Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1908-12-26

paign against the worst features Of
speculation. Wall street men profess
to believe that the governor proposes
nothing drastic, but will take some
such measure regarding stock transac-
tons as he has already taken on bank
ing. But those who expect him to
stop short of going to the bottom of
things and recommending sweeping
action if the facts warrant. as they
certainly do. do not know Hughes. He
is no halfway man. He means to get
the straight of things and to bring
them up to honest ard decent stand
ards at whatever cost.
A vast amount of the business In
Wall street represents the legitimate
buying and selling of securities.
Against this there has never been COM
plant. What has scandaliZed the
country have been the buying and sell
ing on small margins. which do not
represent bona fide transactions at all,
but only Il form of betting on the
turn of the market. Another glaring
evil that has called forth criticism is
the practice of selling ''short"-that is,
Of selling what one does not own.
Many measures have been proposed to
end these two abuses. One IS TO In
crease the margins to so or 40 Per
cent-they are now as low as 10
which would do away with most of
the gambling. Another proposal is TO
put n heavy tax on all undelivercd
stocks and even to penalize the selling
Of more of given stock than the
seller has in his actual possession.
There are other abuses in the street
that it is hoped the investigation will
bring clearly before the public. Al
ready Governor Hughes has moved
against the bucket shops. which repre-
scented perhaps the most scandalous
form of stock gambling. In these the
margins were as low as 5 per cent or
even lower.
Commissions Wide Power.
At the last session of the legislature
Governor Hughes recommended such
an investigation, but it was turned
down. He now proceeds to make it on
| his own motion, which he has Il perfect
right to do, without asking the legisia-
ture anything about it. In his letter
to the members of the commission he
gives them entire latitude to inquire
into every phase Of the subject and to
recommend whatever they deem fit.
AS Wall street affects the entire com
| try and indeed the whole world, the
| wide power given to the commission
makes it one of the most important III
vestigating bodies in the history of
the nation.
There are nine members, including
editors, merchants, bankers, lawyers
and educators. They are all men Of
| the highest standing in their respective
fields. and some of them are of nation
al reputation.
| Horace White, the first man named
and presumably the chairman. WIS for
many years editor of the New York
Evening Post, prior to which time he
was editor of the Chicago Tribune. He
was born in New Hampshire in 1884
educated at Beloit college, in Wisconsin.
and has been a newspaper man ever
since the days of the civil war, He is
lalso author of books on political econ
omy and finance.
Charles A. Schieren was formerly
mayor of Brooklyn before that city
was merged with New York. He is
one of the largest manufacturers of
leather goods in the country and Off
Ger and director in many banks and
financial institutions. He is also presi
dent of the Brooklyn Academy of Mu
sic and vice president of the Brooklyn
Institute of Arts and Sciences. He
was born in Prussia in 1912.
A Stock Exchange Member.