Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-03-08

NEW YORK. March 8.-The New
York Stock Exchange today suspended
from membership Richard Whitney.
prominent Wall Street leader who as
its president piloted the exchange
through one of its most crucial periods.
A brief announcement from the ex-
change merely explained that the
Committee on Business Conduct had
presented charges and specifications"
against the firm Of Richard Whitney
L. Co. to the Governing Committee
yesterday. and that today the firm had
advised the exchange it was unable
to meet its obligations.
Wall Street veterans could not re-
member similar action involving a
former president of the exchange, and
the announcement from the rostrum
over the big trading floor came as
shock to the membership generally.
Mr.. Whitney is brother of George
whitney, partner in J. P. Morgan
d. Co.
Trading in the exchange. off from
the start in relatively quiet dealings.
held fairly well Immediately following
the Whitney action. There SUISSE
Quently was another sell-on on fairly
stable volume. Offerings dried up
At the approach of noon and some re-
coveries appeared.
whitney Declines Comment.
Mr.. Whitney declined immediate
ant hut
senting attorneys for the Whitney firm,
issued q brief statement asking those
interested to reserve opinion until this
firm has made its answer ="
Mr.. Whitney was president Of the
exchange from 1880 to 1885.
Later in the day the Whitney firm
filed a petition in voluntary bank
ruptcy In Federal Court. The petition
set forth that the firm and the part
ners were willing to surrender all
their property for the benefit OF
creditors.
A statement by the exchange said:
In the course of an examination
Of the affairs of Richard Whitney &
Co., the committee on business con-
duct discovered, on March /, 1888.
evidence of conduct apparently con-
trary to just and equitable principles
OF trade, and on Monday, March Z,
at 1:30 pm. presented to special
meeting of the Governing Commit
tee charges and specifications
Hearing on the charges was set |
for March II.
Suspended for Insolvency.
This morning the firm Of Richard
Whitney & Co. advised the exchange
that it was unable to meet its obli- |
cations and suspension for insolvency
was announced from the rostrum of |
the exchange shortly after 10 am
The suspension came as a complete |
surprise to the financial district. Mr.. |
Whitney was president of the exchange
during the depression years and fig
ured in the internal controversy in
the exchange which resulted In the
election of Charles r. Gay in place
Of Whitney two years ago.
At the height of the contest be-
tween the Whitney and Gay forces,
in April, 1885, Mr.. Whitney offered to
withdraw from the race in the in
terest Of harmony In return, he
was made member Of the Governing
Committee Of the exchange, a posi-
ton which he still holds.
Stock Exchange officials declined to
elaborate on its formal statement,
pointing out it was following the usual
procedure, but indicated something adj
ditional might be said after the hear
ing on March II.
The hearing will be conducted by
the Governing Committee
Had Institution Accounts.
The Whitney firm. it was said, han.
died business mainly for institutions
and large individual accounts, chiefly
In the bond field and had no general
contacts with the investing and specu-
lative public.
It was the first time in the memory
Of exchange veterans that q former
(See WHITNEY, Page A-4.)