Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-08-29
May Prohibit Matching Orders
in Wall Street.
STOCK EXCHANGE ACTION
Revision of Rules That Would Pre-
vent Manipulation.
FEAR HOSTILE LEGISLATION
Proposal to Force Exchange to In
corporate Gives Brokers Concern.
Many Reforms Suggested.

NEW YORK, May 29.-In anticipation
of a flood of anti-stock gambling bills at
the coming session Of the legislature,
the conservative element on the stock ex-
change. aroused to action by the scandal
Of last Saturdays flagrantly manipulated
market. have been considering changes
in the stock exchange constitution which
will make impossible repetition OF the
dealing in matched orders for thousands
Of shares which during the two-hour
session practically crowded out Of the
market the buying and selling orders in
1OO-share lots which represented the
greater part of the days legitimate busl-
ness.
AS the constitution now stands 1t Is
possible for interests engaged in boost
ing the market to put in buying orders
for large blocks OF stock which will take
precedence of the 1OO-share orders in
that broker may pass over offers OF
numerous lots Of this denomination for an
offer OF large amount at higher price.
If the campaign is for lower prices the
reverse may be practiced. Under article
XIII Of the constitution dealing with
bids and offers" the constitution says:
OFFERS to buy Or sell specific amounts
(other than 1OO-share lots) may be made
at the same time and independently ac-
cepted."
1t was under this ruling that the traders
In Saturdays market were able to bid
prices for blocks of 1000 shares or more
up and down. sometimes to as much as
prices obtained for 1OO-share lots. Those
who are determined to reform the meth
DDS OF the exchange In anticipation OF
legislation propose among other measures
to change this article of the constitution
to make 1t obligatory on a buyer on the
floor to take all Of the stock offered at
the lowest price. regardless Of the unit in
which it is offered. up to the limit of
the purchasers requirement. In the SELL
ing Of large lots the corresponding rule
will be applied. With the adoption Of
this reform, veteran traders on the ex-
change say, wholesale manipulation will
be practically eliminated.
The nervousness of the street in the
face of the flood Of anti-speculation bills
which the lawmakers are known to be
Matching has brought out a number of
other proposals in the way of reform
which the thinking men on the exchange
seemingly is too impracticab!e to receive
consideration.
Incorporation Plan Approved.
Out Of the numberless proposals in the
way OF adverse legislation Of which the
exchange authorities have heard none.
perhaps. gives the brokers more concern
kud1l TIC ISpOEtcu pEOpOSdl 10 compel the
Incorporation Of the stock exchange,
which is now organized as a private club,
and Is thus immune from the necessity Of
making reports and il able to conduct its
affairs with q secrecy and positiveness
which does much toward maintaining eff
fective discipline. AS a club there is no
appeal from the rule Of the governing
committee and its various subsidiary rul
ing bodies. and there is much to back the
contention Of the exchange officials that
It's affairs could not be SO efficiently man
aged as they are at present under any
form of organization.
The Mcintyre and Coster, Knapp & Co.
failures last spring. with their accom-
panying criminal charges, and the recent
scandal of manipulation in the now ia
have focused public attention on the
gambling possibilities Of stock trading
and the obliteration OF the legitimate
function of the exchange. and the authori-
ties realize that the public, seeing only
the sensational features of the case, are
likely to take radical measures which will
hurt legitimate trading equally with gam
bling devices. This realization has
brought to an acute stage the often dis
cussed plans for reform. and it is the
general expectation that the next regular
November will have for consideration a
number Of changes in the constitution
which number Of the leading men on
the board are now known to be formulate
ing
One Of the measures to be introduced
at the coming session of the legislature
Of which Wall street has had advance
notice Is an outgrowth of the Mcintyre
& Coster. Knapp & Co. failures. which