New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-02-27
United Opposition to Suffers
Proposed Legislation at
Albany Hearing.
MILBURN PREDICTS LOSS
Compulsory Incorporation
Would Be Most I'm
fortunate, He De-
clares.

New York Curb Market Association pre-
sentcd united front to-day in opposi-
ton to the bill recommended by Gov
cruor Sulzer. which is designed 10 COM
pei the Incorporation OF exchanges or
associations marketing stocks and Sc
curities Eleven bills in all embodying
suggestions of tho Governor relative 10
regulating dealings in stocks were con-
sidercd II a hearing before the Senate
and Assembly judiciary and codes COM
rnttccs.
The hearing was not as largely attend
ed as had been anticipated. although
President James T.. NIabon and COM
rittee from the New York Stock En-
change and prominent officers and attor-
news Of the Consolidated Exchange and
curb market were present
Tho principal argument in opposition
20 the Governors proposed regulative
legislation was made ~ John G.. Mil
burn. Of counsel for the BOARD Of gov
errors Of tn New York Stock Ex-
change. In addition to opposing tho in
corporal IN measure. he argued against
the bills designed TO require tho listing
Of quarterly ~eports OF corporations
whose stocks are dealt in on the .ex-
change. the measure which would per-
Exchange 10 deal with members Of other
exchanges and the legis ton drawn to
prevent manipulation of sales Tie also
objected TO the frequent use OF the WORD
felony" in the penalties provided for
IN many of the bills for violations Of
these provisions.
Attacks Compulsory incorporation.
Mr. Milburn declared that the compul-
sOrv incorporation Of the New York Stock
Exchange would be the most unfortu-
nate piece Of legislation that could be
placed upon the statute books"
Hc argued that state supervision over
tho exchange was unnecessary and that
more effective reforms could be accom-
pllshed by the board of governors Of the
exchange than by the state. He expressed
the opinion that the bill would make II
criminal offence for any man dealing In
stocks TO belong TO an association that is
not Incorporated.
Contending that there was nothing for
the state to examine except the private
dealings of the individual members. Mr.
AIlburn said the bill would not author
ize Tho state to examine these private
dealings"
Mr. Niiburus principal objection TO the
compulsory lstinG of quarterly reports OF
CORPORATIONS whose stocks arc dealt in
MAS that 10 statute this state might en-
act would compel corporations IN other
states TO file such reports, and that TINS
would result I'm brokers In this state not
being allowed 20 handle stocks of such
co~porations. with consequent great loss
in business. as he claimed, between IS
and 90 pcr cent Of the securities dealt In
ON the New York Stock Exchange were
those Of foreign corporations
Can't Compel One to Act for Another.
Against the bill which would compel
members OF tho New York Stock kx'
change TO deal with members of other
exchanges. he declared the relation OF
hroLcr and buyer or seller was purely
nersonal one. and 1.-The law cannot COM
mel ono man TO be broker for another
any more than II can compel one man 10
lend money TO another.
Arguing in opposition 10 the bill de-
signed to prevent manipulation or prices
hc asserted that the greater part OF the
COMMUNICATION came from buyers OUTSIDE
tho. exchange. who merely made trades
through exchange members. and that
this bill would not better condiuons' as
II failed to restrict or regulate individu-
al traders.
II. II. Boyeson. representing the Con-
solidafed Exchange, seconded MIR. MIL
burns arguments against the incorpora-
ton legislation. FRANKLIN Leonard Tor
the curb Market Association. urged that
the bill be amended so that its provisions
should not apply TO the curb market, or
"a any association dealing in the open
market
w. c. Van Antwerp. one OF the mem
bers of the New York Stock Exchange
who argued against the Incorporation DILL
invited the committeeman TO go to New
York and examine the exchange, ana
1.-THE efficiency Of it's rules Then he
declared, "you will find that In itself II is
doing everything that can be done TO pro-
tect the investing public, and that 1t ID
not as bad as public clamor sometimes
has painted it
Borrowers Opposed, Says Meyer.
Eugene Meyer. jr.. n governor OF the
Stock Exchange. opposed the bill which
would limit tho rate OF interest on
cell loans 10 Is per cent. He said all the
borrowers with whom he had spoken
were against IL.
Maurice l.. Muehlemann. secretary Oh
the Hughes Commission which inNesti-
gated the Stock Exchange, said that the
evil Won are seeking 10 correct cannot DC
roctifcd until the banking laws arc re-
formed. THIS bill, II passed. VIII not
operate
A statement from II. y. Pomroy'
former president of tho New YORK stoch
Exchange, was read in opposition 10 INC
hin proposing incorporation OF exchanges
citing figures 10 show that the exchange
through self-regulation had only sus-
famed a quarter or one per cent OF fali-
ures among its members, while the num-
her of failures of banks under state regu-
lstion Was five times az many
n was announced that the Senate and
Aseerblv Committees on Taxation and
Retrenchuent would give hearing on
Esrcb Y on the bill proposing 10 doupie
. ne tax on stock transfers.
Elk Senator Charles A. Towne ana H. H.
Boyeson spoke I'm favor OF the bill 10 pro-
hib,t any stock exchange from drafting
rule forbidding its members TO deal WIN
members of any other exchange or asso-
citation.
SMELLING TRUST ON GRILL