The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-28
Sulzer Says Stock Ex-
change Abuses Must
Be Stopped.
SENDS MESSAGE
TO LEGISLATURE
Warns Lawmakers That Unless
Evils Are Put Out of Existence
They Must Not Be Surprised
if Federal Government
Takes Hand-His Rec
concentrations.

Albany. y. Y. January 27--State
supervision and regulation of the New
York Stock Exchange and other stock
exchanges are advocated by Governor
Suizer In a message sent by him to the
Legislature tonight.
The time is ripe. in the Governors
opinion. for the State TO stop IN and
end fragrant abuses. shifty schemes and
clever com binations 70 catch the I'M
wary and TO mislead the public
To effect this. he recommends the
enactment of d group Of laws. at least
one Of which viii provide imprisonment
as a penalty for its violation These
laws, the Governor says, should apply
70 certain practices. which have been
shown 10 exist by the PujO committee
and other investigators.
No Room for Doubt.
The testimony Of some of the gov
errors 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 thOse measures
that Will cfcctually eradicate the evils.
II is now the obvious duty Of the State.
IL seems 10 me. 70 devise the remedies
If the State neglects 20 do its plain
duty, the State should find no fault If
the Federal government acts in the
premises.
Among the measures which Governor
Sulzer would have enacted into law are :
a law 70 distinguish clearly proper
transactions of purchase and sale from
those that are the result of com bina-
tons to raise or depre=s arti1cially the
price of securities without regard to
their true value or legitimate supply
and demand.
A law to prohibit brokers from selling
backward and forward among them
selves blocks OF particular stock with
intent 10 deceive or mislead outsiders.
A law to prohibit brokers from selling
for their own account the stocks they
have been ordered to buy for their
customers at the time the customers
orders were executed.
A law clearly prohibiting insolvent
brokers from continuing to buy and sell
after they become insolvept-
Make 1t Criminal Offense.
A law making il criminal offense
Ito issue any statement or publish any
advertisement as to the value of any
stock or other security, or as to the
financial condition of any corporation
or company issuing or about to issue
stock or securities. where any promise
or prediction contained in such state
ment or advertisement is known 20 be
false or to be not fairly justified by
existing conditions"
Governor Sulzer also recommends.
but leaves to the Legislature for decision
changes in existing laws and the enact
ment of new laws governing short
sales. the hypOt hecation of securities.
bucket shops. usury, under which head
he classes the raising of call money
rates TO more than per cent, the rela-
tons between exchanges and the con-
solidatiOn of exchanges
Governor Sulzer tonight said that
bills EN- bodying his specific recommended
tions are being drafted for Introduction
in the Legislature
Tho Governor message was re-
ferrcd without comment in both houses
to committees.
Senator Wagner, the ajority lead
er. announced that he would confer
al once with legislators and others in
terested IN the question. but that no
action would be taken until all sides
have had fair bearing