The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1909-06-17


market have not attempted to form an
Organization. The attitude of the
stock Exchange 10 therefore largely
responsible for the existence of such
abuses a. result from the want OF or
ganization OF the curb market.
The Stock Exchange should compel
the formulation and enforcement OF
such rules as may seem proper for the
Regulation OF business on the curb, the
conduct Of those dealing thereon. and.
particularly for the admission OF Sc
curities to quotation"
The abuse of advertising 10 gone Into
at some length, the COMMITTEES declar-
ing that much OF the discredit in the
| public mind attaching to Wall Street
Is due to frauds perpetrated by means
OF alluring advertisements.
Papers which honestly try to distin-
| sufsh between swindling ADVERTISE
ments and others, may not in every in
stance succeed in doing So" the report
says, but readiness to accept adver-
| tisements which are obviously traps
for the unwary, is evidence OF a moral
delinquency which should draw out the
severest public condemnation.
Another serious evil is committed
by men who give standing to promo
tions by serving as directors without
full knowledge Of the affairs of the
compapies." An amendment to the
penal code is recommended, providing
that any person VINO advertises falsely
concerning a corporation shall be gull
ty of misdemeanor and that any pub
Usher Of a newspaper or other publ
cation who fails to obtain from .the
person responsible for such an adver-
tfsement written and signed state
ment to the effect that such person
accepts responsibility for the same.
shall be guilty OF a misdemeanor.
With reference TO bucket shops. 1t Ia
recommended that a feature of the
Massachusetts, law be adopted making
II necessary for conviction to show
only that the bucket shop keeper in
tended the trade to be settled by diff
/ ferences and not by transfer of prop
erty. 1t is advised also that a law
be passed providing that. SO far as the
transmission ON continuous quotations
Is concerned, telegraph companies shall
not be deemed common carriers, or be
compelled against their volition to
transmit such quotations to any per-
son; also a law providing that IL a
telegraph company has reasonable
ground for believing that 1t is supply
ing quotations to bucket shop, 1t be
criminally liable equally with the
keeper of the bucket shop.
The Commodity Exchanges.
In its report on the exchanges that
deal in agricultural products, the COM
mittee uotesq the report of the Indus
trial Commission OF Congress In 1901.
showing that selling for future deliv-
cry. based upon forecast of future
conditions of supply and demand, is
an Indispensable part Of the worlds
commercial machinery by which prices
are as far as possible, eualfzed
throughout the year to the advantage
of both producer and consumer. The
committee then says:
Buying for future delivery causes
advances in prices; selling short tends
to restrain inordinate advances. In
each case there must be a buyer and
q seller and the interaction of their
trading steadies prices.
Dealings for outsiders are usually
upon 10 per margin; obviously II this
margin were increased generally, say
to 20 per cent, q considerable part OF
the criticism due to losses in specula-
ton, particularly as to the cotton ex-
change, would be eliminated"
The Produce Exchange.
The committee disapproves transact
lions in mining shares on the Produce
Exchange in the following language:
From our examination of the trad
ing In mining stocks recently introduced
we conclude that the lack of expert
ence of this body in this class of busi-
ness has resulted in a neglect of
proper safeguards to the investor and
an undue incitement to speculative
transactions of gambling nature. and
should not be tolerated on the Produce
Exchange"
The Cotton Exchange. -
The New York Cotton Exchange is
described as : the worlds clearing
ture delivery Is declared to be neces-
sary to the harmonious and uninter-
rupted mvement of the staple from
producer to consumer. OF speculation,
the committee reports:
There have been in the past in
stances of excessive and unreasonable
speculation upon the Cotton Exchange.
notably the Sully speculations of 1904
We believe that there is also great
deal of speculation Of the gambling
type mentioned in the introduction to
this report. In our opinion, the Cot
ton Exchange should take measures to
restrain and, So far as possible. pre-
vent these practices, by disciplining
members who engage in them. The
offices of the exchange must in many
cases be aware of these practices, and
could, in our opinion, do much to dis
courage them"
The Coffee Exchange.
The rule of the Coffee Exchange
providing that in case Of a corner the
officials may hx a settlement price is
commended by the committee.
The Other Exchanges.
The exchanges dealing with fruit
and hay are not concerned with spec
ulation. The committee, however, dis
approves the practices on the Mercan-
tile and the Metal Exchange on the
ground that their quotations are not a
record of actual transactions. On the
Mercantile, says the report, there are
some "desultory operations in so-called
future contracts in butter and eggs"
but the published quotations are made
the report continues, "is actually a
close corporation of the buyers of. but
ter and eggs, and the prices really
represent their views as to the rates
at which the trade generally should be
ready to buy from the farmers and
country dealers"
similar. but equally deceptive. is the
method of making quotations on the
Metal Exchange. In spite of the ap-
parent activity of dealings in this or
ganizat ton in published market reports,
there are no actual sales on the floor
of the Metal Exchange, and we are
assured that there have been none for
several years. Prices are, however.
manipulated up and down by a quota
ton committee of three, chosen an
nually. who represent the great metal
selling agencies as their interest may
appear, affording facilities for fixing
prices on large contracts, mainly for
the profit Of small clique, embracing.
however. some OF the largest interests
in the metal trade.
These practices result in deceiving