The Birmingham age-herald., 1913-09-02
Vigorous Criticism of Fic-
titious Trading by Sen
atOr Cummins
OFFERS AMENDMENT
TO PROPOSED TAX
Proposes 10 Per Cent Tax on All
Trades Where the Seller Does
Not Actually Own the
Property Sold
MONDAY IN CONGRESS.
SENATE.


SENATE.
Resumed consideration of tariff
bill
Senator Clark of Arkansas speaks
on cotton futures amendment.
Senator Cummins introduced
amendment to place 10 per cent
tax on Stocks bonds cotton
and agricultural product sales.
Adjourned at 6:07 p m to 10 a. m.
tomorrow.
Not in session. Meets Tuesday.
Washington, September 1.-"Short
selling on the New York stock eX-
change the Chicago board of trade,
and on the cotton and produce ex-
changes generally We're all named as
"one of the greatest vices" of the day
and as 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 where the
seller did not actually own the property
sold Mr.. Cummins, backed by several
other republican senator's, delivered a
vigorous criticism of stock and produce
exchange operations and urged that
Congress do its utmost to discourage
or prohibit, fictitious trading. which
he characterized as gambling"
The Cummins amendment was offered
tax proposed by Senator Clarke OF
Arkansas. which would impose tax
of one-tenth of l cent per pound or
all trades in cotton for future delivery
Senator Cummins insisted that it was
more important to restrict and prohibit
fictitious trading in securities and gen
erai produce than to simply regulate
cotton trading
Referred to Committee
The entire question of futures" final
ly was referred back to the Senate
hnance committee for further consider.
alton.
Transactions on the New York stock
exchange for 1912 were cited by the
Iowa senator to show the extent of tn,
gambling" which lie declalkd was
breaking down the moral fibre of tht
business community and saddling i'm
mense burdens upon the public in the
way of fictitious values in stscks. The
sales of stock of some railroads and
industrial corporations, he declared, lsld
been as high as 25 times the en-
tire stock issue of the road, while bui
a small proportion of stock actually had
changed hands.
Most of the sales on the New York
stock exchange are fictitious," he said
Thousands of men have been wrecked
in fortune and their moral fibre broken
down by the methods employee 1t has
been the chief factor in imposing on
the people great volume of watered
stock, upon which they must pay divi-
dends for years to come.
"One-half the railroad stock of the
country represents water, at least il
did at the time 1t was issued. More
than one-half the stock of all the larg-
er industrial corporations has no foun-
dation in value. 1t represents the i'm
moral disposition and the marvs lous
adaucity of the men instrumental in
putting 1t out
Short Sales Responsible
These stocks with the burden they
impose on the public could never have
been foisted ON the public but for this
method of short sales"
Senator Cummins declared the stock ex-
change should be restricted to actual
sales.
''As it is now it is not place for the
transfer of actual commodities ht
added. at is a place where experienced
and reckless and INSCRIPTIONS men bal
ance their wits. 1t is place where
men of great mental capacity and au.
dacity as we'll fight a battle of supre
macy, employing not the means which
ought to influence the price of commod
tiles. but every means which may tenc
to affect the price of things IN which
they are dealing
He declared the old Louisiana lottery
was "a pink tea compared with thi.
orgy of vice represented in the stocl
exchange.
The progress on the tariff bill was lin
tied to the consideration of many item
in the chemical, earthenware and othe
schedules of the bill. which had beer
passed over in the first reading of tn,
measure
Excessive Duties
Senator LaFollette insisted that tw,
items in the chemical schedule car
ried excessive duties
On one OF these, dextrine, made from
potato starch, the senator's suggestion
was accepted and an amendment wa,
Incorporated into the bill reducing tn,
tContinued ON paEe Eight