New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-12-19
OPINIONS ON SPECULATION
WHAT THE SENATE COMMITTEE HEARD.


DAY.
j. r. Keeno was the principal witness be-
fore the State Senate Committee on corners" and
futures" at the Metropolitan Hotel yesterday. lie
came into the room whiis the manager OF socaed
bucket shop" tes,fyiog to the manneri In
which his business carried and sat with an ab-
sent-lnndcd air upon sofa until the witness had fin
ished When Mr.. Kecne called on for exper, test
mony AZ 10 the difference between the bald gambling OF
the "bucket-shop" and the specul1tons OF
the exchanges he showed however, that
he had not been inattentiyo TO the testi-
mOny OF his predecessor in the witness chair HIS man
mcr was very quiet and selfconancd his answers wers
direct and generally prompt although once or twice ho
seemed to lose himself In abstraction and called for
repetition OF the question: AMI 20 the most important
questions he gave deliberate thought before replying
lie under examination for two hours, and alhough
Dr. Boyd's questions carried him over great deal Of
ground, lie was never al loss for lucid
and comprehensive answer, except to some Of the
minor details OF tine great wheat transaction OF n few
years ago. which been talk a1olt In t1e commit
tee as the Keene corner" However he dil nOs show
reluctance to discuss the matter though he de-
cued give the OF his cOpartners In the trans
acton unless the committee deemed 1t OF public I'm.
portance that he should do Tic committee decided
It was not essential under the circumstances.
The Grst witness called was the Rev DrSamuel Iren9w
Prime Editor OF The Obserrcr, VINO read statement in
which he gave mis- or speculative trading its n-
agree deliver IN the future coal grain. Stock or any
other property at certain price at certain time is not
necessarily wrong; to buy IT at certain
price when SO delivered But when such
transactions are not based supposed
knowledge Of the probable supply and demand Of the
article, they partake Of tire nature Of gambling Nothing
Is more dcmorazng to business and ruinous 10 tho
COMMUNITY tnan the prevalence of spirit OF gambling,
and whatever ENCOURAGES or leads % n ougbt 10 be dls'
c0uutenInc a. and II pJssi0 prevented
>. ID. C. BokkGlin was rcca.ei ana Pqe'I.ohed ABOUT
81 spoeired that The eanEs Mere in w6est and
provisions aud ia extent from 800 10000 bushels
Of grain and :, from 20 to 300 bar; bar;
on gram and % TO 30 cents barrel pork were
acted Customers pernI c to close their IDEALS
at any minute, Der wiped QUE II tho
narNet fell at any time 50 az the margin Ge
posted with the exchange H. admitted that his place
was called a"bucketshop" and thai there had never
been delivery OF gram provisions made. The trans
| actions all on the oasis OF the quotations OF tho
Chicago Board OF Trade, received over the Western
| Union Ie., graph wires.
Mr. KEENE's TESTIMONY.
Mr. Keene was sworn and told tie committee that ha
| "supposed" he sDeculatOr AMI had been for
twenty years. in the cities OF san Francisco ana New
YOk. To the general question to his opinion Of the
effect and influence OF corners AMI futures commerce
and the public welfare he objected that It was very
difficult TO SO broadly pui question. But IL
you will precisely state the question: said lie, III give
| you precise answer" DR.. Boyd explained that tho
question couched in the language OF the resolution
under which the committee acting Mr. Keele
| then salG:
| ~ never knew c'rner in aly commodity that
worked injury to business and properly since came
to NewYork except oue because all corners thaT have
been made III Dreadsus have existed so snort length
OF time mat no injury mas been done Had they oeeh
| continued they might possibly have hurt commerce..
On the contrary the agricultural interests have been
benefited ami the damage has alln upon tue promoters
As sad, never more than one corner that did
What corner that, Mr.. Keenel"
"Tnats the corner wnicn at present exists IN oa-an
arangcment between the anthracite coal companies 10
keep dp tno price which bears heavily All consumers.
wno are burdcned with excessive debts aud enormous
stocks ana vino had to resort 10 tnat means to pay the
debts and dividends their stocks. lt
has continued for long time, and OF course the
| puble have b,en compelled 70 pay great deal moro
| tnan they ouSIt for the article"
~ no arr tue persons who o.i -inated this cornerp
done what oilers would do 70 help Ia.r conpanIes,
though at the puoIc expense. There have been SO
much expansion a watering OF stoc that keep tqelr
neads above water they have been Obliged to combine
! as nave said"
'Will you explain what watering stock means :"
Watering STOCK means increasing the capital WITH
corporation at valuation, and the selling o. that
property u the corporation at large advance, when
the aptal does not get an equivalent"
TO what extent has the system of watering stock
been carried on by the hcads OF coal cOpIniesf
II don't know that could ceany instance 80 far "a tho
coal conpaes are Concerned excsp. as "ey were com
pay expenses. DON'T know Of any increase OF capi
tai stock ny then except under that pressure
"EXpian how t..cy made tbci, corner"
"Tbey combined together to nix the price OF coal and
agreed arbitrarily ~ maintain it. consequently 1t s
"Can you explain TO the committee how much tho
price of coal per ton has been increased by of
| This corner ~
should think coal selling 81 per ton at tide
water more tnan the COM anies should sell IL for with
due regard to thc interests OF the public Coal "a selling
| Tor almost twice much here as Il is in England"
| NECESSITY OF SPECULATION
"what is your opinion OF the system OF dealing in f
| lures ~
don't think the commerce and business OF the
| try could b. carried on without that system"
"Mr Keene, you in the room and probably heard
the testimony of the last witness What your opinion
| of the effect OF such business upon the public well
fareP
IL should think it rather dcuoralizing in Its et.
fects Iuasmuch tIerc is pretence TO make delv
| cries 1t, Resolves itself into ganbhng
And all business conducted IN sucn style you con-
Yes consider business of that kind pure gambling
Pm not defending gambling and there is element
OF business IN do not consider myself competent 10
"what rcuiedy would you suggest to suppress iti'::
TGea You td!nE it Is daty the Legislature to
should think IT the duty of tho Lawmakers to
Wnen such made described by the last
witness at the Produce or stock Exchange do
YOU consider them equally harmful T.
- rne transactions not of the same nature at all
II man buys future ~ UniesGG ana contracts to pay
sOulc purchase bay 1000 shares of stock at tao
stock Exchange, must pay tomorrow. may sell
ngan, but tnat Is n separate transaction II buy
100000 bushels of grain IN CHICAGO for delivery nert
mOuin, / must take Il. / may III the meantime sell
il out. but tnat separate transaction. think the
committee aD0rs under tho idea that dealing in futures
gambling transaction aud that We donG buy
an article outright; but do In the transactions
narrated by gentleman here there is transaction
because there obi CATION nad, requiring the delivery
or accepts VI the grAin IL /. merely gambling the
uctuation OF the market Now the committee can SEQ
how the Transactions fucato business because
tne Chicago market which IL he greatest market In the
world is merely she reheeuon OF the public
! opinion OF the cOuntTy-Uf the Judgment ac-
| cording to their best lights of the millions
people who Interested there IL Is not fair 10 call
| tuis pure gambling, and IL isn't fair TO say that
| there Isu't large element OF gambling in H.
All business In this country is speculative Ia
| The highest degree Without IL what POSI-
| fiDn would ule Iarmer commission merchant