The Washington times., 1908-03-15
STOCK GAMBLING
GREATEST CURSE
-RepreScntatfUe Hepburn
Exceeds Evil of Cards and
Race Track, Says
IOWan.
Believes Law to Tax Trans
actions Would Serve
Country.

It was for the purpose Of saving the
business Of the country IroEl an ever
increasing evil, and nos tor the moral up
lift Of the community, that ne intro
duced his bill 10 tax stock transactions,
Representative Hepburn of Iowa de-
clared yesterday. Since he introduced
the measure he has received a tremen-
dous volume OF letters on the subject,
and has been the target OF ali sorts Of
criticisms. Some OF his correspondents
have even limited that he will suffer per
sonaI disaster as the result OF his te-
merity In attacking the business OF
stock gambling.
,'One of my scIicitous friends over in
New York wrote me-" said Colonel Hep
burn, and ended his letter by saying:
If YOU think you are going to get any
credit out of this, you are an ass; II
you think you are going to get any
money, you are a fool
Now. as a matter OF fact, 1 do not
care one iota whether / get any credit
or not. 1 don't see how money could
enter into the proposition anyway. What
J do want TO accomplish is TO relieve
the business OF the country of the ter
rible Drain that stock gambling exacts.
All the race track gambling in the
world: all the games of cards IN the
cities; all the games of chance at Mon
te Carlo and other famous gambling
resorts are as drops n the bucket COM
pared with the enormous transactions
OF the stock exchanges Of the United
States. During the year 1906. the banks
IN New York made 400, 100000 separate
loans on account of stocks.
Few Deals Legitimate.
Il viii venture to say that not per
cent OF the transactions on the New
York Stock Exchange are legitimate
transfers OF stock no, not anywhere
near per cent. one Of the excellent
gentlemen over there, in arguing the
case as well as he could for the eN~
change, Inadvertently said that one
share OF stock might change hands
three or four times in a single day.
Now isn't that q confession? Doesn't
that show that the brand OF business
they do there is gambling. pure and
simple? Is it at all probable that bust
ness men would pay $4,000 or 100000 Tor
a seat on the New York stock exchange
il there were not q prospect Of great
returns?
Would dozens OF brokers, who own
these seats. maintain thousands OF
thousands or dollars a month. if there
were not the sure-thing gamblers pront
in sight? Would they buy these seats
of gold, and wires Of vast cost. j. they
were only buying and selling stocks in
q legitimate manner And would they
now be raising this howl about my bill
If they were not afraid that their gam.
bling operations would stand a chance
of being nipped, and that they may be
compelled to 20 back to the old-time
decent trading?
Figures SI5O,oOO,ooO Profit.
Mr.. Clews figures that if my bill tax
ing stock transactions becomes "A Law,
IL Will bring in revenue OF apout $780,
O00. 900 a year, based on the transactions |
OF last year But, OF course, if my bill
does become a law, there would not be
one-hfth or one-tenth OF the number Of
transfers that are now made. The pure
and lofty gentlemen connected with the !
New York stock exchange are always |
inveighing against the bucket shops, |
and DOING their utmost TO drive them
out Of business. Yet, when the truth /
is told. there isn't anything that the
bucket-shop men do that is not dupH- |
Gated by the New York stock exchange
on an immeasurably larger scale.
The only sure way that I could at
tack the stock gambling was by means |
of a tax; through the revenue. Revenue
is power in this country, as every
where else. and the taxing plan Is the |
quickest as we'll as the fairest scheme !
20 try. NY bill was referred to the /
Ways and Means Committee. and mem /
bers of that committee have assured /
me they are willing 10 begin hearings /
on the matter very soon.
I have an idea that perhaps I could /
have reached the gamblers through the /
interstate commerce law, by so amend !
ing that statute that Il would apply 20 /
all transactions involving shares OF /
stock of corporations doing an inter
state business. Eut if I had attempted
10 reach IL through that channel, there
might have been questions raised as
10 the constituuonality Of the proceed
ing.
There can be done raised as TO the /
power Of Congress TO tax stock sales
We have done it before-for instance
during the Spanish war-and can do il /
again, Just as legally. II We do It &C
cording 10 the process outlined in my
bin. taxing each transaction Il of 1 !
per cent, take my word Tor it, the coun-
Try viii be better of"
The remedy for a case Of "bIues" is
usually found to be a Situation Want