The Birmingham age-herald., 1912-12-14
Is Individual Moral Question

 individual must settle with his own con seience.p said MT. Stursis.
 At the conclusion of his testimony MT. Sturgis put into the record part of >speech he had made before the Hughes commission, which investigated the stock exchange, and a copy of the replies made bvFthe law committee of the beard of governors Of the exchange to questions submitted by the Hughes commission.
 Samuel F. Streit of the arbitration and clearing house committee of the stock exchange told the committee that the ex- change maintains a securities clearing house, where the transactions on the floor are cleared between brokers. MT Inter meyer suggested that this clearing house might insist on having brokers deliver the numbers of certificates of stock m which they traded to the clearing house and thus prevent dealings in stock which is not owned. Mir. Streit did not favor this suggestion, and said he could tell nothing of the effect of such regulation on short sales.
 Harry Content said he had never man aged a pool for manipulating d line or stock. He asserted that the idea of form ing a pool was an old one no longer en- ployed A number of big operators worked individually, he said.
 .lVhy is that?" MT. Untermyer asked seThey find it safer to have no part ners." said MT. Content. The pool mem bers used to sell each other out
 Mir Content said he believed cross or ders of sales and purchases of the same stock were legitimate. He did not think manipulations to raise or depress the price of stock deceived the public.
 Field Is Examined
 At the afternoon session MT. Untermyer examined George A. Field, vice president of the New York Bank Note company. He testified that the exchange had ruled the work of his company o1 the stoch list. and that the bulk of the work for exchange stocks was done by the Amer ican Note company. He produced voiuminous correspondence charging the American company with monopolizing the engraving of stocks and bonds. with the aid of the stock exchange.
 A similar charge in the report of the Hughes commission was also placed in the record This phase of the inquiry, MT. Untermyer said after the hearing, was introduced at the request of Mayor Gay TOT of New York and Governor Pothier of Rhode Island. Bonds engraved by the New York company for New York city and for the state of Rhode Island, Mr. Field testified have been refused list ing on the exchange.
 John c. Atteson. secretary of the Wa bash railroad said that the first issue
 
 by the New York Bank Note company. The New York Bank Note company was later ruled off the stock exchange, and the secretary of the exchange notified the Wabash that certificates would not be accepted. Since then the Wabash stock, Mir. Atteson said, has been en- graved by the American Bank Note com = pany. as the work of the New York company would not be accepted or listed on the exchange.
 Sturgis Resumes the Stand
 Three members of the committee were on hand when the sessions began. Mr. Irntermeyer endeavored to draw from Frank K Sturgis. who took the stand, an estimate of the amount of business done on the New York Stock exchange annually, but was unsuccessful. The law Yer read from the answers furnished by the exchange to questions of the Hughes commission an estimate of yearly busi- ness amounting to sle6,0oo,00o. Mir. Sur gis said he believed the figures 10 pc about correct.
 "Now. on this basis, the brokers doing the trading receive 9 cents a share in commission, 121a cents on each side of the transaction, do they not?' Unter. meyer asked.
 NO, because some of that speculation is by brokers for themselves, and on that there is no commisslon, Sturgis answered.
 Witness said that about a third of the trading was done by brokers.
 Then about 1s1.o .o0o.oo0 shares are bought and sold by the public?" Untermeyer asked.
 About Sturgis answered.
 Witness said that there were nearly 400 or 800 active brokers on the exchange. ~ Commissions were charged on the par value of stock without regard to the mar ket price. he declared.
 Mr. Untermeyer took up the question of short sales.
 Witness explained short selling was the ~.
 (Continued on Page Seven)