Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1912-12-14
New York Financiers Admit
ManipuIations Are Probable
But Deny Personal Knowl-
edge Of Them.
MONOPOLY OF BANK
NOTES is ALLEGED
Company President Asserts
Rival Gets All Business Of
Engraving and Printing List
ed Securities.

tBy Morning journal Special Leased Wlre.)
Washington, Dec. "Manipula-
ton and short sales on the New York
stock market as Il means of gambling
and the methods of stock exchange
brokers formed the basis of today's
hearing before the money trust com
mttee of the house. Frank X. Stur-
gis and Rudolph Keppler, governors
of the New York stock exchange, and
Harry Content Samuel p. Streit and
J. p Crier, brokers. were the wit
nesses examined today. After they
had been questioned Samuel Inter
myer, counsel for the committee. took
up the relations between the stock
Note Company. which cannot secure
listing on the exchange for stock GER
tificates or bonds which it engraves
Mr. Untermyer. in his examination
OF the stock exchange representa-
tives. tried in vain to secure de-
scription of methods of manipulation
employed to advance or decrease the
price of stocks. Each of the wit
ncsses denied that he had ever been
u party to q pool arrangement for
manipulation.
Mr.. Stureis and Mr.. keppler testi
fled, however. that in their opinion
some of the operations ON the ex
change, including manipulation and
short selling, were. OF q gambling
nature" Both agreed that these mat
tcrs could not be regulated by the ex
change as a body.
short selling lis a matter which
every individual must settled with his
own conscience" said Mr.. Sturgis. A
the conclusion of his testimony Mr..
Sturgis put into the record part of a
speech he had made before the |
Hughes commission which investi- |
gated the stock exchange. and a copy |
OF the replies made by the law com
mittee of the board of governors of |
the exchange to questions submitted ,
by the Hughes commission.
Samuel F. Streit, of the arbitration |
and clearing house committee of the
stock exchange. told the committee
that tho exchange maintains a Sc
curties clearing house where the
transactions on the floor are cleared
between brokers'.
Mr.. Untermyer suggested that this
clearing house might insist upon hav
ing brokers deliver the numbers of
certificates Of stock in which they
traded to the clearing house and thus
prevent dealings in stock which is not
owned. Mr.. STREET did not favor this
suggestion and said he could tell
nothing of the effect of such rcgu-
lation on short sales.
Harry Content said he had never
managed a pool for manipulating
line Of stock. He said that the idea
of forming q pool was an old one. no
longer employed. A number of big
operators worked individually.
Why is that" Mr.. Untermyer
asked
They find it safer to have no part
ncrs." replied Mr.. Content. The pool
members used to sell each other out"
Mr.. Content said he believed cross
orders of sales and purchases of the
same stock were legitimate. He did
not think manipulations to raise or
dcpress the prices of stock deceived
the public.
George A. Field. vice president of ,
the New York Bank Note Company,
testified that the exchange had ruled
the work OF his company off the stock {
ilst and that the bulk of the work for .
exchange stock was done by the 4
American Bank Note Company. He
produced volumnous correspond z
ence charging the American com r
pahy with monopolizing the engrav- /
lnSs of stock and bonds with the aid +
OF the stock exchange. q
similar charge in the report Of t
'he Hughes commission was placed in 5
'he record. This phase of the inquiry I
Ar. Cntcrmyer said. was introduced =
~ the request f-Mayor Gaynor of 4
New York. and Governor Pothier. of d
lshode Island. Bonds engraved by the C
New York company for New York
iN and for the state of Rhode h
island. Mr. Field testified. have been &
refused listing on the exchange" Y