New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-02-13
.SULZER MEASURE WOULD
INCORPORATE EXCHANGES
Governors Stock Reform Plan
Gives Jurisdiction to Super
Intendent of Banks.
"DISCRIMI NATI0N" BARRED
Voluntary Associations Prohib
tied and Broker S Relations
with Customer Regulat-
ed in Other Measures.

/
Albany. Feb 1.-The state Superin-
! tendent Of Banks would have jurisdiction
over stock exchanges il a bill introduced
! to-day al the suggestion OF Governor sui
Zer becomes a law. The measure is de-
signed to bring about he Incorporation Of
/ the NJ York stock Exchange and other
! exchanges
The suggestion OF state supervision and
regulation Of stock exchanges by com
I peling their incorporation was opposed
I by committee representing the New
York Stock Exchange at a recent confer
encc with the Governor.
TWO other stock exchange reform meas
ures were introduced to-day by senator
StilWel and Assemblyman Levy. one
would compel broker 20 report TO Gus
toner the name OF the party with whom
/ he deals in the buying or selling OF stock
and tho specific time Of the sale or pur-
chase The other would make il unlawful
| for the New York stock Exchange TO
prohibit it, members from doins business
with OF for the members OF other eX-
changes
The Incorporation bill would require
/ all exchanges TO incorporate after Sep
/ tcmber 1. 1919 Voluntary associations for
I tho PURPOSE Of conducting exchanges
4 would be prohibited after that date. and
may be enioined az the suit Of tho Attor-
/ ney General. Members participating IN
exchange transactions would be guilty
I Of q misdemeanor. punishable 10y fine
| Of not more than 500 or imprisonment for
/ not more than one year or both.
| Exchanges would be- subject TO inspeo-
I ton. supervision and examination by the
/ Superintendent OF Banks iu practically
/ the same manner as banking corporations
/ are now supervised. I'll" exchanges would
/ be required 20 report 90 the SuporIntend-
| ent Of Banks within twenty days after
! the last business day ~ September IN
/ each year. under forfeiture Of ~" % day
/ for every dav such report is Withheld.
! The bill provides tn" method whereby
I unincorporatcd c.chauges may boz moor
/ porated upon vote Of a majority ~ the
/ governing board with the consent az a
/ majority OF the members tn" Slperin-
/ tendcnt il not authorized To refuse his
/ consent 10 Incorporation 81 any existing
/ exchange
/ Provision is made For TIE SUMMARY OK
! pulsion Of member VINO fails TO meet
his obligations. and the sal" OF his seat
5 ~ public auction FOR tho benefit Of his
creditors The bill also would permit an
exchange to dis .pilne its member ana
irlpose penalties. or -uWWarAj eNr"i d,
member 10, violation Of IN" rules rreui"-
! tons and bylaws Of the corporation
! Governor SG.z'r said
! on. II thes. bills IS desIsn~d to prevent
/ r, ., Ear az u,ss, hlc. q broker from s.ao-
/ ms iN any way 81 order "l q th~i"iII'i
4 Il = rrprrseIfed 10 me mat hf"h'ir VII
ct an order 90 buy certain stoch AZ 3"
| c.~fair HslIls o. at the market aud To-
stead Of Duying 10 A. mat hsui'' 'h's
shade t AN eighth. quarter. oi q i."h
/ and t-l the customer ihAl "ar 'H' 49,
: fL.v could do And thct maxi tn' di'i'i
/ eure and that applies also q" s''"s
/ have drawn thi- hi.. WIN " We" '' '''
! venting THAI
The othe- bin was drafted 60 ptrt"n'
: determination against other ~ HANGS
H. - represcntcd To- me that the New York
I stock Exchange refuses 20 execute o.
der- coming from the brokers oi u" OF
so'idated Exchange. thin" that r. q"
triust al .scrininatlon. To- my opinion o."
New York Stock ENchaug" a. @ quasi
/ rrbii,. institution. ana any iuah VINO nae
| a stock OF bond 90 sell. or mo wants 70
/ buv q stock OF bond. ought % nav" ~"
: ,ielf 10 do 20. Wu-tI-r ..t n a member
iof ne Consolidated LNchaUg~ or whether
ln Il. a member 81 Jones. Brown
I smith why they deliberately d.scriinl-
: rat. rg1lnsf tho members Of tnesr oth"f
} exchanges ls bcrOnd ~ k"n. nav"
/ drawn ills b'H win VIZ" ~ P'o''''
II i4 for Tie legislature Zoo determ'n'
lust what legislation BE- sh0 u" pdsr l9
/ remedy ,.Ne iu Oh" stock exchanges and
| Mace upon ia. rtatIt. books LEGISLATION
! i'm the interest 81 The public.
| The Governor said MS attention had
neen called 90 the controNersy between
the American Bank Note COMPANY ana
| the Sew York Bank NOtc company 70
the charge that the Stock Exchange VIII
not list securities unless they are eft
araved hv the former company. lie haJ
( Investigated the matter be sad, out was
/ at = loss 10 know how you can .cgisiais
an that matter" However, he sad. the
matter wa- being considered
! The Governor made pubic letter 70
c.lved from james =. Mabon. president
nj the New YORK Stock Exchange. Civ
ing the reasons Tor the recent activity
| ~ the American can stocks a matter to
which reference was made by the Exocu-
tive when the stock Exchange committee
called on him Mr.. Mabon reported that
the sale OF this stock vas bona hd'.
Assemblymsu Levy said to-niSnt that
! after a Joint hearing scheduled before tn"
Senat. and Assembly codes committees
an February ii. it Is planned 'to imme-
/ distelv take up the ten measures FOR inc
purposc Of appropriat. amendments -
en,. are considered necessary % ne nope
mat speedy enactment may follow.
,rte.e wrongs must be rightod Il once.
! 4, tho sam. time We must do IL ~ such
/ .,a,,,er a. not 10 iufict unnecessary
: ,a~dsblp upon honest and innocent men