The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-09-02
IOWA SENATOR
WARS AGAINST
SHORT SELLING
Cummins Makes Speech ir
Support of Amendment to
Tariff Bill Proposing 10
Per Cent Tax.

WASHINGTON. Sept. IL" Short
selling on the New York stock ex.
| change, the Chicago Board of Trade
and on cotton, produce and stock ex-
changes generally was attacked by
Senator Cummins in the senate today
as one Of the greatest vices' of the
day and as "a menace that threatens
the industrial and financial strength Of
the country
Supporting an amendment he had Of
| fered to the tariff bill, proposing a 10
per cent tax on all trades whore the
seller did not actually own the prop
erty sold, Mr.. Cummins, backed by
several other Republican senators, de-
livered vigorous criticism of stock
and produce exchange operations and
urged that congress do it's utmost TO
discourage or prohibit fictitious trad
ing, which he characterized as "gam-
bling
The Cummins amendment was Of
futures tax proposed by Senator Clarke
OF Arkansas, which would impose
tax OF one-tenth OF l cent per pound
on all trades IN cotton for future dehv
cry. Senator Cummins insisted that
1T was more important to restrict and
prohibit fictitious trading in securities
and general produce than simply to
regulate cotton trading.
Referred to Committee.
The entire question Of cultures 3"
finally was referred back to the senate
finance committee for further consid-
Grafton. Transactions on the New
York Stock exchange for 1912 were
cited by the Iowa senator to show the
extent of the gambling" which he
declared was breaking down the moral
fiber of the business community and
saddGng immense burdens upon the
public in the way of fictitious values in
stocks. The sales Of stock of some
railroads and industrial corporations,
he declared, had been from ten to as
high as twenty-five times the entire
stock issue Of the road, while but
small proportion Of stock actually had
changed hands.
Most Of the sales on the New York
stock exchange are fctitious,' he said.
Thousands Of men have been wrecked
in fortune, and their moral fiber brok
en- down by the methods employed. Tt
has been the chief factor in imposing
on the people great volume of wa
tered stock upon which they must pay
dividends for years to come"
Watered Stock.
tOne-half Of the railroad stock in
the country is water, at least it was
at the time it was issued. More than
L,lf - %h, -f, 30 oil l,r
dustrlal corporations has no foundation
in value. 1t represents the immoral
disposition and the marvellous audacity
Of the men instrumental in putting it
out. These stocks, with the burden
they impose on the public, never could
have been foisted on the public but
for this method of short sales.
Senator Cummins declared the stock
exchange should be restricted to actual
sales. GAS it is now, it is not place
for the transfer of actual commodi-
ties,' he added cit is a place where
experienced and reckless and unscru-
pulous men balance their wits, 1t is
place where men of great mental ca
pacity, and audaclty as well, fight
the means which ought TO influence the
price of commodities, but every means
which may tend to affect the price of
things in which they are dealing. -
He declared the old Louisiana lot
terry was |'pink tea compared with
this orgy Of vice. represented in the
stock exchange.
"Fictitious trades in Canadian
Pacific. Union Pacific, United States
Steel, American Beet Sugar, American
Can and many other corporations were
cited by Senator Cummins as showing
the extent of what he termed the
'Fgambhpg operations.
Senator Cummins took up the his
tory of specific stocks to show the in
huence Of gamblers, who sought only
change,
His figures covered the year 1911.
"'The Atchison, Topeka & Santa Fe
had $16s, 100000 of stock listed on the
exchange" he said. AT the end of
the year it's stockholders had changed
but little, yet 192,ooo,ooo shares had
been traded in.
1.-THE stock of the ST. Paul road was
| listed at a116, ,3as,000. yet the trades
amounted to Sl49,277, 900, and the
price ranged from 99Ss to 1l7Ss a
| share
"'There was no reason for this iuc-
| tuation, there was but little change
in ownership" declared Senator Cum;
minis. ''The Reading road 8 capital
stock amounted to $40, ,4s0,000, he
tv-five times that, or over $1,ll4,0O0,
| 600. Stock exchange brokers pretend
| ed to sell three times the entire CAPT
tai stock Of the Lehigh Valley road,
and passed back and forth $119.000.o00
| of Great Northern stock. when there
was but little change of ownership