The citizen. (Honesdale, Pa.) 1908-1914, 1913-01-08
STOCK EXCHANGE
TO Be REGULATED
Profits Of Promoters to Be
Made Public Is Plan.
MORGAN THINKS IDEA GOOD.

PuJo Probers OF Alleged Money Trust
Show How Speculation and Manipu-
lation Could Be killed-lnterstate
Commerce Laws to Be Used on Wall
Street Affairs,
The questions asked by the Pujo
committees counsel clearly indicated
the program of reform which the COM
mittee had in mind in it's probe of the
alleged money trust, in some cases
positively enough to make it practical
ly certain that they will be included
in the committees recommendation.
There was one reform of which there
seemed to be no doubt of the commit
tees Endorsement, and that was com.
pulsory publicity in regard to promo
ter's profits on stock issues listed on
the New York Stock Exchange.
]. Pierpont Morgan acknowledged OF
the witness stand that such regula
tion would be beneficial, but he doubt
ed the practcability Of attempting to
enforce it. He thought that such an
attempt would result in the organiza-
tion Of another exchange.
The committee seemed certain also
to make some recommendation looking
to the curtailment or abolition Of ma
nipulations of the stock market.
Several suggestions have been made
by the committee in the course Of the
hearing. One was that members Of
the New York Stock Exchange be pro-
hibited from executing orders for i'm
portant operators who are known to
have manipulated the market An
other was that the exchange compel
the actual delivery Of the stock at the
New York exchange clearing house.
From what has already developed,
however, the indications are that the
committee itself will not attempt to
lay down any rules as to how manipu-
lation shall be wiped out, but instead
will impose the duty on the RESPONSE
BILE authorities of the stock exchanges.
Will Use Interstate Commerce Law.
1t is known now that the committee
expects to make reforms Of this char
acter possible through dealing with the
New York Stock Exchange as an insti-
tuition engaged in Interstate commerce.
To compel the incorporation of the
exchange and to forbid the transmits
sion of quotations over the telegraph
wires unless the exchange adopts GER
tain reforms is apparently the scheme
on which the committee is at present
proceeding.
Counsel for the committee in the
course Of the hearings thus far has in
dicated also that the investigators are
seeking some method of preventing the
flow Of money to Wall street during
periods of stringency in the money
market. The suggestion has been made
on several occasions that the limitation
Of the interest to be charged for call
loans might reach this condition, but
obviously this would be a matter for
state legislation.
Mr.. Morgan was of the opinion that
nothing could prevent the attraction of
money to Wall street for speculative
purposes 30 long as Wall street was
willing TO pay high rates. He contend
were closed against Wall street by
usury law the money for speculation
would be obtained from Europe.
As to the practice Of clearing houses
the investigating committee also seems
to have some pretty definite views.
1t is practically certain they will
recommend that the state and national
banking authorities have the power to
review the judgment of the clearing
house In cases where a member de-
ciines to clear for nonmember bank.
There Is strong likelihood also that
the committe will recommend the dis
continuance of the charging Of COM
missions on the collection on out of
town checks and also that any bank
that Is absolutely solvent and whose
condition is approved by the state or
national banking authorities shall be
admitted to full membership In the
clearing house.
1t was learned early that the com
mittee planned to call some of the
younger members Of the firm of ]. p.
Morgan & Co. and 10 question them in
detail In regard to certain transactions.
The committee in examining Mr.. Nor
can sought chiefly to obtain his gen.
eral views. and it planned later to take
up with Mr.. Morgan's partners transac-
lions on which it is seeking light.
Morgan Disarms Suspicion.
The general impression In Washing
ton, however, is that Mr.. Morgan's
frank and forceful testimony has been
blow to the money trust end of the
inquiry and that the committee from
now on will make little progress in try
Ing to establish the existence OF a mo-
nopoly OF this character.
1t Is expected several witnesses will
be called who charge that they have
been Disseminated against IN their ef-
forts to obtain capital for new enter
prtses. 1t is reported that the Ten
nessee Coal and Iron Transaction. Ar