The sun., 1909-06-17
one safe summer drink.

thorties have power to conduct such an
examina ton and should do so. No faul,
can be found with the severity OF the penal
ties imposed upon dcfauling members
what is needed Is discipline before rather
than after the default.
ABOLISH THE USLIsTBD DEPARTMENT.
Much space Is given TO the requirement.
for the listing OF securities, especially II
the so-called unlisted department, in which
only meagre informal ION Of the company
condition is demanded. On the principle
that the public has right 10 know whs.
the abolition OF the unlisted department
and the fling OF more detailed statements
OF earnings and condition by companies
on the regular list.
Rum IN BRANCH OFFICES.
The complaints against the Stock Ex-
change clearing house and specialists
are dismissed as unwarranted. but the
report justifies the complaint against
branch Offices in this city, -often luxuri.
ously furnished aud sometimes equipped
with lunch rooms. cards and liquor On
this point it says
The tendency Of many OF them Is to in
crease the lure Of the ticker by the tempta-
ton Of creature comforts. appealing thus
late. The governors OF the exchan &c
inform us that they realize that some Of
these Offices have brought dscredit on the
exchange and that on certain occasions
they have used their powers to suppress
Objectionable features. II seems 10 us
that legitimate investors and speculators
might without much hardship be COM
pelled to do business at the main Offices and
that hard and fast rule against all branch
Offices in the city OF New York might well
be adopted by the exchange. In any event
we are convinced that a serious and ehec-
tive regulation OF these branch offices is
desirable.
EXCHANGE BETTER. NOT INCORPORATED.
The commission says it was strongly
urged to recommend the Incorporation
of the exchange, Its objection to such
action ia that under existing conditions.
being a voluntary organization. 1T has
almost unlimited power over the conduct
Of the members and il can subject them
to instant discipline for wrongdoing,
which it could not exercise in a summary
manner il it were an Incorporated body.
Submis ssion Of such matters to the courts
would involve delays and impair the
necessary discipline. All the evils which
might be corrected by incorporation.
on the other hand, can be removed by
cuptINlblotl vi tlC puoiiS5S ~
members and closer enforcement OF the
rules. These things the commission ex-
poets the governors TO do.
ALTRURIA ALSO sPECuLATEs,
In concluding its discussion OF the
Stock Exchange the commission notes
a tendency on the part OF the public TO
consider Wall Street and the New York
Stock Exchange as the same thing. This,
it says. il an error arising from their
location. We have taken pains 70 as
certain what proportion OF the business
transacted on the exchange is furnished
by Now York city. The only reliable
sources OF information are the books Of
the commission houses. An invesnga-
ton was made Of the transactions on the
exchange for a given day when the sales
were 500, 900 shares. The returns showed
that on that day So per cent. OF the total
transactions on the exchange apparently
originated in New York city and s per
cent. in other localities.
usURY LAW MIGHT DE REPEALED.
As cognate SUBJECTS the commission
discusses holding companies, receiver
ships. the effect Of the money market on
speculation and the usury law. II be-
lieves that limit should be put on the
powers Of holding companies and that
there should be legislation providing for
a short time limit OF receiverships. The
money market il leaves TO the Nauona!
Monetary Commission. The exception OF
call loans from the usury laws it considers
proper and makes no recommendation
upon the interest laws Of the State -un-
less it be the repeal Of the usury Law al;
together. as we believe that money VIII
inevitably seek the point Of highest re-
turn for its use. In nine States OF the
Union there are at present no usury laws.
x,,,on ,.,or,r
The commission received bitter COM
plants OF frauds perpetrated upon con-
fiding persons in the purchase Of mining
stocks in the curb market In one re-
spect, it finds. the trouble is similar to
that on the Stock Exchange, and it recon-
mends that tho curb be made a regularly
established market. with its authorities
exercising rigid supervision on securities
traded. About IS per cent. OF the bust
ness OF the curb, it says. is supplied by
Stock Exchange housee. and It recon-
mends that the Stock Exchange take it
upon itself to put through the necessary
reforms The Stock Exchange several
weeks ago appointed a committee for that
purpose.
cARDENIo p. KINGS SHOULD NOT BE AL
LOWED TO ADVENTIST.
In regard to mining stocks and some
other curb shares the commission hlds an
even greater evil in the advertisement Of
fraudulent concerns in the newspapers.
1t notes that many newspapers refuse
such advertisements, but believes that
the rule should be genera and enforced
by statute. Tipsters cards should also
be excluded from the press. The report
suggests this legislation:
For the regulation OF the advertising
evils, including the vicious "tipster's-
cards, We recommend an amendment to the
Penal Code to provide that any person
who advertises In the public press or other
wise. or publishes, distributes or mails
any prospectus. circular or other state.
ment In regard to the value OF any stock,
bonds or other securities. or In regard to