Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1912-12-13
STOCK GAMBLING
Up To EXCHANGE
SAYS WITNESS
Chairman of Law Committee of
New York Pit Admits 1t Can
Stop Manipulation.

.
Eating committee today that the eX-
.a.nee could prevent both short selling
and manipulation if it saw fit TO do -
7... witness said that he did not per
..,.Ia, approve Of short selling and
len ccluered by Samuel Untermeyer
.a.nsel Tor the committee. as to why he
Aad never urged this reform in his so
odd years Of experience on the stock
.,-ebange. he said he was not reading
moral lectures to the other people Of
lie community"
Cntermeyer asked him if he knew
fine average daily transactions OF the
-yehange, and he said he did not.
"Did your committee supply the
HHg1es commission with data on these
-.ansartions?" asked Untermeyer
.I don't remember. We gave them
ME data" said Sturgis
I-utermeyer pointed out that tne fig
rres he had showed about an avera ge|
of 10000 shares yearly. Sturgis was
not sule that was right.
ON all these transactions % cents a
Ha.e commission was paid to brokers.
was it not?' asked Unterneyer
"Not on all of them. some OF the
cookers may have been acting for them
slyes. Somewhere between one-quar-
.4r and one-haif Of the dealings We're
,.obably for brokers"
About Brokers Rates.
Stuugis said there We're about 400 ac-
live members on the exchange on busy
DAYS. He admitted that about one
third of the active business was from
brokers'. He said the rate Of commits
SONS varied a good deal, only 81 for 100
shares being paid in commissions on
The floor business. The varying sched-
ule Of commission rates was regulated
bv the exchange. Where the outside
bubble was on both sides of the trans
actions tax OF % cents a share had 10
ne paid 10 brokers.
us it not fact that the price of
securities has no effect on the size of
che commissioner
Excepting mining stock below $40,
pa value, that is true" said sturgis
Cutermeyer then took up short sell
ing.
In the main, short selling is specu
lative," said Surtgis.
short selling is practically sellins
something you haven't got isn't it?'
asked Unteuneyer
Yes" said the witness.
Is it legitimate"
IF think so"
Panic Makes Mo Difference
IF panic is raging, do you think
its Tight to sell stocks short TO depresS
tne market"
z do not think it's wrong. 1t ISL
protection for men who have been
caught with a lot Of long securities
and they are able to repair their cred
igs under such conditions"
Scurgis said his idea Of tine deteu-
-ibity Of short selling was based on
The financial necessity of the person en-
-agel in such TRANSACTION He said chat
-uos, selling in q normal market was
question OF morals lie did not per
-oualIy approve Of it under certain con
.jtious. ana said he mad never sold a
.Aare of stock short in his life.
Could YOU not regulate short sell
l0go"
I'll would not be practicable"
Wouldn't the brokers' books show
lAe TRANSACTIONS"
Some times"
Ultimately Sturgis admitted the
brokers' books in New York would re
veal all short sales. The exchange. byI
periodic Avayoinatione Of tha books
'.l.,l5 a., ~ s,.4,,,+ ,e .,,,or+ salas
'l'0 ''"u ouI .ile eNte''' u 7''''
ana manipulation.
He Never Met Issue.
IF the exchange wanted to forbid
'''1 -
20
40 SO
The exchange has never met that
issue"
..l1.,,.,.. ,.,,,, .,..,,,., a., ..eo,,,, ~
10. -, 80. ~ ,.,,,,1 ,,,.,,.,1 lao
"'l my uuIN " ca"
lures TO the other people OF lhe com
uunity"
I-ntermeye, reviewed the arguments
nj. f,,-o. 90 ,,,.,,.t ..l1i,,,,. nc 3, batancing
80 oo'''''F7 ~, .,,r,,.
Jack to the question OF gambling,
Don't t,o,1 t},ipl, +bA moral obliauv