The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-06-18
HUGHES COMMITTEE REPORT.

The most Illuminating report ever
made on the operations of the various
exchanges operating in New York City
is that made by the commission ap-
pointed by Governor Hughes to inves-
tigate them. A full abstract of this re-
port was carried in the dispatches in
yesterday mornings Tribune
In general it discountenances any
legislative effort TO stop ''short" sell
ing, considering the various forces as
equalizing tendencies in the mark ct
The ''long" Is held down by the
'short. y and SO more stable prices are
made To rule; and the experiences of
New York and Of Germany. in fruit
less attempts to stop speculation are
cited in support of the conclusions of
the committee that it is best not 10
interfere by legislation.
There are some of the so-called cx-
changes, however. that came under ex-
plicit condemnation, because they do
not represent actual conditions nor deal
with actual values; but proceed on an
arbitrary or fictitious basis On the
Mercantile Exchange, there are some
desultory operations in so-callcd fu-
ture contracts in butter and eggs but
quotations are made by "A committee.
'That committee, - the report con.
tinues, els actually close corporation
of the buyers of butter and eggs, and
the prices really represent their views
rs to rates al which the trade gcner-
ally should be ready to buy from the
farmers and country dealers -
Similar deception is practiced on the
Metal Exchange. GIN spite of the .ap,
parent activity Of dealings IL this or.
ganization in published market re-
ports, - says the committee. ''thcrc are
no actual sales on the floor of the
Metal Exchange. and VIC are assured
that there have been none for several
years Prices arc, however, manipu-
lated up and down by quotation com
mittec of three, chosen annually, who
represent the great metal selling
agencies AS their interest may appear,
affordng facilities for fixing prices on
large contracts, mainly for the profit of
n small clique, embracing. however,
some of the largest interests in the
metal trade
The fact that such committee thus
acted, in wholly irresponsible WAY,
and had the metal quotations in it's
hands, arbitrarily. and with the power
TO fix prices without regard to the ac-
tual value, or the market, has long been
known. and has frequently been pro
tested against here, Utah has often
been the sufferer in this arbitrary fix
ing of prices. But there has been no
remedy. This committee. however, of
fers remedy, in the following para
graph:
These practices result in deceiying
buyers and sellers. Tho making and
publishing of quotations for commodities
or securities b. groups OF men calling
themselves an exchange, or by any other
similar title. whether Incorporated or not
should ho prohibited hy law. where such
quotations do not fairly and truthfuily
represent any bona iido transactions on
such exchanges Under present condi-
] tions. We are of the opiIrlon that the ncr-
camille and metal exchanges do actual
| harm 10 producers and consumers. and
that their charters should be repealed.
The report is most Illuminating one
IL goes TO tho root Of ali the dealings
on all the boards or exchanges Il shows
the real effect OF the stock transac-
tons. awarding quittance or blame ms
the fact or sound conclusions war.
rant. In most of the dealings, the
evils are pretty fairly offset by beDe-
fits or palliatives. But in the wholly
fictitious and often fraudulent arbi-
trary acts of committees that fix prices
| simply on their own ideas Of what the