New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-02
Senator, Arguing for 10 Per
Cent Penalty, DenounCeS
Wall Street.
WOULD REDUCE GAMBLING
increased Assessment Upon
Incomes Running Above
S250,000 Annually
Is Proposed.
from -hc Tribune Bureau

Washington. Sept. IA denunciation OF
the New York Stock Exchange as place
where "unscrupulous men balance their
Wits was made by Senator Cummins. Cf
Iowa to-day in support Of his amend
roent 10 the tariff bill. imposing a tax Of
u per cent on all contracts for the sale
NJ stocks. bonds. products OF the soil or
commodities of any description in cases
IN which the seller IS not the owner.
The amendment was offered as a sub
stitute for the amendment 10 the Dill
which has been adopted by the Demo-
cratic caucus. upon the initiative Of Sen
ator Clarke. Of Arkansas. imposing tax
Of one-tenth Of per cent a pound on all
contracts Of sale for the future delivery
Of cotton.
Senator Cummins proposed that the re-
striction upon speculation should not be
confined 20 cotton transactions alone, and
that a prohibitive tax should be placed
upon all purely speculative barter and
sale At the request Of Senator Simmons
chairman Of the Finance Committee, the
subject was referred back 10 the com
rnittee. and will probably be made the
subject Of discussion in the Democratic
csucus which is 70 be held tomorrow
night.
In SUPPORT Of his amendment Mr.. Cum
Minis referred TO transactions on the New
York Stock Exchange in 1872 10 upho
his assertion that the bulk OF the ousl-
ness was little more than gambling. Inc
aggregate sales of railway stocks tha'
year. he said. were TO52. 900. and OF
Industrial and miscellaneous stocks w.
80. 500. eco.
Bulk Of Sales Fictitious
arh. entire mar value of all the railroad
stacks in the United states he said' Is
not more than s7.5O0.OOooo0. The railroad
stocks pretended 10 be sold represented
,bree-fourths or more Of all the ralIroal
stocks in the United States Ninety-0Ve
re- cent Of these sales were fictitious.
Not 10 per cent changed hands. 1et
,bree-folrth. Of the entire amount OF rail-
rav stock was sold on the New YORK
exchange alone. not taking into account
he exchanges Of Boston, Phiiadelphia
-bicaeo and other great cities Of the
country.
short sales constitute the greatest
menace 10 industrial stability and iinan-
,ial strength now presented 70 the Ameri-
IAN neople Sometime We must take up
the problem OF suppressing these glgan-
tic gambling transactions. and this Is the
time 70 do IT, We ought 10 employ me
taxing power TO put an end 70 the evil.
IF the tax is imposed next year there
will be but a little Of the gambling that
has been Haunted in the face OF 'he
American people II will not interfere
l.
DDS and the market places OF the country
will be made more secure Inc stooh
exchanges are not now places TOT the
actual transfer Of commodities. They are
places where INSCRIPTIONS men balance
their wits. The old Louisiana Lottery was
a mink tea compared with the orgy Oh
vice represented on the Stock Exchange
Senator Cummins quoted extensively
from tho report OF the House money
trust" investigating committee IN support
Of his statements. The great wee VI
short selling" he said. is that II creates
z motive on the part Of the seller 70 ce-
praciate the price OF the thing sold III
order that he may make profit. II the
seller actually disposes Of the article soIu'
he added. there is no purpose on MS part
10 depress the price.
Democratic leaders Of the Senate have
decided upon a compromise plan OF IN
creasing the tax upon swollen incomes 70
alav the revolt with which they are
threatened BY the insurgent element III
their own ranks. This will be taken I'D
BY the Democratic caucus which has oeen
called for tomorrow evening.
The plan decided upon By the majority
members OF the Finance Committee pro-
vides for a tax OF per cent upon IN
comes Of from 10000 TO $4,000. 5 per
cent on incomes Of from $4,000 70 $4,000
s per cent on incomes of from 10000 to
100000. and I per cent on incomes above
100000 The per cent is not 10 be i'm
posed until the million-dollar mark is
reached. and the lower rates will prevail
under that figure.