The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-12-13
DragsFrom Cha 'rmanSturges
of Law Committee
Method of Brokers
MARKET "RICGINC"
REGULAR PRACTICE
Is All Right if Only Regular
Commission Is Paid Over d
to Operators, Says
Witness


Frank X. SturgIs, chairman Of the
law committee OF the New Y ork st0o1k~l
exchange, thege remarkable adm1Us
sions were elected by samuel Inter
myer at the currency and banEiuxa
committee investigation Of fnanct44 Il
conditions TO-DAY: z
/. That manipulation of stock D.
syndicates and pools for the purpOeo
OF Initiating or depressing prices Gre
regarded as perfectly legitimate byN
the exchange, il the market riggeEmA
are always careful to pay the c0n1MsZ
missions charged by brokers who aF1
mem bers OF the exchange.
2. That brokers deliberately hNH4s
pothecate the stocks Of their cugt0n1@
ers as security for their own tth0
brokers loans), irrespective Of tn
amount that has been paid on rid
stocks. and that as a result OF thinN
practice in every one of dozen fait~
ures in the past few years the cur
toners had lost their stock.
3. That the New York stock exsSa
change sells its ticker service to the
Western Union, hut will not peFusf&@
the Western Union to resell to auys
, customer that ii does not approves
This seems to be a plain violation a 4
the Sherman antitrust law. NJ
f. That the commission appointe1a
by Governor Hughes to INVESTIGATES tt
, the stock exchange made a secret re-
port, available to none but stock exkz
change members. Questions and aass
swers were printed, but never maxto@
public.
s. That when stock exchan20a
house fails, having converted the -.
curities of its usIomers, the entire
value Of the members sea. must flroe
/ be used to ray in full his debts u
| members CT the stock exchange befor0
| the defrauded customer can get anr~s
/ thing on account OF his converto07
] stock.
| 6. That the membership Of tnt 0x>S
| change is the same today as 1t waGE
in 1862 when the exchange did 0nu~
| fftieth of the business Il does noU.3
| National MONEY Market.
From other witnesses, inclldinHs
/ money brokers. II wis learned that
I the New York stock exchange 10 the
| only money market in the counfTxS
]. II. Griesel. of tiricsel e -;oEer
! money brokers. admitted that the
| Limitation of the iate FIR Ien(liHGs
I money In New Yeri; '.ould S.op tt4a
drain from Western banas Of mun1a
needed to move the crops. and grentAE
! iy facilitate business In sections af III
/ country outsitie "s New Y,rx
/ The feud between the stock 60
/ change was gone int al SOME Lengths
/ Mr.. Sturgis. presse for an onswer N1@
Mr Untermyer, ajriltted that IL thUa
/ Consolidated exchange raised its ctsl11&
! mission from one half 10 the full r11xH@
charged by the exchange for bros
erage lit would be a healing baIn
I as far as the feud was concerned. as
Mr.. Sturgis, who was on the sta1
all the afternoon, made an unwillio
! hut FfI nit n gu
/ a great many of his answers W01NSj
based on hearsay, that is what N16
knew of the exchange because ok h11s
| long experience. He said that Il 49,
considered perfectly legitimate RI
carry on matched sales" but Whis
asked If he ever engaged in any 1as(
Transactions, himself. he fatty deeif
ed TO answer. #45
| Once. in response to a question
Mr.. Untermyer. as to whether he Ct
sidered 1t moral to carry on 80
sales. he replied: # ss31
You are asking question aho~
morals. I am giving you a stock N1
charge answer"
Whats the difference?" innuiF1
Untermyer blandly.
There's wide difference" snapp&
! Eturgis
Untermyer. apparently now hax
/
went after the witness without NnefG
Stursjs parted every question.
| usually finished by giving the a1lG
1 that the attorney wanted. Ones
twice he turned for support to m
| G.. Milburn. who is sitting thro
| the hearings as attorney for the at1S
exchange. Mslhurn. as ruts, ~
| hir, to answer the quest on. ssS2
Sturgfs tcnk the stand Just a411
M
| proceeded. a 81 s6sgSA9a
rs 1t possible to give the v03Ix%
OF business transacted on thu
ch~-ea In 1897" asked J1ntevyIp5
IT am not prepared from M
to rive IT," replied Sturgis
/ rs there any record or thu
| securities then, and their aggRl
valve ?" sS33iS
'"reat can be done. think. e
l. What are the number Of -
ties now AS compared with th
Fifty Tires the number.
say and flftv times the valuN 3
Then. why has there been &
crease for wears in the nursA
members Of the exchange <" aAk0
Urr>~rver. ss1
.-Thara are sufficient run1k
brokers to attend to the busines
Piled Mr.. Stu-ris,
! In answer tn further nuesftn1
Stnrrss sa'd that exrnan8N
brought st2 cn0 IN 1869. ara IN
/ short &ss 900 now, and have
for $ahea0. Ha attributed a.
r-,ce at the rresent firs~ 70 H.
Sitiorv Of husfrees. ana the elea
Ing. TIE seat rerresents 70 IN
an undivided interest IN the 1901
/, property during life. and 11&1
rnrance in the event ~ deaths
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