The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1912-12-18
SUGGESTS WAYS
TO END GAMBLING
'ujo Committee Has Reforms
For Stock Exchange
WOULD PREVENT SHORT SALES
Operators Like James r. keene, Who,
II Is Alleged, Manipulate Market
Would Be Barred From Trading

'Sb'd &c
Counsel for the Pujo money trust
probers threw out in the course of its
hearing at Washington these radical
suggestions of reform for the New
York stock exchange:
/. That members of the big board
be prohibited from executing orders
for important operators like j. Il.
Keene, who are known to have manip-
ulated the market.
2. That the New York exchange
prohibit short sales of stock.
3. That the exchange compel the
actual delivery of stock at the New
York exchange clearing house.
Members of the committee seemed
to be under the impression that it
would be as feasible for the stock
exchange to prevent its members
from doing business for manipulators
like Keene as it is to apply the regd-
lation against any member executing
orders for a member of the consoli-
dated exchange.
Also, the committees counsel dD-
parently believes that the enforced
presentation of stock certificates at
the clearing house would materially
reduce speculation.
All of these suggestions were mot
by officers of the exchange with the
argument that they would be i'm
practicable.
A large part Of the proceedings
were taken up with the consideration
Of the ethics of the short sale. Frank
x. Sturgis and Rudolph Keppler, both
former presidents of the exchange
and now members of the board of
governors, gave their views on So
called manipulation and defended the
methods and practices on the big
board
Mr.. Sturgis could imagine circum-
stances undcr which ii was perfectly
justihable to go short Of the market,
but he had never in his life sold a
share in this way for himself and he
did not approve of the practice when
the market was in normal condition.
He added that it was largely a
gamble" but admitted that the New
York stock exchange has never
seriously considered the proposition
of forbidding it,
Mr.. Keppler thought that manipula-
ton was legitimate when the rules
were observed and when il did not
pass the bounds of reasonableness.
The test of reason that he would ap-
ply seemed to depend on the wealth
Of the manirulator and the length Of
his pocketbook.
The committee in the course Of the
day tried to obtain from Harry Con-
tent, who has the reputation OF eX-
ecuting the biggest orders on the
street and of representing some of
the most important traders, how the
feat of artificially raising and de-
pressing price levels was done. Mr.
Content smiled and shook his head.
He knew very little about such
things.
DO you know what is meant by
manipulation of stocks?" he was
asked.
Mr.. Content said that it was done
differently in different cases. Mr..
Content doubted whether there was
very much manipulation in nondivi-
dend paying stocks. Certainly there
isn't at the present time.
"Do you not know that a prolific
source OF speculation is on nondiyi-
dend stocks on rumors of coming
dividends?"
yes"
SIS it on rumors of dividends that
do Gomez"
Probably"
Sometimes they do not material
lze?"
That happens"
Mr.. Content acknowledged that to
depress the market the broker sold
short and kept on selling until he
thought it was down as far as it
would 60 Then he covered
But not always at a profit" said
Mr.. Content with a smile.
THAT you consider perfectly legiti-
mate?"
"J do"