID. Budd and F. W.
Droge Appointed to Fill
Vacancies i'm Governors

A statement was issued by the board
OF governors of the Consolidated Stock
Exchange at the close of a special
meeting called late yesterday afternoon
denying that there is on foot in the
board any movement to effect change
IN administration. This is the first
formal reply that has been made to
the reports of an insurgent cement
against the exchange executives.
I'm view OF the fact that nnumer-
able erroneous reports have been cir
culated during the past several weeks
relative to the Consolidated Stock
Exchange" the statement said, "the
board of governors, speaking on behalf
OF the entire membership of the ex-
change, takes this occasion TO deny
that any change in the personnel OF
the officers of the organization is con-
templated.
THE board of governors is working
In complete harmony in the best in
terests of the public and the exchange
itself"
The meeting was called, it was said,
by President William S. Silkworth
Two new members were chosen for the
board, Ogden D. Budd and Frederick
W. Droge. These are to fill the vacan-
cies caused by the resignation last
May of James A. Gillies and the sus-
pension of w. l.. S. Webster.
Purpose Furnishing Members
Before the governors met yesterday
afternoon it was announced that
'puni shment of one or more members
is the purpose of the meeting" and
that, if the evidence had not been com,
pletely submitted at yesterdays meet
ing, further meetings would be casyed
1t was emphatically dened that the
meeting had any reference to resigna-
tion of officers or members or was in
reference to any charges against the
officers. At the close no inform alton
on the disciplinary measures taken was
given.
Mr.. Slkworth denied many of the
reports that have appeared in print as
to the existence of an ''insurgent'
movement. but refused to make any
extended statement yesterday. He hat
been advised by his lawyers. he said
not to make any answer to these
charges now.
1t was a fact, ne said. that his
brother, George Silkworth, has beer
doing n general floor trading business
on the Consolidated and that he is 6
n ember of the exchange. He had beer
executing orders for E. Nj. Fuller
Co, who are now in bankruptcy, before
he himself had become president, Mr.
Silkworth said. He denied that his
brother had done all, or nearly all, OF
the Fuller trading. Their business
was handled by a number of foo,
traders, he said, and Fuller e. Co
always paid the regular commission
rate.
DER & Co. Not Members
So FAR as E. D. DER G. Co were con-
cerned, Mr.. silkworth said, they had
never been members of the Consoli-
dated, nor had Hughes & DER. At the
DER bankruptcy hearings it was testi-
fed that the former cashier of these
concerns, Fred Adams, had been q
member of the Con solidated, as had
Percy Thomas.
Regarding the charge that two men,
bers of the board of governors had re-
signed as protest against the admin
istration, Mr.. Silkworth stated that
while James A. Gillies had resigned
last May, the other governor, W. L. S
Webster, was suspended from the ex-
change, and that his dropping from
the board followed automatically.
Mr.. Silkworth said the fact that he
had presided at all Of the three So
called "insurgent" meetings eliminated
the theory that they had been called
without authority.
Finally, it was stated that until a
comprehensive statement covering the
developm ents of the last six months,
including the investigation conducted