New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-28
moi led the governors 10 exercise theif
power of examination prior To l"i'"i e.
He continues:

no, lod the governors 20 exercise thelr
mower Of examination prior To taliuie''
lie continues:
Tho men who have been iutrusted WIZ,
the power 10 regulate the opeIa.o" AZ
these exchanges have sometimes -
nlaVed inexcusabic laNity in tnelr 49,
10 inc public. frequently snIpIis.hs 80
pacity 10 conduct the insututions 81
crly and again an unWil ., ,irinSinIes of
trade which they profess. SlnCc '"tt
Lave rallied or refused 10 cNtIS'SJ ,C'is
power 10 prevent. such clearly N'T yp1st
abuses the authority OF the go"
he invoked 10 exercise that poWeiati,,,r
IL seems to me the necessary maj ~
of these exchanges is often employed VIZ"
impUnitv BY or through members 10 N'''
init depredationS upon the pupnC' on.
ThTsI Things must be stopped; an C',
ligh,enod public opinion demands II. NJ
rXchancC i'm which they occur ceaSeS ~
be a legitimate market and pe'o''''H
powerful mulcting instrument ...... g.. OIL.
What is a subject OF Just criticism = "
concerted movement artiicidliy 10 tit
or deprcss the price OF q S'och III -.
10 enable those participating III tLt IT, i,..
mcnt 10 realize a resulting Npt' una i"', a.
tro6t \ law should be promptly eld'tru
that will clearly distinguish proper trdi,9-
actions OF purchase and sale on w ,Goe
hand. from those, on the otuer Hdhui, rr,',
arc Tho result Of combinations deslsnt u
20 raise artifcially or to depreSS the pII,'
of securities without regard TO thelr u1'
,al,4 or TO the real state of IeSluul"''
demand and supply.
Power Of the State
Governor Sulzer holds that the powc"
of the state to enact legislation TO cure
existing evils in such business anu
place it under the regulative admins
tration of one or more of its depart
mcnts is undoubted. and supports MS
contention by quotations from Cni'ed
States Supreme Court decisions. lie
goes on:
So long rs transactions are not cal
cuIatcd or intended to miSlcdo or dtccl'C
and do not infringe upon the rIshtS "
others they should not be- lnttrcIcu WIZ
but transactions that are frdudulent III
their nature end amount to fraudulent
schemes or devices should bc Vigorously
urge upon you the prompt enactment
of laws to end these ShiftY schemes anu
IN forbid these clever combinations 20
catch the unWdry and 10 mlSi'du '"c
public. -, g.
The subject of so-called short sales Is
ouo r,ouiring your serious rOnSlucldt1o'''
s contrart Ia sell property which man
does not own at the time. nut VIII WI.
ne can provide himself IN time loI lnt
performance of his contract Is S'"ci ~
transaction throughout the EsIi,u5,
branches Of business. and - not unit
on peculiar to stocks or securities SoIi OF
exchanges The hest views seem 20 ~
that short selling in and of ltSel j. no.
= wrongful on rcDrehcnSible thlnS' put !,
Is the abuse of this practice tud' "''"
injury To the public. - ,.,,is-
Your efforts i'm Tn" enactment o. ieSN
lttion should. Therefore, ne 10 uidN VIC
obstruction SO that what VIII he con-
drmned is the perveTSiOn of lCgitllal'
form of business TO improper ends 'oiH-
b;nations of men through short selling 10
depress a stock artifcially Tor, tne pui
pose Of buying 1T i'm 10 compieN III H.
short sales at an unWarrHhteuN 80
price and thereby realize a pfonl w :.
is not the result Of natural prices. bu' W
= condition fcttiOuSly created by 'nt'I-
selves is the feature of the matter "h''"
il to he condemned. IN,
The entire subject should receive III
mediate consideration al your hdhus. au.
ali necessary modification Of cNlsthe NV
for the protection of the investing pun,
should be promptly made, ana an Az
uroductivo of such losses WlCh arc HVN
merely a matter Of civil LIABILITY shouIu
bc brought under the condemnation OF '"'
lenal law. &c.,, hitch ,,.ill
require Of brokers the execution Oh Hlu>' =.
given them 50 that. whether p"TchaNt
an sales. they shall be purchases from
ar sales 10 independent persons ana -
that i'm no case shall a broker employer
To- buy for his customer be the Stllrl on
his own account. or broker OF SuiiI'
other principal of his own. without piS
Il of tho fact