Bisbee daily review., 1909-06-18
INVESTIGATORS TELL
 Ev|Ls0FsTOckTRAD|NG
(Continued from First Page,

Continued from First Page)
 lose" As to the character of the transactions the~ommittee declares it IS unquestionable that only small part Of them is of investment charac- ter; substantial part may be char acterized as virtually gambling. Yet we' are unable to see how the state could distinguish by law between proper and improper transactions, since the forms and mechanisms used are identical. Rigid statutes directed against the latter would seriously in terfere with the former. The experi- ence of Germany with similar legisla- ton is Illuminating. But the Ex. change, with the plenary power over members and thsa operations, could provide correctives.
 The kind of manipulation used is undoubtedly open to serious criticism. II has for it's object either the crea. ton of high prices for particultr stocks. in order to draw in the public as buyers and to unload upon them the holdings of the operators, or to depress the prices and induce the public to sell. There hi5e been in stances of gross unjustifiable manip- ulation of securities. as in the ease Of American Ice stock. While we have been unable to discover any complete remedy short of abolishing the Stock Exchange itself we are convinced that the Exchange can pre- vent the worst forms of this great evil by exercising its influence and ]! authority over the members to pre- vent them. When continued manipu.
 lation exists it is patent to expert | enced observers
 The Curb Market
 The unorganized status Of the Curb | market, especially with reference to
 mining shares is discussed by the
 committed. as follows:
 Bitter complaints have reached us | or frauds perpetrated upon confiding persons who have been induced to | purchase mining shares because they ! are quoted on the curb; these are ire ] quently advertised in newspapers and circulars sent through the mails as so ! quoted.
 Notwithstanding the lack of prop CT supervision and control over the
 admission of securities 10 the privi- | lege of quotation. some of them are | meritorious. and in this particular the curb performs useful function. The existence of the cited abuses does ! not. in our judgment, demand the 1, abolition of the curb market
 ! Another serious evil is committed 1 by men who give standing to promo | tions by serving as directors without |, full knowledge of the affairs of the companies" An amendment to the Penal Code is recommended providing
 that any person who advertises false.
 ly concerning a corporation shall be
 guilty of misdemeanor and that any | publisher of newspaper or other publication who fails to obtain from
 the person responsible for such an ad-
 yertisement a written and signed ! statement to the effect that such per | son responsible for such an advertise, ment written and signed statement
 to the effect sthat such person ac. ' cepts responsibility for the same shall
 be guilty of misdemeauor.
 With reference to bucket shops 1t ia
 recommended that 8 feature of the
 Massachusetts law be adoDted making
 it necessary for conviction to show
 only that the bucketshoD keeper in. Jtended the trade to be settled by diff
 ferences and not by transfer of prop
 erty. It Is advised also that a law
 be passed providing that, so far as the transmission os continuous quota
 tions is concerned, telegraph compan ies shall not be deemed common car riers, or be compelled against their
 volition to transmit such quotations
 to any persons: also a law providing
 that fl telegraph company has req
 sonable ground for believing that it is
 supplying quotations to bucket shop :. if be criminally liable equally witt
 the keeper Of the bucket shop.