The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1908-02-26
Clearing House Question Raises
FactionaI Fight, in Which
Ii Is Defeated
Measure Intended to Prevent
Tricksters From Operating
Hit Shrewd Blow
Minority MOcks at Fail
ure and VIII Persist in
Its Efforts

The faetional fight among members
of the San Francisco stock and ex-
change board arising over the cues
ton of having clearing house in con-
nection with the exchange came to an
issue at a brief and stormy session
yesterday afternoon and resulted not
only IN the defeat of the project. but
in the deposition of the entire gov
erning committee
President A. B. Ruggles has fve
days in which to appoint another gov
erning committee. The promoters OF
the. clearing house plan, though de-
feated in the FIRST fight, have by no
means abandoned their scheme and
intend TO push the matter at every op-
portunity. contending that a clearing
. house alone viii insure legitimate busi-
ness on the exchange and prevent tao
tics Of q questionable nature.
Those who opposed the clearing
house hold that the scheme is cum
brous and impractical and that the
present rules Of the board are amply
sudhcient for the prevention Of shady
transactions. The clearing house was
Intended as a sort Of central bureau
through which every transaction should
pass.
The governing committee deposed
yesterday consisted Of A F. Coan. W
II. Noise. Charles .. Lsing, B. r shaw,
II. r Shinn. F. o. Chamberlain and
Charles Hirschfeld In the hands of
this committee was the absolute rule
OF the board It was possessed Of
plenary power.
COMMITTEE MAKES PLAN
Following the. IRE this committee
went actively to work and laid down
the plans for the formation Of a clear
sux house IN connection with the ex-
change It was maintained by the
members OF the committee that the
operation Of such a scheme would give
the client the fullest opportunity of
keeping check on his broker.
Rumors were current OF brokers sell
sng a bunch Of stock at one figure.
raining = lower one TO the clients and
pocketins the difference. Other rumors
were that some brokers were IN the
habit OF selling short and then delay
ing the handing over Of the stock until
the market was favorable
SIX WEEKS TO GET STOCK
7 have had to wait six weeks for
the receipt of stock sold TO me-" said
". Il Noise, one of the committee
s-The idea Of g clearing house is to
facilitate all legitimate business. The
committee intended that the rules gov
erning the clearing house should be
lax in the beginning and that the
scheme should be gradually worked up
20 point where If would be on q par
with the great exchanges of other
cities
There was no desire on the part Of
the governing committee to work a
hsrdehip on any one If he was doing
or trying 10 do a legitimate business.
but . clearing house would work a
hardship on men who were doing bust
ness on jswbone who were selling
stock that they had no intention Of
delivering until the market went in
their favor"
The opposition held that the delivery
or stock was one Of the weak points
about the exchange. 1t was contended
by those who voted against the propo-
sition that II was impossible for stock
70 be delivered in p hours. inasmuch
as Il took longer than that for It to
arrive from the hands Of the owner,
who may be in Goldheld or in New
Jersey.