The New Yorker, November 9, 1968 P. 160
ANNALS OF FINANCE about the Security and Exchange Commission's law suit against Texas Gulf Sulphur Company, and thirteen men who were directors or employees of the company, who used inside information of the company's rich ore strike in Canada for their private enrichment by placing large amounts of orders for shares before the news had reached the investing public. When news of Texas Gulf activity leaked out in the Canadian press, President Claude O. Stephens was sufficiently concerned about rumors to seek advice from one of his most trusted associates -Thomas S. Lamont, senior member of the Texas Gulf board of directors. Lamont suggested that as long as the rumors "stayed in Canadian press, I think you might be able to live with them." Tells about Lament telephoning a collegue and friend of his at the Morgan Guaranty Trust Company Longstreet Hinton, the bank's executive vice-president and head of its trust departmane, and gave him a tip on Texas Gulf. Hinton placed an order to buy 3000 shares for the account of the Nassau Hospital, of which he was treasurer. Lamont had every reason to believe that the news was out before he bought shares for himself and his family. Lamont, who died shortly after the lower-court decision - remained exonerated.
