Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-09-02
sojSoRT SELLING" DECLARED TO
DE MENACE TO ENTIRE
NATION.
uRoes TARIFF AMENDMENT
TAXING ALL FUTURE" TRADES
ehor& selling Termed Mere Gambling
Cites Sales 1otaling Twenty-Five
Times Entire Capital Stoek-Stoeks
Watorod % Result Of Overseilins-
Many Fortunes Lost.

warrington, sept. Z.-1u q vigorous
speech in the senate yesterday after
noon in which he assailed the business
Of short selling OF stocks and agricul-
tural products Senator Curlmins de-
clared many people We're constantly
being ruined by this speculation. He
cited the evil effects in Des Moines
alone as an illustration.
Senator Bristow asked Senator Cum
MINIS II more people were ruined by
speculation in short selling than had
been ruined by the Louisiana lottery.
Infinitely more" said Senator Cum
Minis. 'At least 200 people in my home
city spend all they can make habitually
specializing on the stock exchange ana
the board Of trade
Senator Cummins urged his amend
ment to tax short sales Of stocks and
agricultural products. He presented
tables to show that most Of the sales
on the New York stock exchange were
fictitious that many times more stocks
were sold and traded in than existed
and that instead of short selling tend
SPECTATORS used every method TO dis
turb prices and cause them to nucIu-
ate.
Supporting an amendment he had
offered to the tariff bill. proposing 10
per cent tax on all trades Wnere 1hs
seller did not actually own the property
sold. Mr.. Cummins. backed by several
other republican senators, delivered
of- n
exchange operations and urged that
congress do its utmost to oiscourase
or prohibit fictitious trading. which
he characterized as gambling.
See Cotton Gambling.
The Cummins amendment was OF"
sered as a substitute for the cotton
futures tax proposed by Senator CLARK
OF Arkansas. which would impose tax
OF one-tenth OF cent a pound on al!
trades in cotton for future delivery.
Senator Clarke argued that the New
York cotton exchange. controlling the
price for the whole world. and its
parasite" the New Orleans exchange,
were no more than gambling institu-
tionv. Actual deliveries Of cotton on
the New York exchange. he said, were
only one half Of l per cent Of the sales
He pointed out that the democratic
plattorm condemned gambling in agri-
cultural products.
Senator Cumm,ns insisted that It
was more important to restrict and
prohibit fictitious trading in securities
and general produce than simply 70
regulate cotton trading.
The entire question Of futures" fin
ally was referred back to the senate
finance committee for further constd-
eration.
Sales Exceed Stock Issue.
Senator Cummins took up the history
OF specific stocks to show the influence
of gamblers, who sought only their own
advantage on the stock exchange" His
figures covered the year 1912.
THE Atchison, Topeka & Santa Fe
had S16s,430.o0O OF stock listed on the
exchange" he said. AT the end OF
the year its stockholders had changed
but little, yet 12s.o0O,0o0 shares had
been traded in
THE stock of the ST. Paul road was
listed at s11s,34s.00o. yet the trades
amounted to s14s,277 600. and the prices
ranged from 1914 to 117& share
There was no reason for this fuctua-
lion, there was but little change in
ownership.
Watered Stock Result.
Most Of the sales on the New York
took exchange are fictitious" he said.
Thousands of men have been wrecked
fortune. and their moral fiber brok-
n down by the methods employed It
as been the chief factor in imposing
n the people great volume Of watered
took upon which they must pay divi-
ends FOR years TO come
One half the railroad stock Of the
ountry represents water. at least II
id at the time 1t was issued. These
tocks, with the burden they impose
\ the pun,ic could never have been
oisted on the public but for this meth
~, fas