New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-14
Witnesses Declare Its Domi.
nance in Financial Affairs
Extends to Engraving
of Securities.
mo DUTY TOWARD PUBLIC"
Two Governors Admit to Money
Trust Committee That Part
of It's Transactions Are
"of a Gambling
Nature"
From The Tribune Bureau. J

From The Tribune Bureau.
Washington, Dec. 13.-That the dom
nance of the New York Stock Ex-
change in financial transactions reaches
even to the engraving OF the stocks and
bonds listed on the exchange was one
Of the bits OF testimony obtained to-
day by the House money trust in
vestigating committee. Previously the
/ Pujo committee had learned that the
exchange took no cognizance OF short
selling" and other forms Of gambling
| by individual members. and hence had
not officially disapproved such prsc-
! tees.
Two OF the pioneer governors OF the
exchange, Frank *. Sturgis and Ru-
dolph Keppler. acknowledged that
/ transactions which partook OF gam
bling nature were INDUCED in.
Il would not deny that part Of tho
transactions are Of gambling na =
ture," said Mr.. Keppler, while Mr.
Sturgis remarked: at is not my duty
to urge moral reform upon the COM
munity."
The revelations concerning the EN-
craving monopoly" fostered by the eX-
change were made by several wit
nesses. chief among them being George
| a. Field. Of the : ew York Bank Note
| Company, a concern not favored by
the exchange. II was charged that the
American Bank Note Company, in
which J. p Morgan is a large stock
holder. prints all the stocks and bonds
listed on the exchange at prices mucn
higher than those demanded by other
companies, and IL the certificates are
not made by this company the eX-
change refuses TO recognize them.
New York City Bonds Excluded
Air. Field testified that this discrimi-
nation had existed for years and that
within the last six months the eX-
change had refused TO list millions ~
dollars OF the bonds of the City OF New
York and the State of Rhode Island
because they were engraved by the
New York Bank Note Company.
The money trust hearing was ad
journed late to-day until Monday.
Samuel Untermyer, counsel for the
committee. intimated he WAS not
through with the Stock Exchange feat
ure Of the money trust and that this
subject would engage the attention OF
the committee next week.
Mr.. Untermyer tried 10 draw from
Mr.. Sturgis to-day an estimate of the
amount Of business annually done on
the New York Stock Exchange, but was
unsuccessful. The lawyer read from
the answers furnished by the exchange
TO questions Of the Hughes coYmission
an estimate OF yearly business amount
ing to 1876, 100000 shares Of stock Mr..
Stureis said he believed the figures TO
be about right.
Now. on that $4,000 900 shares the
brokers doing the trading receive 20
cents a share in commission, 121. cents
ON each side of the transaction. do they
not?" asked Mr.. Untermyer.
NO. because some OF that specula-
ton Is by brokers for themselves, and
on that there is no commission" an
s,yered Mr.. Sturgis. who added that
about one-thirC OF the trading was done
by brokers
"Then about 131 900, 900 OF shares are
bought and sold by the public
Yes, about that
Mr.. Sturgis said there were four or
FIVE hundred active brokers oh the ex-
change. Commissions were charged on
IN. mar value Of stock without regard
10 the market price.
Explains "short Selling
Mr.. Untermyer took up the question
OF short sales. The witness explained
that short selling was the practice
of sailing stock not owned by the seller,
in order TO buy II in later at lower
price.
"Tbe object is 10 make money on
break in the market by selling what
Won have not got, isn't that So?
Yes" replied Mr.. sturgis,
Mr.. Sturgis said he believed it proper
for a broker in times of panic to pro-
tect himself by short sales, II he were
holding another line OF stock for which
there was no market.
"Do YOU believe short selling justifia-
ble i'm a normal market?
THAT is a question between every
man and his own conscience
do you personally approve snort
selling in a normal market"
PERSONALLY. | do not
"The Stock Exchange does not dis
courage short selling
an takes no position in the matter.
Has the exchange ever undertaken
10 promulgate a regulation against
short selling
No"
Would not such regulation be as
practicable as a regulation fixing the
rate OF commissions
Mr.. Sturgis said il would be fnpossi-
Bile to differentiate between long and
short stocks on a brokers books. He
never had urged such regulation among
his fellow members OF the governing
Il ..ls.