The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-07-30
WAN 7 REFORM On
LOCAL EXCHANGE
One Patron Believes Complete
Reports Should Be Made
to Exchange.
WOULD GIVE PUBLIC
MORE PROTECTION
Listing Contract Provides for
This, but Ability to Enforce
Doubtful.

1t has been suggested by one who. ha:
been q liberal patron OF the Salt Lake
Stock and Mining exchange In the past
thai reports should % be demanded al
whose issues are listed and dealt In
There is no need TO rccte the instances
he mentions where customers OF brokers
locally have lost money by dealing III
stocks which they would not have
touched had they been In possession oi
authoritative information as TO COM
pany affairs.
Had I known that the two OF three
stocks In which ] dealt recently for In
vestment purposes represented companies
In the bad condition that eventually
became known, ! certainly would have
refused TO touch them he stated. THE
members OF the exchange owe II to the
public. 10 whom they look for their busi
ness, to get adequate information for
their protection. II there is no clause
In the listing contract providing for re-
ports at stated Intervals, there should
unlisted issues dealt In on the local ex-
change which are under no contractual
obligations. Unless reports are forth
coming from those when demanded, they
should not be dealt In at all"
Why Not Practicable.
,ion # it were possible" said one mem
bcr Of the exchange, when shown the
above statement. "But IL Is very doubt
ful II the exchange is strong enough to
Should the refusal to comply with the
request OF the exchange be punished by
withdrawing from the listed division the
offending Issues. there are great many
companies with active stocks which
would let H. go at that. Many compa MES
do. not care whether their stocks are
and their interests from this Viewpoint
should be protected
1T is difficult matter TO solve. Stock
holders have the right to demand infor-
tn,,
seldom have the patience. money or a
pense OF this examination. either per
sonally or by the aid OF experts. That
statements Is certain. for the contract
Of listing expressly provides for this.
fear we are far from perfect but there
are some things we cannot do, and one.
I fear, Is the demand for report from
a company at stated intervals"
Contract Entered Into.
The contract entered into when a stock
is listed on the local exchange reads as
1-Evidence Of good faith must be
shown In the matter Of ownership, de-
velopment and progress OF work.
2-The company. should have a good
fund either treasury stock or
cash. or both.
3-The committee reserves the right
10 take the stock off the board on ten
lays notice whenever, IN the Judgment
of good faith or evidences Of fraud arc
shown II the stock Is removed by the
committee In less than six months. the
listing fee will be returned.
4-Thc committee also reserves the
light to take the stock off the board
whenever work has been discontinued at
he property, until such time as the work
nay be resumed,
THE company must be willing TO
submit report OF its financial condition
md the physical condition of the mine.
,r give such reasonable information as
nay be called for by the committee
The terms and conditions of the ex-
,hange are accepted. and we agree to
abide by the rules and regulations OF the
exchange.