Perth Amboy evening news., 1912-12-14
SHORT SALES
TO BE BARRED
Probers In Wall Street Me-
thods May Act.

Washington, Dec. 14.-These radical
suggestions Of reform for the New
York Stock Exchange were tentatively
offered by the Pujo investigating COM
mlttee:
First.-That members Of the big board
be prohibited from executing orders
for important operators like James H.
Keene, who are known to have manipu-
lated the market.
Second.-That the New York Stock
Exchange prohibit short sales Of stock.
Third.-Thnt 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 regulation against
any member executing orders for q
member Of the Consolidated Exchange;
also the committees counsel apparent
ly believes that the enforced p%resenta-
ton Of stock certificates at the clearing
house would materially reduce specula-
ton. All Of these suggestions were
met 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 @.
Sturgis and Rudolph Keppler, both for
mer presidents Of the Exchange and
now members Of the board of COVER
nors, gave their views on SO called
manipulation in the stock market and
defended the methods and practices on
the big board.
Sturgis Never Was "short."
MI. Sturgis could imagine circun-
stances under which 1t was perfectly
j%ustifable to 60 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 mar
ket was in normal condition. He init
mated that it was largely a gamble"
but admitted that the New York Stock
Exchange has never seriously consid-
cred the proposition Of forbidding it.
Mr.. Keppler thought that manipula-
ton was legitimate when the rules Of
the exchange were observed and when
1t did not pass the bounds Of reason
ableness. The test Of reason that he
would apply seemed to depend on the
wealth Of the manipulation and the
length Of his pocketbook,
The committee tried to obtain from
Harry Content, who has the reputa-
ton of executing the biggest orders on
the street and of representing some of
the most important traders. how the
feat of artificial realizing and depress-
Ing price levels was accomplished.
Mr.. Conten. smiled and shook his
head. He knew very little about such
things.
Dividends Shy at Times.
"Do you know what is meant by
manipulation of stocks?" asked Mr.,
Untermeyer of Mr.. Content with q
smile.
Mr.. Content said that 1t vas done
differently in different cases.
Mr.. Content doubted whether there
was very InuCu muHipuldtlOu III u0u-
dividend paying stocks. Certainly there
isn't at the present time.
do you know that a prolific source
Of speculation on dividend paying
stocks on rumors of coming divi-
dends"
"Yes."
"Is 1t on rumor OF dividends that
do Gomez"
"Probably."
"Some times they do not material
ize."
"That happens"
Mr.. Content acknowledged that to
depress the market the brokers sold
short and kept on selling until the
market was down as far as it would
go. Then he covered.
But not always at a profit" said
Mr.. Content with a smile.
Look at the ''prices of things as
! advertised in today's paper. If you
know values, and have a care for your
---.. Ill.,. Dr,a1, will ,p4araCt