New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-03-07
&[S CITY MENACED BY
STOCK EXCHANGE BILLS.
rbamber Of Commerce Against
Incorporation and Doubled
Tax on Transfers.
,ppoSED TO "USURY" LAW
Uenort Calls Measures Pending
At Albany iii Considered
legislation and Danger
TO Business.

III considered legislation" is the term
.o,lied by the Chamber of Commerce TO
.,,.a bills pending in the Legislature.
-,ose are the measure dealing with the
.,,,sion of the law of usury to call loans
.'.,rad bv collateral. that which provides
=. toe incorporation of all stock ex-
.,.rces and that which increases the
.-.,sfer tax on sales of stocks from
.,o cents 70 four cents on 500. The eX-
.,.ssion of the members views on the
object was made in the form OF resolu-
,ons adopted at the regular monthly
.,4s,,ng OF the chamber yesterday, fol-
,or;ng the presentation Of the report OF
,sa committee on finance and currency.
While the committee in Its report,
,aonted with one dissenting vote. de
.sred itself in sympathy with attempts
"a remedy abuses which may exist in
.o,,sction with stock exchanges. IL held
hat these bills. in the words OF Governor
,r1zsr. might result IN serious harm TO
,sa financial supremacy OF the state. have
!. tendency 10 drive capital away from
New York and might disorganize the
large operations Of legitimate business
now centred in this state TO the detriment
!, ., rs citizens and the commonwealth
generally
Tbe proposed usury bill makes void and
usurious any contract for the loan of
money upon demand at rate of interest
srceedIng - per cent year. This was
declared 70 be economically unsound."
tending to aggravate rather than amelio-
ra,s existing conditions under the bank
United States.
Says Congress Should Act.
The committee SAYS further:
Until Congress shall amend the bank
Ing system Of the United States. in some
such manner as was urged by the cham
her in 1906. and make possible the crea-
ton Of a market for the rediscount OF
nouid banking assets. the New YORK
money market must remain liable 10 alb
normal credit conditions. Any law limit
INK the rate Of interest that may be
charged for advances TO protect endan-
sered property I'm times of stress would
cause serious loss to investors and be
otherwise harmful
The incorporation of stock exchanges Is
opposed as "unwise and unjust and could
only result I'm Gripping the management
and lowering the tone OF the stock eN-
change" After saying that it is unable TO
discover any advantages to the public
from incorporation OF the exchange, the
repor, continues:
we find. on the contrary. reasons Tor
believing that such Incorporation would
- preiudicial to the interests of botn the
public and the New York Stock Exchange.
This exchange is one of the greatest
security markets in the world. Transac-
tons on its floor get the widest publicity.
The members are liable TO instant dis
apllne if they violate the code Of honor
able conduct which they themselves have
created AS result It's record OF mem
hers transactions is accepted without
question throughout the world In our
Judgment it is most important that the
present high standing Of the exchange
should not be endangered We. therefore,
condemn the proposal that it be incorpo-
rated. for as a corporate body its internal
organization, its ethical standards and its
discipline of members would be subject 70
continual review by the courts and re-
vision by the Legislature, with the result
that litigation would be encouraged, the
disciplinary authority OF the exchange
weakened and its standard Of business
behavior debased."
Against Higher Transfer Tax.
On the measure 20 double the transfer
tax on stock sales the committee declares
that as d revenue measure 1t Will be dis
appointing, reducing the volume Of sales
and driving much business from this city.
Thi. the committee holds. would hamper,
II not positively check, the commercial
and financial growth Of New York CITY
and stimulate the development of stock
exchange business in rival cities at the
expense o. New York.
The committee on finance and cur
reney Is composed OF George h. Cortely'u.
President OF the Consolidated Gas Com
pany; Joseph French Johnson, dean OF
the New York University School Of Conn
meree; Francis l.. Hine, president Of the
First National Bank: Albert II. Wiggin,
President OF the Chase National Bank
and Mortimer i. Schif. Of Kuhn. Loeb
& Co.
The chamber also adopted resolution