The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1912-12-13
Untermeyer Applies the ProEe
Proposes to Reveal Nor
ais" Of t h e Market
Manipulation Game
WIN. ROCKEFELLER Is
INDUCED TO APPEAR
Archbold Kindly Comes to the
Rescue of the Subpoena
Server Sturais on the
Stand Again
Telegram By United Prass.

Telegram BY United Prass.
Washington, Dec. l3.E-It became
known today that John b. ArchboId
Of the Standard Oil company assumed
tha role of an amateur subpoena serv-
e. for the money trust Committee in
conferring with Willam Rockefeller
and advising him to appear before the
committee or give his deposition.
The sergeant at arms tried for days
to serve Rockefeller without success.
Archbold then volunteered to help.
The examination Of F. X. Sturgis,
former president Of the New York
stock exchange was resumed today.
Untermeyer proposed to 90 deeper in-
to the morals Of the manipulation
on Wall street
sturgis said aboGt 100000, 900 shares
Of stock were exchanged annually on
the New York exchange. He explain
ed Short selling saying the COM
monest kind was purely speculative.
That's where a man is selling some
thing he hasn't got and expecting to
buy it later at a low price," asked Tn.
termeyer and sturgis said that was
correct
untermeyer asked if he did not think
this short Bellias would make q panic
worse if one were raging and sturgis
said it might. but SELF preservation
is the first law Of nature.g he said,
and he thought this practice was de-
fensible.
The examination of Mr. sturgis by
Mr. untermeyer. counsel for the gov.
errment, bristled with technical dis.
cussions and involved disgressions.
MI sArgis at times insisted on
lengthy examinations IN answering
questions and once flatly declined to
answer His counsel John G. Mil
burn, interfered TO preserve the calm
and dignity Of the occasion.
The testimony Of Mr. Sturgis
brought out that the membership Of
the stock exchange has not been In.
creased since 1889, when it was fixed
at ll0o Since then the business done
and the securities listed on the ex-
change have increased about fifty
times over
Mr. sturgis declared an increase in
membership was unnecessary for the
present membership was well able to
handle the publies business.
In dozen recent failures. Mr.. stur,
gs admitted, stock exchange ho ses
had carried with them stock owned
IN part by their customers but ny.
potheoated by the brokers for more
than the real ownership Of tue broker
In such cases the proceeds of sales al
! bankrupt brokers sent in on the goes
it was explained, not to his customers
but to his creditors inside the ex
change. Mr.. surgis thought that wa.
fair and just as it was a regulation
subscribed to BY the members in th,
exchange and by the public.
t Stock exchange brokers usually usi
The stock owned in part By their Gus
T toners as collateral to support thsi
s own deals, Mr.. sturgis said, rehy
n pothecated for a greater amount thu
z is reported in the bet of the custone
on the stock. He added that the gos
2. ernors OF the stock exchange woul
& welcome any suggestion that woul
IS put a stop to the practice. He dis
agreed with a scheme proposed b
MI Untermeyer that would fore
brokers to mark on loan envelopes
" containing their collateral the amour
: for which they were already held 9
i security by the brokers TINT the ban
i might make its loan to tho broker 0
.e that basis. This scheme, Sir. Sturg
u contended, would entail an almost pr
n. hlbitive amount OF bookkeeping
I'd Mr.. sturgis' through a grllling d
be tailed examination, insisted that q
is stock exchange could not prevent II
IA. lpWulasion OF tie market By pools ai
eA in'ndleates He satl they could a
ae so behind a transaction 20 dlscos
sellers