Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1912-12-13
FORMER PRESIDENT
TELLS OF STOCK
EXCHANGE RULES
AND CUSTOMS
Hundred and Ninety Million
Shares of Stock Change
Hands Yearly; Two.Thirds
of 1t Bought BY Public,
BROKERS' COMMISSION
% CENTS PER SHARE
my Lrn.rd wire 10 rysninE mrrsldl

fBy LEASED wire Co Evening h-raIdl
Washington, Dee. I2 Franz, Is.
Slurgls a Sew Norh hruk,r Ind tor.
mrr president ut the Sew York stock
ENchuugr, Waa In the Vltn"ss chnir.
again toda, when th, hous, mouo,
trust mNrHiEutiuE committee ry
sumcd ts hearings samuel lnl"r.
mycr counsel for the committee. "u.
dcuNurrd To- draw from Mr.. Sturgis
an estimate of the amount of huSl.
ness done on the Ncw YORK stock
Exchange annually nut WAS unsuc.
Ccssful The lawyer read from the
answers furnished 10y the exchange To
uu"sti0uy uf the hughes commission
Nn estimate ur yearly business
amounting To- 9G.OOO.UOO shares Of
stock MIR. Sturgis said hr believed
the figures To be about right
"Nnw ON that lgG. 900. 600 shares of
thc brokers doing tn" trading receive
| 2h cents a share In commission, l2h
cents on each side of tho transaction,
du they not =" asked MIR lntcrmycr
mo. because some uf that Sp"Culn.
! liun IN by brokers for thomBclNca, nnd
on that there iS nu Commisslon,' an
] NN'ltV NlNlkld'
MIR Sturgls said that about ono
! thlrd at the Trading vas done by
| brnkcrH
Thcn about i3i. .OOO. 900 or shares
are bought and gold ny tho puhllc?'
yes. about that"
MIR. Sturgis said there were about
geo or COO active brokers on tho ez-
change.
| Cnmnissiuns hr said, were charged
on the par value at stock without
! regard Ia tn" market price.
MIR Sturgis was led by Counsel
Unicrmyer for the committee through
"a long discussion ot the moral aspect
! OF the "shUrt Halsa" ar sales Of stock
| which tho seller does not possess
| lie Hdmitted that personally h" he
llcvcd the "mOrnl OhlopIy" OF such u
transaction OvCrCnmu any argument
IN its favor,
! "Il s not part or my duty 10 urge
| moral reforms upon the community"
| mld MIR. Sturgs Tie tOOk the sam"
stand aH To "mnnlpulatlon" Of stock
tn u higher or lower level by CruAs
aHlos and purchases. declaring thni
| the exchange nv such did not r0Cng-
nlzr such transactions,
Mr., SturRlH held thut the duty Of
the Stock Exchange toward the public
iB only to see that u proper place n
| maintained for buying and selling ana
/ that proper restrictions are observed,
ON the question ol short mlcH Mr..
llntcrmyCr asked:
"As u matter nr fact short selling
~ iu3t gambling, puro aud simple
"Nca, very largely that" replied
Mr. Sturgls,
Mr.. Rcplrr. also former urcHiJcnt
nt the "SChango, who followed Mr.
Sturgls on the stnnd, dcclurcd that
manipulation" waS perfectly prop.
~ ns long M II wns logitImatcly con
Quoted. the commissions were paid
aud lh"T0 was no Cnllu5lOn,
"bu you agree with The conclusion
at the lluhgrs commission that u
Tuhrlnntiul part at IA" trnnHaclInrs on
! the stock exchange are gambling 90
asked Mr. Nni"rmyCr,
| - would ray that Enmo trHusHr
tiuus uu ihr stock exchange arc HumC
what at - gambling nature" an
Sw"r"d Mi koppl',,
Mr.. SluTgiR discussed the ~ called
Rock Island manipulation un Drcom'
bcr ~, lnhH, when II wiiH rhnrRed,
through = t. Chapn a. CO., twenty
lots Of 2.DUO shares Cnrh were bought
on u single order by different hrUl
ers. Tho stock went from 80 iu 81
IN two hours ana drupp"d hack I,
below 80 In three hours moro Nj
I''H'Nh h'h HhiA hilhA NV NNll Nl'lllN'l' ' ~
hupin a. Compnny we're Suspended
from the exchange for thirty days
That wnH the most daring Cnau q
manipulation In the history uf tht
"xchhng". wasn't ~" asked Mr., Tn
tCrmyCT,
Nj slurRis would express no opln
ion
"Why ig II you suspend mon fol
manipulation rtk" this for only THIRTY
days ana suspend TOT nvc years mel
who spllt their cuInmlsHiOnsP" asked
Mr. t'ntcrmycT.
Mr.. SturEis declared that diyidlni
COmml sHlonE WHH "tho most infHmpJU
crime member Of tho OKChanH,
COULD commit against htN fellow mem
hers"
Harry Content, II Sew York hrnh
or, Baid hiH firm was Hu miiNr trldcI
In stocks. that ne never had ungI
neered manipulation himself Ia
he knew what manipulation "as
lie said no had never been oupl"S"'
by IA pool.
rive always been employed hy IN
dividuHl houses" he said.
That IN tho way It's done, ism
1.-THE pool acts through n singh
house. the pool manhgerY asked Mr.
l'ntrrmycr.
"Yos," answered Mr.. Content.
The witness finally described th
process Of giving cross orders to bu
und 10 scli them stock. lie said tina
tho object ~ the operation whH 4
create an active market In stool
without actually buying any OF tn
stock
"DOn't you think that decelVeB tn
public" asked Mr. untermyer.
"NO, don't think II does"
"Do you think it'H good for tn
public7"
"YeH, sometimes"
Nj. Content said that operation
by pools WAS no longer feature %
the market but that number Of bll
Individual operators were nov work
; iu9 on the street.
} III "Vvhv a thai 20 aaked Mr. IfC(as