Daily press. [volume] (Newport News, Va.) 1896-current, 1909-06-20

? Of brokers, according to the commt
: tee Ii is suggested that the book
, | Of members of the Exchange shoult
}. be subject to periodical examination
1 under rules to be prescribed by tB'
5 Exchange. IL is declared further ina
when a broker sells a customers Sc
curities for his own benefit, he should
. be held guilty of larceny and stat
ute to the effect Is recommended. II
is set forth also that rules should be
made TO prevent dealing for any clerk
or subordinate employee OF banR
or other moneyed corporation. More
stringent requirements for the listlns
of securities on the Stock Exchange
are advocated, among them that the
Exchange should enact statement
showing how much OF the stock or the
company has been issued for cash and
also showing what commission mas
been paid to the promoters. The un-
listed department. except for temper
ary issues. should be aboilshed. says
the committee IL is in the unlisted
I department that stocks of certain com
panies are traded in. the passage OF
a statute is advocated promising that
i'm case any purchase or sale By a
broker was not actual and bone fide
the customer shall recover three
times the amount of the loss he sus-
! tanned thereby. Preservation OF the
sheets Of the Exchange Clearing
! House for six years is recommended
Ii is also recommended that trading
on the Exchange be done on the basis
CT reasonable small unit. say 100
shares of stock and that bidder fol
more than 100 shares be required Il
accept offers in the 100 share units
| This, il is held. would tend to pre-
vent matched orders.
i The committee does not favor the
incorporation Of the Stock exchange
holdingthat under existing conditions.
being voluntary organization, 1t has
almost unlimited power over the con
duct of its members, and il can sub
ject them to instant discipline for
wrongdoing. which 1t sould not exer-
else lis summary manner If
ii were an incorporated body
This committee. in refraining from
advising the incorporation of the
| Exchange. does so in the expec-
tation that the Exchange will in
the future take full advantage of
the powers conferred upon 1t by its
voluntary organization. and will be
active in preventing wrongdoing such
as has occurred in the past. Then We
believe that there will be no serious
nrfffctc,,, ~ hn q in
corpcrated. II, however, wrOngdoing
recurs. and IL should appear to the
public at large that the Exchange has
been deTelict in exerting its powers
and authority to prevent il. we be
lieve that the public will insist upon
the incorporation of the Exchange and
It's subsection to State authority and
supervision"
Investigation shows that on one &C
tive day 50 per cent OF the total trans
actions apparently originated in New
York CITY and 45 per cent in other
localities.
The Consolidated Stock Exchange.
The committee describes the Consol-
idated Exchange as secondary
market of no mean proportions its
1 rcAtr 0fCA0kAt atOttt Hcs'Nfsf''
shares per annum. OF this Exchange
the Committee says;
I be fact that its members make a
speciality of broken lots namely
transactions in shares less than the
lee unit. is used as ground for the
claim that II is q serviceable insti-
tuticn for investors OF relatively
small means. But Il is obvious thai
its utility as a provider Of capital for
enterprises is exceedingly limited
and that il affords facilities for the
most injurious form q speculation
that which attracts persons Of small
means"
coonste Subjects.
Under the heading ~'Cognaie Sub
jects~ the committee discusses Hold
ing Companies. Receivership. the
Money Market and the Usury Law u
suggests that stockholders Of a sub.
siiiary company should have the right
20 examine the books 81 the holding
company: that the courts might place q
short-timc limitation on rcceivcrshirs.
. that the questions concerning the
money market. which are under in-
veStigation by the Federal authorities
could net be adjusted either through
Exchange regulation or state Legs
laiion. and that the New York Law
which permits cali loans % 5000 or
mere. secured ~ collateral. 70 BE-
made at rates higher than per cent
, should BE- permitted % stand A. ~
lrcpeai would not be beneficial.
Tire Curb Market.
The uncrEauized status 81 the Curt
Market. especially with reference o.
mining shares IL discussed By TIE
COMMITTEES. a. follows.
Ritter complaints have reached rs
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