The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1909-06-18


ipulator. who sends in a number of
orders simultaneously to different
brokers. some 10 buy and some 70 sell
Since they are legal and binding.
we find a difficulty in suggesting
legislative remedy But where the
activities of two or omre brokers in
certain securities become so extreme
as 10 indicate manipulation rather
than genuine transactions, the Off
GERS OF the Exchange would be remiss
unless they exercised their influence
and authority upon such members in
a way 10 cause them TO desst from
such suspicious and undesirable ac-
tiyity
The subject of corners in the
stock market has engaged attention
The Stock Exchange might properly
adopt a rule providing that the gov
ernors shall have power 10 decide
when a corner exists and 10 fix a
settlement price. so as 70 relieve ID
nocent persons from the injury or
ruin which may result thereirom. The
mere existanee of such rule would
tend to prevent corners.
The Board of Governors of the
Stock Exchange should improve con-
ditions with regard TO failures of
brokers. according to the committee.
II is suggested that the books of
members of the Exchange should be
subjected 10 periodic examination
under rules 70 be prescribed by the
Exchange. II is declared further
that when a broker sells a customers
securities for his own benefit. he
should be guilty of larceny and
statute 10 that effect Is recommended.
II is set forth also that rules should
be made to prevent dealing for any
clerk or subordinate employee of
bank or other moneyed corporation.
More stringent requirements for the
listing of securities on the Stock EX-
change are advocated. among them
that the Exchange should exact
statement showing how much of the
stock of the company has been issued
for cash and also showing what COM
mission has been paid TO the pro-
motors. The unlisted department.
except for tempory issues, should be
abolished. saws the committee. II
/ Is in the unlisted department that
stocks of certain companies which
have not supplied all information de-
sired by the Exchange are traded in.
The passage of a statute Is advocated
providing that in case any purchase
or sale by any broker was not actual
and bona fide. the customer shall re-
cover three times the amount of the
loss he sustained thereby Preser-
walton of the sheets of the Exchange
Clearing House for six years is re-
commended 1t is also recommended
that trading on the Exchange be done
on the basis of a reasonably small
unit. say 100 shares of stock and
that bidder for more than 100
shares he required TO accept offers in
+ the 90 share units. This, it Is held
would tend to prevent matched or
ders.
The committee does not favor the
! incorporation of the Stock EXehan &c
F holding that under existing condl-
! lions being a voluntary organization,
I II has almost unlimited power over
i the conduct of its members. and II
can subject them to instant discipline
+ for wrongdoing. which II could not eN-
ereise in summary manner II il
were an incorporated body. This
committee in RETAINING from advis-
I ing the incorporation of the Ex-
i change. does so in the expect
alton that the Exchange Will in the
/ future take the full advantage of the
powers conferred upon It by its vol
untary organization. and will be act
+ i've in preventing wrongdoing such
F as has occurred il me past. Then
we believe that there will be no ser
i ions criticism of the fact that II is not
! Incorporated IT, however wrongdo-
+ ing recurrs. and it should appear 10
i the public at large that the Exchange
+ has been derelict in exerting its
powers and authority TO prevent IT.,
we believe that the public will insist
upon the Incorporation Of the EX-
change and lis subsection 10 State
authority and supervision.
Investigation shows that on one
active day - per cent OF the total
+ transactions apparently originated in
j New York City and Is per cent in
/ ,4has. eftfau