The Birmingham age-herald., 1912-12-13
Millions Loaned Over Telephone

witness said millions upbH HlniipIS Wcto loaned over the telephone in the course of regular business. Mfr. Untermeyer at- tempted to establish that Steel common was considered a good collateral because
 of the wide market for the stock. MT. Griesel declared that brokers would accept
 more New York Central than Steel com mon as collateral for a loan. The method of lending money in the loan crowd on the exchange was described by the witness at length He said that New York banks loaning for out of town banks usually
 made known the banks for which they were lending.
 "What would be the result of fixing rate of interest on money in the stock eS- changer" IIntermeyer asked quickly.
 why, it would keep the money at home in the country banks MT. Grisel an- swered.
 c. w. Turner loan broker for the Na- i tional City bank, said that the bank he represents never charged over 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 llkewise?" Untermeyer asked.
 why money would not be attracted to New York; Turner replied. He said recently when money was at 20 per cent he loaned for the account of his bank $3,0o0.OO0 at per cent He de- scribed the general method of making loans OH the lopT Ol tnC eAthdh6os PAAN said that the total daily loans on the ex- change would amount to more than $fO,- GOO O0O Witness said that was merely an estimate, and that there were no figures available to show the total daily loans on stock exchange dealings. Marcus Hein. member of the Consoli- dated stock exchange. testified that on May 10, 1910, the governors of the New York Stock exchange passed a rule pro- hlbiting any stock exchange broker from having any dealings with the Consoii- dated exchange.
 Hein Forced to Close Out MT. Hein said that his brokers on the stock exchange forced him to close out his account despite an effort to fight the rule in the courts. He said he finally wrote to his stock ex- change brokers setting forth that ne was no longer connected with the Con solidated exchange and that he would become nominally an inactive member Some time later he was forced to close l. out his account and all efforts to open another he said were futile. Are there a great many securities of Interstate industries which can be bought and sold only on the New York Stock exchange2" Mir Untermeyer inquired
 l Yes" witness answered.
 If a Consolidated Stock exchange member owns such bonds or stock than I he cannot sell them In any marketY'
 MT. Untermeyer asked.
 "Only under trades covered up,' Hein answered.
 The opinion of the New York supreme
 court uphoiding the stock exchange
 rule brought in the suit by MT. Hein
 was put in the record.
 Miguel DeAgeurs, president of the IIa.
 said that number of transfer con- lcerns refused to accept the guarantee
 of the Consolidated exchange or it's
 members and gave the following list:
 Pennsylvania railroad, Lehigh Valley, ] tAtchison, Topeka and Santa Fe, United States Steel corporation, Harvey Fisk
 X Sons, the Bankers Trust company, | the Manhattan Trust company and the Guaranty Trust company
 Correspondence covering a period of two years between the Consolidated ex-
 change officers and k. H. Gary of the Steel corporation, in which the exchange | sought in vain to secure transfer facili . lties for Steel stock on the Consolidated
 exchange was put into the record. | Under the present circumstances,' MT. DeAgeurs said, business on our
 exchange is badly hampered. To prop lerly transfer stock sold on our exchange i these corporations demand that the cer- ! tificate of stock be accompanied by a notarial certificate proving the iden- 1 tity of the holder. We contend that i these concerns are unfair toward their own stockholders because they try to force them to sell their stock in one market alone. The guarantee of a man lis not good while he is on our ex- Ichange. If he buys seat on the New York exchange immediately he Is good
 although he has less money than ha
 had before by the amount he pays for
 his seat"
 II Maurice Obers, a Consolidated ex- change broker, produced letter from