New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-16
REVIEW AND DIGEST
A Week of Liquidation-Market
Depressed by Pujo Inquiry.


Since prosperity became marked and
it's development assured interesting
phases have been presented in the New
York stock market. For the last sew
eral weeks the market has been enig-
matical and has defied the attempts Of
traders TO make even approximate
guesses of its backward or progressive
tendency. The wars and rumors Of
wars in Continental Europe were held
responsible for the first rush of liqui-
dalton experienced in this market. and
II was generally supposed at that time
that when any Improvement should be
shown in the European situation the
market would improve. There came
period when the European outlook
grew brighter and expectations of an
early peace agreement were an
nounced. The European bourses be-
came stronger, and heavy buying or
ders from abroad were sent to this
market. But the New York stock mar
ket failed to respond. and other causes
than European troubles had to be
sought to account for the local de-
eli
came along and gave distinct evidence
of it's Importance by causing sharp
break in prices and continued liquida-
ton, from which no important recovery
has been shown. The last week, how
ever, may be designated as one suffer-
ing from money trust" activity. The
Pujo committee has been in session In
Washington, and the New York Stock
Exchange has been the particular SUBJ
ject under consideration. In the testi-
mony given there has been brought out
Street affairs that would make 1t seem
that the New York Stock Exchange is
a resort for legaliZed robbers. 10
those who know Wall Street and are
familiar with the sound investment
principles on which the New York
Stock Exchange has been built up its
faults, though recognized. do not APP
pear so discriminating. But to the peo-
pie at large, who are not familiar with
investments and with the machinery
of the Stock Exchange, the newspaper
recitals Of the testimony adduced must
have created a most unfavorable i'm
preston. Without attempting to apollo
gize for or defend the inexcusable neg
ligence Of the New York Stock Ex
change executive officers for ignoring
the violations Of the exchange rules by
some of its members, 1t is only fair to
this important institution and TO those
members who as part of ii do con-
scientiously regard it's rules and regu-
lations to attempt to refer to its use
fulness. Since its organization the
New York Stock Exchange has served
an indispensable purpose as place of
barter and exchange for American Sc
curities. For more than a century this
institution in one form or another>has
been developing, and to-day holds
position Of rank along with the Lon
don Stock Exchange and the Cont
mental bourses Of Europe.
Gradually, as the years have rolled
on and the rising necessity for better
safeguards for the public have become
its rules have been amend
ed and the exactions specified for its
members in stock transactions have be-
come more rigid. The restrictions
which have been put upon corporations,
both railroads and industrials, which
have desired to list their securities for
trading, have increased until now the
investing public is afforded great pro-
lection Every security issue accepted
by the New York Stock Exchange as
entitled to listing must pass the scru-
tiny Of experts, who carefully study the
security of each bond or
share of stock offered for trading.
When the public finds stock or bond
listed on the New York Stock Exchange
there is a feeling of confidence that 1t
has value, that the corporation or com
pany has been properly organized and
that the capitalization represented is
warranted by the assets which form
its basis. Each share of preferred or
common stock and each bond must be
so correctly worded and printed that
it will be accepted for transfer without
question in the event the purchaser de-
sires to sell all or part of his
holdings.
The facilities for raising the millions
of dollars of capital necessary for the
big railway systems and the large in
dustrial corporations could never be
provided without such an institution as
the New York Stock Exchange. AS re-
CARDS its faults, there is no defence but
they are not the faults of the ex-
change but are due to the indifference
Of men who have been responsible for
its official direction. These faults as
presented in all their aggravated enor-
nifty. in the majority of instances are
omen violations of the rules of the or
ganization.
.I1... l.