Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-01-28
New York Executive Believes
Time for Supervision Of Ex-
changes Has Arrived to End
FIagrant Abuses,
CALLS ON LEGISLATURE
To IMMEDIATELY ACT
Sends Special Message to As
sembIy in Which He Points
Out Grave Conditions Harm
full to Public,

IB, Morning Journal special Leased Wire.l
Albany y. ". Jan. 2l.--Stdte su-
u.rrisfon ana regulation OF New York
stock exchange and other stock eN-
changes are advocated by Governor
sulger in a message sent hy MIN 20
thr legislature tonight. The time Is
ripe. in the governors opinion. for the
state 10 step In "and end fagrant
abuses shifty schemes and clever
combinations to catch the unwary ana
to mislead the public
TO effect tnis ne recommends the
enactment OF group Of laws, at least
on. az which shall provide impfison-
menf as penalty for its violation.
These laws. the governor saws should
apply 20 certain practices which have
been shown 20 exist by the fulo
committee of the house Of fepresen-
tatlves and other investigators.
"The testimony Oh some OF the gov
crnors Of the exchanges Governor
Sulzer says. leaves no doubt IN the
minds Of men OF Judgment that the
exchanges have been either incapable
or unwilling TO devise measures that
will effectively eradicate the evils. II
now is the Obvious duty of the state
it seems to me. To devise the remedies.
II the state neglccts TO do its plain
duty, the state should find no iauH
If the federal government acts In the
premises"
Among the measures which Gov
crnor sulzcr would have enacted into
law are.
law to distinguish clearly proper
transaction Of purchase and sale
from those that are the result Of COM
hinations to raise or depress artlliel-
ally the price 81 securities without re-
gard to their true value. OF legitimate
supply and demand a law to prohibit
brokers from selling backward and
forward among themselves blocks of
a particular stock. with intent 70 de-
ceive or mislead outsiders; law 10
prohibit brokers from selling for their
own account the stocks they have
been ordered 20 buy for their Gus
toners at the time the customers or
ders are executed: a law clearly pro-
hihitine insolvent brokers from con
tinuing to buy and sell after they be-
come insolvent: a law making II a
criminal offence To issue ANY state
ment or publish any advertisement
as to the value OF any stock or other
security or as to the financial eondi-.
ton of any corporation or company
issuing OF about 20 issue stock or Sc
curltes. where any promise or pre-
dictiun contained IN such statement
nr advertisement is known to be false
or to be not fairly justified by existing
conditions.
Governor sulzer also recommends.
but leaves to the legislature for deei-
SION. changes In existing laws and
The enactment Of new laws governing
short sales. The hypotheeaiion Of So
curties 10y buckctshops. usury fun-
der which head he classes the raisint
Of call money rates to more than 81
per cent from the relations between
exchanges and the consolidation Of
exchanges. IN his message he says
IN part
"'rhat evils requiring immediate
remedy exist Is beyond dispute These
evils are easily discovered and readily
stated but the remedies to be APP
piled require deliberate consideration
ana the most dclicate adjustment to
meet the situation. so as to benefit
the public at large and at the same
time not disturb economic and indus
trial conditions.
II is demonstrated that The mem
hers of the exchanges are aware Of
these occurrences. but ignore them
manifesting q surprising indifference
to the public interest and to the repu-
tation Of the exchanges which often
is besmlrehed by these vicious opera
tons. 1t now is conceded by some of
the officials that a gambling taint is
present IN some of the transactions--
a concession that confirms the general
opinion II has been established that
transactions IN them nature fictitious
which make manipnlations possible,
are carried on without serious at
tempts at restraint.
Abuses Of the mechanism and vio-
lations Of just equitable principles Of
ttading ore treated lcniently instead
Of being rgorously condemned
The testimony hefore committee
Of the house of representatives further
shows that while In cases members
have been punished for extreme Vio-