Perth Amboy evening news., 1912-12-14
SHORT SALES
TO BE BARRED
Probers in Wall Street Me.
thods May Act.

Washington, Dec. 14.-These radical
suggestions Of reform for the New
York Stock Exchange were tentatively
offered by the Pujo investigating COM
mittee:
F1rst.-That members Of the big board
be prohibited from executing orders
for important operators like James H.
Keene, who are known to have manipu-
lated the market.
Second.-That the New York Stock
Exchange prohibit short sales Of stock.
Third.-That the exchange compel the
York exchange clearing house.
Members OF the committee seemed to
be under the impression that 1t would
be as feasible for the Stock Exchange
to prevent Its members from doing
business for manipulators Ike Keene
as it is to apply the regulation against
any member executing orders for a
member of the Consolidated Exchange;
also the committees counsel apparent
ly believes that the enforced presenta-
ton Of stock certificates at the clearing
house. would materially reduce specula-
ton. All Of these suggestions were
met by officers Of the exchange with
the argument that they would be i'm
practicable.
A large part Of the proceedings were
taken up with the consideration of the
ethics of the short sale. Frank c.
sturgis and Rudolph Keppler, both for
mer presidents of the Exchange and
now members of the board Of COVER
nors, gave their views on so called
manipulation in the stock market and
defended the methods and practices on
the big board.
Sturais Never Was "Short.n
Mr.. Sturgis could imagine circum-
stances under which it was perfectly
justihable to go short Of the market,
but he had never in his life sold a share
In this way for himself, and he did not
approve Of the practice when the mar
ket was in normal condition. He init
mated that it was largely a gamble"
but admitted that the New York Stock
| Exchange has never seriously consid
cred the proposition Of %forbidding 1t.
MI. Keppler thought that manipula'
ton was legitimate when the rules OF
the exchange were observed and when
| 1t did not pass the bounds Of reason
ableness. The test OF reason that be
would apply seemed to depend on the
wealth Of the manipulation and the
length Of his pocketbook,
The committee tried to obtain from
Harry Content, who has the reputa
| ton Of executing the biggest orders OF
the street and of representing some o
the most important trade3. how thu
! feat of artificial realizing and depress
Ing price levels was accomplished.
Mr.. Content smiled and shook hi
head. He knew very little about suel
things.
Dividends Shy at Times.
do you know what is meant h.
manipulation of stocks?" asked Mr.
Untermeyer Of Mr.. Content with
smile.
Mr.. Content said that it was dom
differently in different cases.
MI. SoulCLl OuDtC NACluCl tijcl
was very much manipulation in non
dividend paying stocks. Certainly Their
isn't at the present time.
do you know that a prolific sourc
Of speculation on dividend payini
stocks on rumors Of coming div
dends?"
Eyes"
SIS 1t on rumors of dividends tina
do Gomez"
Probably"
"Some times they do not materia
ize."
'That happens"
Mr.. Content acknowledged that t
depress the market the brokers sol
short and kept on selling until tn
market was down as far as it woul
go. Then he covered.
But not always at a profit" sal
Nj. Content with a smile.
Look at the "prices Of things a
advertised in today's paper. If yo'
know values, and have a care for you
purse, these prices will interest you.