The Sentinel=record., 1912-12-14
INVESTIGATION IS BRINGING OUT SOME OF THE INNER WORK
 lNos OF STOCK EXCHANGE.
POOLS NJ LONGER EMPLOYED
This Was Caused on Account of Men Entering Pool Selling Each Other Out--Not Safe to
 Have Partners.

Washington. Dec. B. "Manipula-
 ton" and "shortsales" on the New York stock market as forms of gambl- ing, and the methods of stock ex- change brokers, formed the basis of today's hearing before the money trust committee of the house. The committee concluded the first week
 of it's hearings and adjourned until Monday afternoon when the inquiry will be resumed.
 Frank K. Sturgis and Rudolph Kep- pier governors of the New York stock exchange and Harry Content. Samuel F. Streit and J. P Grier, brokers, were the witnesses examined today as to stock exchange operations. After they had been questioned, Samuel Untermyer, counsel for the commit tee took up the relations between the stock exchange and the New York Bank Note company which cannot se- cure listing on the exchange for stock certificates or bonds which 1t en- graves.
 
 of the stock exchange representatives endeavored to secure a description Of methods of manipulation employed to advance or depress the price of stocks Each of the witnesses denied that he had ever been a party to a pool ar engagement for manipulation. MT. Sur gis and Mr. ,Keppler testifieds how ever that in their opinion some of the operations on the stock exchange including manipulation and short seli ing. were of gambling nature" But both agreed that these matters could not be regulated by the exchange as body
 short selling is matter which every individual must settle with his own conscience" said Mir Stu-gis.
 At the conclusion of his testimony
 Mir Sturgis put into the record part of a speech he had made before the Hughes commission which investigat- ed the stock exchange and a copy ot the replies made by the law commit tee of the board of governors of the exchange to questions submitted by the Hughes committee.
 ] Samuel F. Streit, of the arbitration and clearing house committee of the stock exchange. told the committee that the exchange maintains a secur- ity clearing house where the t-ansac- tions on the floor are cleared between brokers. Mir. Untermyer suggested that this clearing house might insist on having brokers deliver the num- bers of certificates of stock in which they traded to the clearing house and thus prevent dealings in stock which 1 is not owned. MT. Streit did not fav- or this suggestion and said he could | tell nothing of the effect of such a regulation on short sales. Harry Content said he had never managed pool for manipulating d ! line of stock He asserted that the idea of forming a pool was an old one no longer employed A number
 of big operators worked individually, | he said:
 Why is that?' MT Untermye- ask | ed
 They find it safer to have no part ners," said Mir Content. The pool members used to sell each other ouA" | Mir Content said he. believed cross orders of sales and purchases of the same stock were legitimate. He did not think manipulations to raise O. depress the price of stock deceived l the public
 | At the afternoon session Mr Inter myer examined Geo. A. Field. He testified the exchange had ruled the work of his company off the stock list ' k1.o thn exchange stocks was done by the | American Bank Note company. He produced a voluminous correspond ence charging the American company with monopolizing the engraving of stocks and bonds with the aid of the stock exchange
 similar charge in the report of the Hughes commission was also plac- ed in the record This phase of the inquiry, Mr lIntermyer said after the | hearing was introduced at the re- quest of Mayor Gaynor of New York and Gov Pothier of Rhode Island Bonds engraved by the New York | company for New York city and for the state of Rhode Island, MT. Field I testified, have been refused listing on the exchange.
 | John C. Atteson. secretary of the
 Wabash railroad. said the first issue
 of Wabash stock certificates was en
 graved by the New York Bank Note
 company. The New York Bank Note company later was ruled off the stock exchange and the secretary of the ex
 change notified the Wabash that the | certificates would not be accepted l Since then, the Wabash stock, Mir