The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-11-23
The Open Season for Bear.
STOCK EXCHANGE REFORMS.T
Bankers Brokers' Mine Owners and Investors Discuss the Stua
ton and Suggest Remedies Stock Exchange Clearing
House. Examination of Mines and Prosecutions

false reports. If fragrant case can be (
proved, I believe prosecution by the
directors of the mine would have
beneficial effect"
Should Prosecute knockers"
Jacob Bamberger, manager of the !
Daily West, said he was inclined TO Ia /
vor making an example Of bears I
against whom it could be proved that /
they circulated false and malicious re
ports.
New York has a stringent law /
against such practices. ne said. ana
1 believe the next legislature should
take the matter up and pass a law III
Utah along the same lines With the
law as il is. if ] can catch anybody
/ lying about the Daly-West and sue
Iceeding in this way in depreciating the
value of the stock, I snail feel II my 4
duty to the stockholders TO bring legal
action against him.
/ Mr.. Bamberger strongly favored the
establishing of a stock exchange clear
/ ing house. every broker selling stock
delivering it through the clearing
I house and receiving therefrom IN pay
ment a certified check.
From Brokers Standpoint.
w. H. Clark made a statement from
the standpoint of a reputable broker.
THE brokers should not be blamed
altogether for these conditions, ne
said. neither are they ali guiltless.
/ There are a few brokers who have no
doubt been guilty of using unfair
methods to aid them in depressing
values in 'shorting' stocks, but the vast
majority of the members of the stock
exchange are now carrying for them
selves and their customers pracucaily
, all the stocks they can. They are not
going around trying to depress values.
b The most conspicuous manipulators
? week in and week out are the Soscalied
I insiders These manipulators seek TO
f deceive the public and the brokers as
well.
o .'The majority of the members of the
exchange are anxious to do everything
9 in their power to aid legitimate trad
ing. The abolition of futures, which
= 1 proposed at the session yesterday, IS
- demanded by the public, and it may
!. help conditions, but that is not the only
! trouble. The fault lies largely with the
i public themselves. They become car
, ried away with enthusiasm WheT
: stocks are going Up and rush in tC
y buy at prices way above actual values
> doing business on margins. TheI
. comes a reaction and the margin Il
II wiped out. Perhaps they cannot pu
u up any more margin, and the stock i
u thrown on the market This depresse
y prices still more, and then more mar
r gined stock is brought out. The sunni
y continues. aided by other influences
W and the public suffers, but the brok
IL ers suffer, too.
< There are several reasons for pres
ID ent conditions. One great cause
re the h0tatiOn Of the Carisa and Unci
Sam companies. These two deals with
3 rr14 ION m h
ct exchange at least $250000 and possibl
n much more That much support of tn
p market was consequently lost An
st other phase is that money is tighte
es than il was. During the spring an
I'd summer the banks had more none
t. than they knew what to do with.
l. order to keep the money in use IN
II. banks put it out on demand loans 0
st mining stocks The banks began
ne call in the demand loans on minin
~ stocks. which were naturally the mrs
es class they should begin to touch Tn
a has diminished buying and increase
Iy selling. Then the unsettled cOnditio
Sc Of the metal market has aided Ii
ch slump.
The brokers are anxious to do eN
%. erything they can to better condition
ms believe the abolition of futures, III
&C esta blishment of stock exChang
al clearing mousse anu lAlE t-tl0sf AAte. ~
nd of mines for public inspection at lea
nj once in two weeks viii aid the situi
ton, but the best thing that can hal
pen is for the wealthy men of Uts
and elsewhere TO begin TO buy mo-
he freely the good stocks that are no
he being offered at a price far less tna
he they are worth as an investment"
ar Views of Other Operators.
-, DR.. p. A. H Franklin, manager
- the Yankee. was in favor of freque
=. expert reports, paid for by the e
y" change. on the conditions of the var
- Gus mines the stocks OF which a
- listed.
% Thomas Weir, manager of the Ala
a said that trading on margins and mi
an representation of the conditions OF I
a mines We're principally responsible
n the present slump.
lg ut is as bad to initiate values by !
lld ing as it is to depress them" said N
ID Weir. Vigorous measures should
ng taken to stop such practices.
SIN brokers are not the only ones who a
ull guilty, and only part Of them ha
d. been doing these things. The tradi
en- on margins, however, should
zen stopped"
for James Larsen, director in the NJ
mo --
ing Continued on Page p