Watertown leader. [volume] (Watertown, Jefferson County, Wis.) 1909-1911, 1909-06-18
STOCK TRADING Is
DECLARED LAWFUL
THE HUGHES COMMITTEE De
CLARES SPECULATION TENDS
TO STEADY PRICES.
SHORT SELLING Is UPHELD,
See No Reason for Prohibiting Margin
Deals, but Criticises Gambling
on the Curb.
MANIPULATION is ESSENTIAL,


NEW AOkk, June LITTLE report of
the committee appoiutcd by Gnv lIv,rl,,.
m in,-cs+;,r,t, ,,,,,..,,l, +i, :; -.
and rnmnSnJitiay md ~, ~. :, y "a. t'''',
nsol in lo,iin,r tl,.,,;,,
-, - I''''uS p""I'I
W euIleSoaS night. Inc New A"rN Stock.
the Consolidated Stock, the Cotton. the
Produce the Coffee. the Nferrantila and
tba Natal n>,,b,p.os md a., ~, -,
I.ot ,,,o.,, ;,,,,,,ti,r7t.,.I M -.
'''' e'''S'''u' """ l'0"''''''1u"-
llollS LOOKING 10 Improvement Of existing
conditions were made. The most drastic
finding is that affecting tha Mercantile
and Metal exchanges. aS follows; ..lru-
der present conditions we ore of thn
opinion that The NIrrrontila and Net,I
exchanges do actual harm tn nrodn,,,rs
and consumers. and that tbeir charters
should he repealed
Concerning speculation i'm general the
committee declares tbot IN snInn firm !,
is Il necessary incidenr If nroImrTiys
operations and that il tcnds ~ stS1G\
prices
The committee makes M ,,rcso,,t,,,o,+
against short srIlin~ hut dnai,r,a tLo
tendency of such selling * f. StaSJy
prices 1t is recommended tb,t tina min
mum margin should ha % nor cont
H. NJ,
|. haAn FedIeu III REFORMS.
Taking up the New York Stock ey.
4.
on is referred TO rs making If DrohabN
the most important financial institution
III the world While deprecating the
buying by Inexperienced persons who
act on fins or take Hyers" the conn
mlttee says II is unable to see how the
n,no, No 'G onSn 10y iuM between
H. f,.,,,, i -; I Pi' 80,
tii Wiii t I i; u1eu a. ."Tn
,,ta. ,,',t7I Ha"iutVI "Sain1' .lo
nionn,, ,,.or ,ro ,,,,,,1 ';
pr,rn,', l'0"ei Nv e. iileihpelS "iu u''i'
..pmr,.l,.,,i,,r ,,,,,,,.iti >,I I,,.,; 80
lamitin,otn - t7,,nea,tia,, % = ,',,r1h,,, ,,f
am. mtbnT. nrnnn,,t, ~, Win
mani - dfarini ;; 80, ~, -, -; t"s
w thorofor, ~, ,o,, iI.I,,t
ever for rocon,nonJina tIa ra,j,,,,I
,I,,, o,r,t',I tit ~ Laut."i
hn n7ob ;I;fed IN rfo,n ,, a. a. n
menIina lagisIotinp we moo ,,nnu Ill
brokers IN Iisrourome snelnI,tinn man
,,,,,lIi ,,,,r,,iDi - 'i''''
w have haan st,onnI,- rroal n ..d-
wise the nrobihitinp or iin;toti1n of rbnrt
sales saws Tho rennrt W. do 1,nf
think that II * N.,.ono to ,,rna fo ,,II
snmatbing thot onn Jnas MT nov ms
sass Lnt oyne,ts to nhtaip Ia+ar >hart
.,oiInr. nJa,,.o, ~ oiont 80 i,,
nrices seem high in order to soil IND
times when nricps seem low in order tn
Inv thoi,. ohtio,, in hn+b ,aca, snrI-i,,.r
to Iasan ,d,ancas and ,Iiminich dnn,inns
If mice In otba,. ,yords sLnrt .aIi,n,y
tandS TO ,1rndmcn standinasy in ,,ri,.el
which * an ,dyautnDe to the .,or,rnunI,
ty"
,,.. r,,
manipulation Essential
Manipulation of prices is divided by
the committee into two classes; first,
that which is rcsorted to for the purpose
of making Il market for issues of new
haT NUhi 10,
designed to serve merely speculative pur-
poses The report then says:
The first kind of manipulation is es-
sential to the organization ami carving
through of important enterprises.
The second kind of manipulation has
for its object either the creation of high
prices for Darticular stocks in order to
49, ,,,Il;, ~, I,,,,.,,.,