New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-13

solidated Exchange" said M. Helm, ana
Mr.. Untermyer read into the record the
rule
Mr.. Helm said his brokers on the STOCK
Exchange forced him to close out MIS- &C
count, despite an effort to fight the RUE
In the courts. He finally wrote 10 h'e
Stock Exchange brokers, setting forth that
he was no longer connected with the oon,
solidated Exchange, and that he wouiu
become nominally an inactive" MEMBER
Some time later he was forced to ciose
out his account, and all enorts 10 ops"
another, he said, were futile.
Are there a great many securlles oi
interstate industries which can be ooush'
and sold only on the New York STOCK
Exchange?" asked Mr.. Untermyer.
Eyes"
IF a Consolidated Exchange member
owns such stock or bonds then ne cannot
sell them in any market"
"Only by trading under cover" an
swered Mr.. Helm.
The opinion OF the New York state su-
preme Court UNFOLDING the STOCK Elk
change rule In the suit brought by Mr.
Helm was put In the record.
Miguel z. de Aguers, president OF tne
Consolidated Exchange, testified that sew
eral transfer offices refused to accept the
guarantee Of the Consolidated Exchanse
or its members. and gave the FOLLOWING
list: The Pennsylvania Railroad. the
Lehigh Valley, the Atchison. Topeka q
Santa Fe. the United States Steel Cor
poration. Harvey Fisk & Sons, the BANK
ers Trust Company. the Manhattan trust
Company and the Guaranty Trust Com
pany.
Under the present circumstances. SAD
Mr.. de Aguers, business on our exchange
is badly hampered. To properly transfer
stock sold on our exchange these corpo-
rations demand that the certificate OF
stock be accompanied by a notarial Ger,
tificate proving the identity OF the holder.
We contend that these concerns are un1
fair toward their own stockholders be-
cause they try to force them To. sell their
stock In one market only. A mans guar
antee is not good while he is on our ex-
change. but II he buys seat on the Ne"
York Stock Exchange he Immediately is
good. although he has less money than
he had before, by the amount he paid
for his seat"
Curb Market Restricted.
Maurice Obers. a Consolidated Exchange
broker. produced a letter from Beers q
Owens, a New York Stock Exchange bro
kerage house. dated May "a, 1903. The
writer's declined TO do any further busi-
ness with Obers and also declined to act
for a customer sent to them by Obers.
Mr.. Obers said that when the curl"
market was organized he was forced to
desert his business on the curb because
the rules adopted at tho instigaton OF
the New York Stock Exchange" prohio-
tied any curb market dealer from dealing
in any other exchange except the New
York Stock Exchange.
Lawrence ]. Dietz and r. M. Lemis, or
the Consolidated Exchange. corroborated
the general testimony as to the relations
OF the New York Stock Exchange and
the Consolidated.
when Mr.. sturgis was on the stand he
said the Stock Exchange had never been
the subject Of legislative investigation.
He mentioned the Hughes commission,
which went over the operations OF the
exchange. The evidence supplied 10 the
commission. he said. was voluntary"
Reading from the answers to the
Hughes commission. Mr.. Untermyer re-
ferred 10 THE unscrupulousness and the
timldity Of certain parties in locking up
the currency" and asked. What did you
mean by THAR ..... .-.s.,
I'VE meant" answered Mr.. Sturgis.
that during the 1907 panic some banks
and trust companies. fearful OF their de-
posits, locked up their money In their
vaults far IN excess OF their reserve,
keeping Il out OF circulation. where II
belonged"