The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1912-12-14

tccnunueo Fron FA@R SH1
stocK Nr sturris said Re believed re
uRurea 10 BE- about right
Vow, on that ta6. 600 900 shares the
brokers doinH the trAeinN receive ~
cents a share commission z ID cents
on oaca side of the Transaction. % they
nett asked Mr.. Untermyer.
Ne. because 81 that speculation 10
~ brokers for themselves and on that
there is no commission answered Ar.
sturra
81 stursis SAID that about one
third % the tradinE wss done ~
brokers.
~rhsn about isI. 0oo.0oo q shares are
bought and cold ~ the public
About that"
Ar. sturris uald rhat there we're
about 400 90 800 actlve brokers On ne
Commissions hs said we're ehaswed
On the par value % stock Without re-
gard % the market price.
as TO Snort eALEaH
ar Untermysr took 40 ths question
81 "ahort salss" The witness explained
that snort selling vas the practics
a. selling stock not owned - the
seller. On order 90 by ~ Ia later e. .
lover prize
me object IL b make money on a
break m the market by asillnE what
you have not got isn't that co.
"Wea." replied Mr stureia
NJ stunia said that be believed %
proper Cor a broilsr In times o. nanic
20 protect himself ~ ahort sales. n
he we're holding another line % STOCK
Cor watch there vas no market
DO You believe short selling fuHti-
Fable IN q Normal market
That d. q question between ever
man and he ouu conscience
DO you personally approve short
selling On a normnl market
Personally. Z 90 net"
Tha stock exchange does not dis-
courage short selling
trr."
hff. TutermvFr renewed TIE arku-
menta iu favor co short selling AZ
balance on rising market and a.
ateadyinE q general market situation.
Don't you think the moral obliauy
- such a transaction outweighs any
arEgment in its favor
yes. 7 90. personally
AZ matter 90 fact thaf r.
Eamhl.nE. pure and staple
Yes. very larHely. answered ar.
T sturEls
TIE question 81 ths neral duty ~
. the stock exchange 90 the ruhiic In
volvsd Mr stursis and the LAWYER IN q
. heated nrEument
"rhe exchange a. such has no duty
toward the public" safd hfr. @fureia
except 90 maintain a place 20 90 bust
ness and % surround that Cuisines
eth proper safcwaards
The witness said that h. ga not
believe the stock exchange va sui1ty
of misleading hanks a. % ths value q
securities manipulated on thls point
De argued o. isnKth. Mr untermysr
andeavninE 20 secure ERE aduiaaion
that ths stock exchange should make
Ideaiings on thc foor 81 the eachanas
dsaiinHa an the real value ~ sfaefs
that the securities might bs Quoted "a
"a price representinE real value
MI sturgis discussed the ao-canea
Rock Island manipulation on pseem
bsr 90 1893 when e. waa rharrsa
|thronFh r. n Chaplin a Co. twenty
lots - 1000 shares each were bouK "a
ION single order BE- different brokers
The stock went from 81 % sl n two
hours and dropped hack 20 below So
m three hours more. SIR sfurris said
that me two members - Chaplin a
ICr we're auEpsndsd rem ire exchanEs
Cor trfrty dsys
That Vas tae nest Nlarinn case ..
manipulation On the history - ths sx-
|chanFs wasn't So ssksd -fr Inter
.mVtr
M- sturris would express 10 orin-
Son
Why 10 % you suansna rsn fol
uanipulaticn Ike this for nniv fnirty
fayH and suspend Cor I've years usr
wh8 sriit their commissions asks1
Mr Eutermyer.
Mr. -turEIs deciared mat dlvidinr
rarnninsl1nH was taa most Infamous
crime member % ~ exlAmnws ccalf
commit against his fellow rnenhern~
The witness and ~ lauger eis.
clsse4 a. icnFth re rea1cn e ga