Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1912-12-12
RULES OF TIE
GAME WERE
TIGHT
NEW YORK STOCK EXCHANGE HAD
THINGS CORRALLED BY CONTROL
OVER MEMBERS SAYS MONEY
TRUST WITNESS.
The LOAN CROWD
Tells ITS STORY

Washington, ID. c. Dec 12.-Hlalf a
dozen members of the Consolidated
exchange including President Miguel
de Aguero, told the house money
trust committee today that under
rules of the New York stock eX-
change they were absolutely prohibit
ed from doing any business with
members of that organization and
charged that their business had been
curtailed by the prohibition.
The committee also heard several
money brokers', operating in the loan
crowd" on the New York stock eX-
change who testified that an enforced
low rate OF interest would prevent
the movement of money toward New
York from country banks when the
money was needed at home points
Samuel Untermyer the committees
council next called to the stand
Frank X. Sturgis, of the New York
stock exchange.
He was the first from the exchange
who will be questioned as TO the the
ory of its transactions and as to the
speculative character of trade III
stocks listed on the exchange.
J. H. Griesel Of Gresel & Rogers,
New York. the first witness, testified
as to methods Of operation OF the New
York stock exchange. He said the
lending of money on the exchange
did not begin ordinarily until about
II a. NJ, sometimes at 1890 if the
market is very active.
Sometimes" he said $4,000, 900
or $40oJ,000 is loaned within IS or 20
minutes this volume of transactions
serving a. Il basis for rates on renew
al Of loans. have lent sometimes
$40. .G30.00o or $9500O0 900 day and
borrowed perhaps $15,000,00O in a
single day / have lent as high as
$50. 100000 ! represent the borrower
rather than the lender anu, of course
| get the benefit in the transactions
The method of lending money in
the loan crowd on the stock eX-
change was described by the witness
He said that New York banks loan
ing for out OF town banks usually
made known the banks for which
they are lending.
"What would be the result of fix
ing a rate of interest on money on
the stock exchange" asked Mr.. Un-
termyer.
home in the country banks answer
ed Mr.. Griesel.
G.. W. Turner, loan broker for the
National City bank, said that the
bank he represents never charged
more than 6 per cent on loans, no
matter what the rate on call money
might be on the exchange.
"What would be the result if all
banks did that asked Mr.. Inter
myer
"Why, money would not be attract
ed to New York" answered Mr.. Tur-
ner.
Marcus Helm, member of the Con-
solidated stock exchange, testified he
and that for years he had traded on
both the stock exchange and the con
solidated
"On May 10. 1919, the governors of
the New York stock exchange passed
Il rule prohibiting any stock ex-
change broker from having any deal
iugs with the Consolidated, said Mr..
Helm.
Here Mr.. Untermyer read into the
record the rule.
Mr.. Helm said that his brokers on
the stock exchange forced him tc
close out his account, despite an eff
fort to fight the rule in the courts.
He said he finally wrote to his
stock exchange brokers' setting forth
hat he was no longer connected with
he consolidated exchange and that
le would become nominally an mac
i've member"
Some time later he was forced to
close out his account and all efforts
% obtain another, he said, We're fll-
lie.
Are there many securities of inter-
state industries which can he bought
md sold on the New York stock eX-
;hange?' ask ed Mr. Untermeyer
Yes
IF consolidated exchange men,
ger owns stock or bonds then he can
lot sell them III any market?"
Only by trading under cover" ans
Sered Mr.. Helm. The opinion of the
\eW York state supreme court up
loldin2 the stock exchange rules in
he suit brought by Nh Helm was put
Ii the record.
Under the present circumstances
estified Miguel de Asuero, president
# the Consolidated Stock Exchange,
business Oh our exchange is badly
To transfer properly.
took sold on our exchange these cor
'orations demand the certificate OF
took to be accompanied by notarial
certificate proving the identity of the
lolder We contend that the con-
erns are unfair toward their own