New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-04-04
UNTERMYER PLEADS
FOR SUFFERS BILL
Faces a Hostile Committee IN
Urging Measure to lncorpo-
rate Stock Exchange.
QUESTIONS THICK AND FAST
Senators Show Their Lack OF
Belief That Incorporation
Would Do All the Good
Claimed for It.
lBy Telegraph to The Tribune. ]

BY Telegraph 10 Inc Ifihuiie.l
Albany. April Ex-Governor Suffers Stock
Exchange incorporation bill will never
get out Of the Senate Judiciary Commit
tee if the way the members got after
Samuel Untermycr at hearing this ar
ternoon is any criterion. They fired
fusilladc Of questions at him when nc
was telling Of the benefits that would
como from Incorporation. Mr. Untermyer
hclu that it would result I'm the better
regulation and control Of the Stock IN
change.
What good would incorporation ana
regulation OF the Stock Exchange do i
you couldn't regulate its individual meIn-
bers?" asked senator Murtaush. .
Mr.. I-ntormyer replied that he intended
TO suggest an amendment 10 provide for
the examination Of the books OF the IN
divdual members of the exchange.
Questions then came thick and fast from
about every member present. They plain
Is showed they did not believe this could
be done
"Thcy do it with auctionccrs,' said Mr
Untcrmycr.
wei. auctionecrs are different from
stock Exchange brokers'" chimcd IN Sen
ators Foley and Blauvclt at the saihe
time.
Declared Unconstitutional.
John g. Milburn. who appeared for the
New York Stock Exchange. said auction
Gers did a quasi-public business, while nc
business of the stock brokers was between
private persons. He held that, while auc-
tioneers could he licensed and regulated
II would be unconstitutional To examine
the books Of brokers in private business.
Mr. Milburn called Mr. Untermycr tho
arch exponent Of the incorporation BILL
and said he was the only person in a
conspicuous position he knew Of who was
for IT. adding: But he hasn't got THIS
committee under paddock and key.
The speaker was evidently referring 20
story that came out while Mr.. Inter
myer was acting as counsel for the Pujo
committee At Washington.
.'Where did YOU get that holly spoke
up the advocate Of the bill That's not
so"
81 believe IL came from a member Of
the committee" said Mr. Milburn.
Wasn't there something Ike that came
ont"
Mr.. Uutcrmyer denied that there vas
any truth to the Story. lie was sitting
at a table near where Mr.. Milourn Was
speaking.
I'm glad I'm on the same side OF the
table with him here. anyway said the
stock Exchange attorney. with broad
smile. lie has got no authority here
except the validity Of his reasoning
Denies Exchange Lobby.
Alr. Alnburn denied that the exchange
had ever maintained lobby al the Leg
islature.
Il would like TO know what good the
INCORPORATION OF the stock Exchange
would dc. anyway ne said. All this
talk about the benefits that would be
derived is shibboleth-nothing more
than words phrasee.
Mr. Tntermyer said be- would suggest
four amendments To the bill TWO col
them would meet objections made by
members Of the stock Exchange. They
provide that the present limit OF ele'e"
hundred members Of the exchange ana
the uniform commission rule shall not
be lnterfered with. Another amendment
would permit the examination OF the
books Of the members. and the fourth
REQUIRES the exposing OF profits OF NM
dlemen. brokers and directors OF q cor
roration iu the listing Of securities.
I'm his main argument Mr. Untermyer
said the mere act of incorporation. un-
by supervision and regula-
ton. would Toe worse than useless He
called attention TO one OF the provisions
of the Stilwell-Levy Incorporation bill
which. he declared made the measure
"hopelessly Ineffective This bill has
passed the Assembly. and its fate nov
rests with the Senate
Instead OF providing for the exam
inatiOn by the Superintendent of Banks
of the members" said Mr.. tntermycr.
1T provides for examining the books or
the exchange, which, as a body. does
not conduct transactions IN securities
and keeps 40 books except of its revc-
nues from members, rentals FOR quota
ton service and fees from listing Of Sc
suritipe