The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-06-17

been there. But she was not there any
market, which are under investi CATION
, by the federal authorities could not be
adjusted either through exchange regu.
latlons or state legislation. and that the
New York law which permits call loans
OF $4,000 or more, secured by collateral
to be made at rates higher than per
cent, should be permitted to stand as
ITS repeal would not be beneficial.
The Curb Market.
The unorganized status Of the curb
market, especially with reference to
mining shares. is discussed by the com
mittec as follows
Bitter complaints have reached us
OF frauds perpctrated upon confding
persons, who have been induced to pur-
chase mining shares because they are
quoted on the curb; these are frequent
~ advertised in newspapers and circu.
lars sent through the mails as so quoted.
Notwithstanding the lack of proper
supervision and control over the ad-
mission of securities to the privilege of
quotation, some of them are meritorious,
and In this particular the curb performs
a useful function. The existence of
the cited abuses does not, in our iudg
ment, demand the abolition of the curb
market Regulation is, however, i'm
! perative. About S5 per cent of the
business of the curb comes through the
| offlces of members Of the New York
Stock exchange, but provision of the
constitution of that exchange prohibits
ITS members from becoming members
| or, or dealing on, any other organized
stock exchange in New York Accord
lngly, the operators on the curb mar.
ket have not attempted to form an or
ganlZatlon. The attitude of the stock
exchange is therefore largely responsi-
bic for the existence of such abuses as
result from the want of organization
OF the curb market.
Some Recommendations.
"Ihe stock exchange should compel
the formulation and enforcement of
such rules as may seem proper for the
regulation of business on the curb, the
conduct of those dealing thereon, and,
particularly, for the admission of Sc
curItles TO quotation
The abuse OF advertising is gone into
at some length the committee declaring
that much of the discredit in the pub.
IIc mind attaching to Wall street is due
to frauds perpetrated by means of al
Turing advertisements.
'Papers which honestly try TO dis
tlngulsh between swindling advertise
ments and others may not in every in
port says, "but readiness to accept ad.
yertlsements which are obviously traps
for the unwary is evidence Of a moral
delinquency which should draw out the
severest public condemnation.
Another serious evil is committed
by men who give standing to promo
lions by serving as directors without
full knowledge of the affairs Of the
companies. An amendment TO the
DPnAI rOnp pDInl
that any person who advertises falsely
concerning corporation shall be guilty
of misdemeanor and that any pub
Usher OF a newspaper or other publica.
ton who fails 10 obtain from the per-
son responsible for such an advertise
ment written and signed statement |
to the effect that such person accepts |
responsibility for the same, shall be
guilty of misdemeanor.
With reference to bucket-shops, it is
recommended that a feature of the |
Massachusetts law be adopted, making
1T necessary for conviction to show only
that the bucket-shop keeper intended
the trade TO be settled by differences
and not by transfer of property 1t
Is advised also that a law be passed
providing that, so far as the transmits
slou OF continuous quotations is con
cerncd, telegraph companies shall not
be deemed common carriers, or be com
PEELED against their volition to trans
mt such quotations TO any persons; al
so, law providing that if telegraph
company has reasonable ground for be-
lieving that it is supplying quotations
to a bucket-shop, it be criminally liable
equally with the keeper of the bucket
shop.
The Commodity Exchanges.
In its report on the exchanges that
deal IN agricultural products, the COM
mlttee quotes the report of the indus
trial commission of congress in 1901,
showing that selling for future deliv-
cry, based upon forecast Of future CON
iltlons of supply and demand, is an
indispensable part of the world s com
nercial machinery, by which prices are
rs far as possible equalized throughout
,he year to the advantage of both pro- ,
iucer and consumer. The committee ,
hen saws:
Buying for future delivery causes
advances in prices; selling short tends
o restrain inordinate advances. In
zach case there must be a buyer and '
/ seller, and the intcraction of their j
radlng steadies prices.
Dealings for outsiders are usually
lpon 10 per cent margin: obviously
[ this margin were increased generally. I
ay TO 20 per cent, considerable part
II the criticism due to losses IN specu-
alton, particularly AT the the cotton cx
hange, would be eliminated.
The Produce Exchange.
The committe disapproves transac
ions IN mining shares on the produce
Exchange in the following language:
From our examination of the trad
ng IN mining stocks recently intro
uccd, we conclude that the lack of
experience of this body in this class
# business has resulted in a neglect
# proper safeguards TO the investor and
N undue incitement 10 speculative
transactions Of n gambling nature, and
hould not he tolerated on the produce
xchange,'
The Cotton Exchange.
The New York Cotton exchange is
escrihed as the ''world' Is clearing
ouso for the staple Selling for future