Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-01-13
DISCUSSION STARTED
Defenders of Wall Street and
Stock Exchange Talk.
HAVE THEIR GOOD POINTS
Bucket Shops Mislead and Specula-
tors Only Are Stung.
MARGIN TRADING A NECESSITY
MARGIN TRADING A NECESSITY
Dean of School of Commerce and
Finance, University Of New
York, Explains.

By WILLIAM F.. CURTIS
| Special Correspondence of The Star and the
Chicago Record Herald
NEW YORK. January II. 1909.
Horace White. chairman of Gov
Hughes commission to investigate spec
ulation in New York. tells me that he
and his colleagues have formed no def
mite plans of work. except to begin with
the produce and cotton exchanges and to
finish those institutions before taking up
the stock exchange.
Our aim will be to complete our work
| within three months. so that the legisla-
ture can have the benefit of such re-
suits we may reach before its adj
journment" said Mr. White. NO APP
preparation has been made to pay the eX-
penses of this investigation, and there is
no certainty that any will be made. AL
thouah offers have been made by private
persons not members of the committee
we have not felt at liberty to accept such
contributions. We are therefore re-
stricted to such means as we can af-
ford from our own funds. This is one
of the reasons why we have not yet
laid out our plans for collecting informa-
ton, but there will be very little delay.
We will divide up into subcommittee. so
as to work more rapidly and cover sew
eral branches of the inquiry at the same
time
Will Stock Exchange Have Counsel?
The officials and leading members of
the stock exchange have seriously dis
| cussed the question whether that body
should appear before the committee by
attorney. SO that its interests may be
| looked after. but the decision has been
made in the negative. first. because of
the universal confidence in the ability
and the impartiaity of the committee:
secondly. because of the disposition to
minimize the Importance of the agitation
and, thirdly. because it has always been
customary to ignore the attacks that
have been made upon it. Nevertheless,
certain gentlemen who are familiar by
long experience and association with the
policy and the transactions of the stock
exchange are preparing to enter de-
| Tense. or at least make an attempt to
enliShten the committee from the point
of view of the conservative and solid
members
Collin Armstrong for twenty-five years
financial editor Of the New York Sun.
and now editor of the Wall Street Sum-
mary. in discussing this subject yester
day said that no individual organisation
has done more than the New York Stock
Exchange and the Chicago Board Of
| Trade to suppress bucket shop transac-
| tons and gambling In stocks and COM
mOdties, and he was confident that both
organizations would he glad to Go more.
Kick Only When They Lose.
mo one has an unkind word to say
against Wall street, the stock exchange
or the Chicago Board of Trade if his
ventures are successful" continued Mr.
Arms trong. NOR does he give credit for
such successes. but he invariably charges
them with responsibility for any losses
he may suffer. The successful dabbler in
the market always takes the credit to
himself. His winnings are due to his
own foresight sagacity and superior
knowledge. but if he loses Wall street
! Is always to blame.
Tho public does not have to speculate
and no effort is made by reputable brok-
ers to induce any one to do SO. AS a
rule any one who uses advertisements Or
other methods to get people to speculate
| is unworthy Of their confidence. In my
| opinion the bad name that has been given
TO Wall street by the pulpit. the press
and the politicians is due to a lack of
accurate information. The largest losses
that have been suffered by the public
have been made through bucket shops
get-rich-quick schemes, fake mining pro-
| motions and a host of ingenious plots
that are put forth from Wall street to
stimulate the aVarice and to appeal to
the Cupidlty of mankind by swindlers who
are not members of the stock exchange.
Parasites in Wall Street to Blame.
1T is natural and logical that these para
sites upon the thrift and industry of the
country should locate in Wall street, as
the name is one to conjure with and cal
culated to impress the ignorant. But they
have no more business there than fleas
upon a we'll bred and we'll groomed dog.
Unfortunately the smile cannot be car
ried any further. because you can rid a
dog of undesirable tenants, while in Wall
street We cannot.
"These people use a great deal of ad-
vertising space in the very newspapers
! that condemn Wall street most severely
For example, one of the most widely ad-
vertised schemes i'm the highly respect a BILE
and religious newspapers and periodicals
between New York and Chicago, to be
| capitalized at J0OOO.Wo-a rdiculousy
low figure-and the promoters got be-
| tween five and six millions of dollars out
| of the public The concern Is now in the
hands of a receiver, who is searching
| for it's assets. while its promoters are
| living in luxury.
Only Spectators Are Stung.
The money that changes hands in spec
ulation simply passes from one set of
| spectators 10 another. Were this con-
| fined to professional operators neither