New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-02-06
EXCHANGE REFORMERS
BUSY IN TWO CITIES
Governing Committee Here
Adopts Rule to Prevent Ma
nipuIation of Securities.
AIMING AT FALSE VALUES
Other New Regulations Prom
ised to Do Away with Wall
Street Practices Con-
demned by Public.

The governors Of the New York STOCK
Exchange At a specia! meeting Yesterday
adopted resolution covering the most
definite step yet taken toward the clint
nation of abuses which have been the sub
icct of widespread criticism 10y legisia-
tive committees and the public. The re-
form. which was unanimously adopted
has 20 do with the manipulation of securi-
ties and the creation Of fictitious prices
through what are known in Wall street
az matched orders" ana wash sales.
II was pointed cut by President Mabon
that tids was only the beginning OF other
reforms which were being considered. ana
which would come before the governors
i'm due cours. Ina view Of this statement
q Is believed Tho recommendations OF
Governor Sulzcr may never reach leSisiA-
tive enactment. a. the exchange has ap-
p8rentiy taken IN" matter IN its own
hands and promised 10 strictly enforce"
its present rules and adopt now ones 10
meet changing conditions. The statement
mad. Yesterday by President MabOn fol-
lows.
For some weeks the committees have
been AT work upon the rules OF inc on
change for the purlpsc Of determining
what chan or additions can Dc MANI
to prevent operations ana transactions IA
securities on tn eNchaDIs when ma .
hrrn criticised. The conclusions Of the
committees are 10 bc submitted from time
To- time. as soon rs they arc Formulated
20 the governing committee Tor hs actioh
The subject which has primarily occu-
ID t-l. ia fuilaI
manipulation 81 securities. The commit
tee having that subject IN charge made
its report respecting IL AT "A special meet
ing Of the governing committee this NJ
'ernoon. and unanimously adopted this
resolution:
That 10 stock Exchange member Or
member Of a stock Exchange nrliL Sha'l
give. or with knowledge "Accui', 'IueI y
FOR the purchase or sal" OF Se'ui Illc'
which would involve 10 change OF owner
ship Tn. punlshmyut FOR this offence
shall be as prescribed I'm Section : OF
Article % OF the constitution regarding
fictitious transactions.
section : Of Article NNIII Of the con-
s'itution reads. Fictitious transactions
a,c forbidden Any member violating
this rule shall be liable 10 suspension
for e period not exceeding twelve
months e..
Exchange houses that The Governor
recommendations FOR maximum rate
Of per cent on call money viii do much
20 remedy this phase OF the situation.
The present conditions prevailing ~ the
call money market began about twenty
a.. years ago. AMI were established
largely through the ins,rumentality of
Iohu - Herman. Before that time the
state laws against usury were slide
tracked b, charging not only the fun 6
per cent rate allowed but also COM
mission. which sometimes ran ~ nigh as
] per cent on g days borrowings
wagons \ wei,-dresscd man who ap-
pcared TO exercise authority in tnc cou-
duct or the place. and whom the rm-
ployes called MI Emory" protested
violently 10 Inspector Cuhalane when the
police started 90 carry out q heavy
mahogany table Emory" said the table
Vas not used FOR gambling purposes. but
VAS his dining table The table went
into the police van
II was said last night that tie same
costly furnishings 'uat delighted tue eNc
az Garfield patrons ~ the good old
days' were SIN iu thr house al No ;
Eost ifth street Paintings by Whistler.
rare tapestries. carpets fashioned I'm the
most skilled looms of i}aGdad and Con
sian;inople tines" and hundred other
art treasures stu. sdorr tic walls and
tie floors