New-York tribune., 1909-06-18
ALL PRAISE REPORT
WILL CAUSE REFORMS.
Stock Exchange HW Appoint Com
,n;ttec to Consider Findings.


:. ,,,5erstood. Will at its meeting next Wednes-
he last before the summer recess appoint
.5.l committee to consider the recommendations
ssc+fnc the exchange which are contained in the
- If Tie so-caIled committee on Wall Street,
.,4sra5 -4sterday- President Thomas Of the
- Exchange sailed for Europe on Wednesday.
- !, his absence no official statement of the
Use 70 be pursued by the exchange could be had
S,s-eraav The attitude OF the governing commit
&C. toward the suggestions Of the White committee,
however. was expressed by Ernest Groesoeck one
,s the governors. who said:
.,r,zinr &c the character Of the committee ap-
,o.,+e5 BY Governor Hughes. the governing com
,;-,4e Of the New York Stock Exchange will give
+s most careful attention to all Of its suggestions.
with view 10 correcting abuses which may exist
- -he be-t ability.
The recommendations which aroused most dis
cpssion among the members Of the Stock Exchange
.-e those relating the amount Of margin 10 be
-eouire5 from customers and 10 branch Offices. The
General opinion seemed 70 be adverse 10 the PROPOSE
-icr % raise the margin level from 10 per cent
7--ich IS now the rule in most cases, to not less
-ban % Per cent. and sentiment was also in favor
Of continuing the system OF branch of11oes' al
-br,1ch il was admitted that abuses existed and
TIA, stricter supervision by the governing com
rrirtee might he desirable.
Following are the views Of some of the Stock
Exchange members and houses:
c L BARNEY & co, The feature Of the re
-o-r is that il in 10 wise sensational, The com
1nttees stand on margins, futures and SHORT sell
official expression Of the S1reet
opinion in regard 70 me lndlSI'elSao %
,-s-e sreClla-ion. The periodical examination oI
.ers7 before and The right Of examination is eK-
crossed Al present whenever such a co'lrSt i
deemed advisable The abolition Of bTa9cn oiI;reS
would nei -esSIl - - ,b ~ -nrtafn class of specuIa-
nlL 49, 49,, 5e .Ir5esirahie Most speculation on
re rar7 a women ! conducted through hranch
o@oes The recommendation Of 20 per cent
;',,, oI margin fs conservative hut not eNces-
eiyelv 50 The ma jor'fy Of the larger hVuSes -.
oure an average margin as large as lla' a' ''7
--aseur time. .,o-,
I-arsb t-r6kerace Offices that is matter wrIll 4-
a1 : ss much as The head Offices. and 70 1oT5na
ir~rch Offices is entirely unneceSssrH Of
- - are usually opened for the conNei
sor,ers as are hank and trust COMPANY 9Ldli' 17
As he % per cent naarl ] "a 20 % 7er cent on
s~.si- r~ansactions The concerns that @ 1the az az
Colnts without margins or on very Sllin b6 % aTrv
snail lots Of stock on 5 .o7Ie Of that class
s7e.ulation induces clerks ana PeGtIe Psg,~a=-z 81
- speculate and often leads 10 dlshoheSE e-ood
The commissioners report oinerWlsSS i - I,-I7oIe-
I'D ,,orservative and Will doubtless have , NloLt
sone effect generally upon Wall stree +arsiT
that II WolL - S,9rs vii ind that all reputable
s9r 3i I-ss @ Peo4ie GTfi viii e wiling extend 70 him
heping hand in order 70 correct e any he re-
port of the investigating committee TO ne Wi
tive and conducive 10 the hest me M tTcb S off7ces
Street The recomInendation tnat an & nIa5,r N a5
= &ew York City be abolished Is a good one SIu m
ne Poet S5 t-xHl.age Of the books OF its members
should prove no hardship 10 the houses, = Co
, n 49, ! = Il IN city ike New York properly
5-.d 6[eT- y-ifbon the sale Of liquor etc. are Of
t SoI,-enience and facility for the trade Of
TEosa who do not 20 come down 10 the !tIldL
ciaI district regard The proposal as TO ~ PEE per
No law be passed in mercantile business S WIN WIN
regard TO the amount Of eas9] ] anq f1i+fio be
placed OF margn iTanSac3dqnS G "Ilch are
PRESIDENT BADEAU Of the Consolidated
S-ock Exchange think that the report Of the
Horace White committee TO Governor Hughes
taken as a whole. conforms well with With TIE methoaS I
P4eCe PC has ever been done before The recommenda-
80 made nv the committee should bear fruit in
many Instances As to the Consolidated Stock FK,
cnange, il is organized 10 deal in small lots, ana
while speculation in such lots is possible the eN-
change offers the best place in the United States
10 small investors 70 make purchases of securities
81 the market. The commission houses Of the
Consolidated Stock Exchange handle very heavy
stocks and bonds. besides doing speculative bust
ness for their customers
Welding Ring. president Of the Produce Ex-
change when asked for his comment on the White
committees recommendation that the mining de-
partment should be abolished, said that when that
department opened the traders were mex
perenced Now however # in fair condition
and open criticism. and its conduct would in
future certainly give ground for criticism The
managers Of the exchange met yesterday, but took
no action regarding the report OF the Governors
committee.
F G. Urner vice-president Of the Mercantile
Exchange the repeal Of the charter Of which was
recommended by the White committee. said that il
stir 700 early 70 saw what action the exchange
might take The Mercantile Exchange. he said
performed q very important function. The White
committee had made only superficial examination,
and had visited the exchange or seen any OF
the members Of the quotation committee. The only
basis for It's findings was a talk given voiun-
1artly by President Dunkek the committees re
quest NJ. Urner denied that the exchange was a
close corporation. The quotation committee, ne
said. represented both receivers and buyers. More
less business was done the exchange, but
that only phase of its activities II had
large force of employees collecting information
sho, among other things. secured the figures OF
Commodities received daily in this city, which
figures posted the exchange trading floor.
statement made in behalf Of the Metal Ex-
change the repeal Of the charter Of which fnsttu-
1ion also advised by the Governors committee
says:
So far as the larger interests in the metal trade
are concerned II Is OF very little moment 10 them
whether or not the recommendations OF the NhlIts
Committee in regard 70 abrogating the c1aTteF 2i
the Metal Exchange are carried out We leei;
however that their Indictment Of tbs exchange ana
Its methods is altogether warranted , -,
II been well known for a long tlIae ulal u-e @
New York Metal Exchange has served us hjs
chiefly as a bureau of information 1t receives
posts prices Of lead, t4n. copper speiIe.,
Of the world and 70 that extent saves It's members
Of expense wnlch Wouiu De a. eli
IN securing this information individuaIly. Al Sis
known that the exchange coiieCIs am
seaina,es the most detailed and rellape s,
Of production and consumption OF n1etais' =, Ptbe1
and ana exports of SANE; ne. h0s aiGabIe IelS
Whatever may be said about the g., az
and published by the exchange 80 toi md beneft 10
tie trade and without them more ot .o,,,J he I
condition would exist in which no one tiors "onia
ali sure as exactly on Hiial paSiS
could be made.