The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-14
Com mittee Hears of
Manipulation and
Short Sales. "
SEEKS METHODS
OF PRICE-FIXING
Witnesses Deny Ever Having
Been Parties to Pool for Ad-
vancing or Depressing Stocks.
Inquiry Made Into Boycott
of Work of Bank Note
Company.

Washington. December 13.-'.Man-
ipulation" and short sales" on the
New York stock market as forms or
gambling, and the methods OF stock
Exchange brokers. formed the basis OF
to-days hearing before the money
trust committee of the House. The
committee concluded the first week OF
its hearings and adjourned until
Monday afternoon. when the inquiry
VIII be resumed.
Frank X. Sturgis and Rudolph
keppler governors of the New York
Exchange. and Harry Content Samuel
+. STREET. and J. P. Grier. brokers.
We're the witnesses examined to-day
.ls to Stock Xchange operations. After
ehey had been questioned, Samuel Tn
termyer counsel for the committee.
took up the relations between the
stock Exchange and the New York
Bank Note Company. which cannot
IRE listing on the exchange for
stock certificates or bonds which IL
engraves.
Mr.. Untermyer. in his examination
OF the Stock Exchange representatives.
endeavored in vain to secure descrip-
ION of methods of manipulation en-
ployed 20 advance or depress the price
OF stocks. Each of the witnesses de-
MED he had ever been a party to
bcOl arrangement loE lldnlptldLiOf.
Mr. Sturgis and Mr.. Keppler testified.
however. that in their opinion some
Of the operations on the stock Ex-
change. including manipulation and
short selling, were If gambling
nature" But both agreed that these
matters could not be regulated by the
exchange as a body.
Matter of Conscience.
short selling is matter which
every individual must settle with his
own conscience" said Mr.. Sturgis
At the conclusion of his testimony
Mr. Sturgis put into the record part
, of speech he had made before the
Hughes commission which investigated
the Stock Exchange and a copy of the
replies made by the law committee of
the board OF governors of the ex-
.ange to questions submitted by the
Hughes commission.
Samuel F. STREET.. OF the arbitration
and clearing house committee of the
Stock Exchange. told the committee
that the exchange maintains a securi-
ties clearing house. where the trans
actions on the floor are cleared be-
tween brokers' Mr.. Untermyer sug-
gested that this clearing house might
insist on having brokers deliver the
numbers of certificates OF stock in
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 a regulation on short sales.
Harry Content said he had never
managed a pool for manipulating a
line of stock He asserted that the
idea of forming pool was an old one
no longer employed. y number II big
operators worked individually. he said
Why is that Mr.. UnterAyer asked
They find il safer TO have no part
ners.- said Mr.. Content The pool
members used to sell each othei Out
Mr.. Content said ne believed cross
orders Of sales and purchases of the
same stock were legal He did not
think manipulations to raise or depress
the p.ice OF stock deceived the public.
Ruled on stock List.
At the afternoon session Mr.. INTER
rnver examined George y Field. vice.
president of the New York Bank Note
Company. He testified that the cx-
change had ruled the work II his COM
pany of the stock list and that the
bulk of the work tor exchange stocks
was done by the American Bank Note
Company. lie produced q vclu7iuous
correspondence charging the American
Company with mSnopoiizing the en-
craving Of stocks and bonds. with
the aid OF the stock Exchange
\ similar charge in the report OF
the Hughes Commission was also
placed in the record. This phase Of the
inquiry. NJ. UnteTmycr said after the
hearing. WIS Introduced at the re-
quest OF Mayor GaynoT. OF SeS YORK.
and Governor Pothier. OF Rhode Island
Bonds engraved by the New York Com
pany for New York City and for the
state Of Rhode Island. Mr. Field tes-
titled have been refused listing on
the exchange
John & Attesor. secretary OF the
Wabash Railroad. said that the FIRST
Issue ~ Wabash stock certificates
was engraved BY IN. New York Bank
Note Company. TIE New York Bank
Note Company was later ruled III tire
stock Exchange. and the secretary OF
the exchange notified the WABASH that
the certificates vsuiL not be accepted
since then the WABASH stock. AFR. A.
,s~on said Rad been engraved BY the
American Bank Note Company. as the
work - the New York Company would
not be accepted or listed on the ex-
change