Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1912-12-12
MEMBERS Of RIVAL
STOCK EXCHANGE
COMPLAIN TO
COMMITTEE
House Money Trust Investiga.
tors Listen to Plant Of
Those Who Operate on Con.
solidated.
FORCED TO SELL THEIR
SECURITIES UNDER COVER
my LesssS Wire to EyenisG HersIdl

my LEASED Wire 60 EyenisG HeraIdl
Washington, Dec. l2.-ilalf q dozen
members of IA" Consolidated 'N-
change Including President Miguel de-
Agucro. told the nous" money trust
committee today that, under the rul'S
of the Sew York stock rXrhang" they
were absolutely prohibited from duiug
any business with members "r that
organization ahd charged that their,
business h1d been 'urlnilcd py the
prohibition.
The committee ais" heard several
mono, brukrrs. operating IN tho "l"nu
crowd" ON the Sew YORK stock rN-
change, who testified that an "ui"I.'d
low rate Of interest would prevent tho
Inuvrm"ut Of money toward ~"
York from country banks, when ih"
money NJs needed ui home puiut~.
samuel lutrrWN'r, the committee
counsel nest called iu tn" st'nI
Frauk Is. SturWs "i M" N"w YORK
stock exchange. r." NuS ia" Orst
from th, exchange Who VII Du ul'7-
toned aS to the theory of IT, tl"u-nr-
tipIis ana as To- the spc"ulHtiv" char
uCtur oi trad" ~ stocks NSt"d on IN"
"N hIuEr.
Jf II. 'tll'.N''lt ~ 'fll'.1'.l 'N'f'l l'''n
"rs New NurN thr urst witness i"s-
iii,d AK To- methods 81 operation of
the Sew York stock exchange. lir
sad the lending Of money uu the "N
change did not begin urdinnril! unuI
about = o'.l0rk IN IN" morning,
sometimes at I"."" ".rl"rN II the
marker Wcr" ser, active.
Sometimes. hr H,id. 81, ,"".o"n
ar $4,000, ,nUu IL loaned within hit"rn
ur tN'uk minutes. TIN. guiam, ul
transactions serving ~ q buos tor
rates on renewal oI loans. hnN"
lent sometimes x2u,0Uu,uuu ct {2H,-
uuu.Uuu a day ana borrowed perhaps
Nli.uuu,urn in q slngcl day. I have
lrut .aS hiSh ~ E33,vOn,nu0. ! i"l'r'.
scnt iuo borrower rather than the
lender and. uf course, get the l"n"ht
IN ~" transactions
"1'hr method of lending money in
IA" loan crowd" un IA" stock rN-
change, was described bN IA" witness.
"" auid that Nrw york. banks loan
inr for ulu-nf-tuwn banks usually
made known th" banks Tor viii, II
they are lending
"Whnt would hc the result Of HNing
u rat" ~ interest on money "u th"
stock exchange" asked Mr. Gnt"r-
my"r.
why. II would keep the money IT
home in the country banks" an
awcroh Mr. Grirs"l.
e. W. Turner. loan hruhor Tor IN"
National City bank, said ina, tn"
bark he represents meyer charged
more than Nix per cent On loans, no
matter what tn" rate on Call money
might be on the exchange.
what would bc the result II all
banks dld that" asked Mr.. inter
Inycr.
why money would not hr attract
cd tO New York" answered Mr.
Turner.
Marcus Helm, member of the con-
aolldatcd stock cKcnangc, testified he
had been In the exchange since lNAI,
and that for years ne md traded on
both the New York stDrk cXchanR"
and tho Consolidated.
"On May 10. 1910, the governors
of the New York stock cNchang"
passed rulc prohibiting any stock
exchange broker from having any
dealings with the Consolidated said
Mr.. Helm.
Here Mr. Untcrmycr read into tho
record the rule.
MIR. Helm snld that his brokers on
tho stock exchange forced him "a
close out his account. despite an ct
fort to hght the rulo In IA" courts
He said he finally wrote tO his stock
exchange brokers setting tnrih Ia u
he WAS no longer connected with iu'
Consolidated cNchang" and that ne
would become nomluIilN an 'in'r
tive member
some tlmc. later hr vls forced t.
close cut his account ana an "ilort'
to obtain another, he Nild, Wor" lu'
tile.
Are there many srcuritirs Of In
tcrAtatc industries which can he
bought and sold only on IN" New
York stock exchange asked Mr. Tn
termyer,
Yes"
~ Consolidated oXohnOSo mem
her OWNS such stock or bonds then h,
cannot sell them In any markct?'
only by trading under cover an
swcrcd Mr.. Helm
Tho opinion Of the Sew York STATE
supreme court uphpiliEs idc EtOri
exchange rules in tho salt Dlough
by Mr. Helm was pat ~ .ht =, cord.
Under the present circumstances.
testified Miguel T.. de Agunro, prcsi
dent OF the CONSOLIDATE! stock cN
change, "busincSs on oar "N.hnnpo u
badly hnmpared. ~ lIdr'i"r Ir"pi {
~ stock sold on cur cA"rtng' ih'y,
corporations demand a." certificate
of stock 10 be accompanies by no
tnrial certificate proving the !d"ntit
OF the holder. w Ontcnd that ih
concerns are unfair 10 Their owl
stockholders because they try - fore
them to sell their stock In one mar
ket only.
~ mans guardn O. ~ not g0Dl
while he IN on our ,'Ncnf Hgr. Bot
he buys n seat on tkc y " York stnc
exchange ne In Immediately good, III
though he has les ~ In"y thih l.
had before, by the nm0unt pild "a
his seat"
Maurice Oilers. Consolidated cN
change broker, produced - letter frOI
Beers and Owens. lNEw York htnc
exchange brokerage house. dated Ma
20. 1903. The wFitarR declined t1 Il
any further bhHlneaB with 'JbcTs an
also declined 20 act for q customs
sent 10 them by ODsrH.
Mr.. Obers said that when IN
~cuFb" market was orgGnigsA he wa
forced 70 desert his business ON III