The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1913-03-06
II DNNTV|-
To End Stock Gambling.

y w 'llt .NtO I vi n 6io'h CAV llAAlct
the committee recommended.
THAT congress prohibit the trans
mission by the mails or by telegraph
or telephone from one state to an
other Of orders TO buy or sell or
quotations or other Information con
corning transactions on any stock
exchange, and also prohibit national
banks from buying or selling or lend
ing upon the security of stocks or
bonds listed ON any stock exchange
unless such exchange were a body
corporate of the state or territory
in which it is located.
Require corporations whose Sc
curities 1t Ohe stock c%Xchange) lists
the report continues, 10 make a com
pletc disclosure Of their affairs, in
particular any commission paid TO
promoters, middlemen or bankers.
out of any such security, interest or
the proceeds thereof.
Require a margin Of not less than
twenty per cent on all purchases OF
stock.
Prohibit 'Wasli Sales
"Prohibit as far as possible the
execution of simultaneous or sub
stantially simultaneous orders pro-
ceeding from the same person or per
sons to buy and sell the same securi-
ty for the purpose OF creating AN
appearance of activity therein, and
any orders. the purpose OF which is
to initiate or dcpress the price of any
security.
%"Prohjbit members from pIedginE
securities purchased and carried for
. .,,,,a,.,a,. T~. 49, ..,. .,..,-
than the unpaid fortune of the pur-
chase price, whether with or without
the consent OF such customer.
"Prohibit members from lending
to other members securities carried
by the former for customers. whcth-
er with or without the customers
consent.
State in its charter the conditions
On which issues OF securities slla.
be admitted or removed from the
trading list and provide for "A judi
cial review of its action in this re
gard.
Keep books of account. showing
the actual names and transactions OF
customers and give access thereto to
the postmaster general"
Among the recommendations for
the restriction of national banks the
committee set forth twenty-five regu-
%lations. These were;
The prohibition of the c%onsolida-
ton OF two or more banks without
the approval of the comptroller of
the currency, prohibition OF direct
ors serving on the board of more than
one bank in the same community or
locality; forbidding ownership OF
stock in one national bank by any
other bank or trust company, for
bidding voting trusts in the control
of banks; providing for cumulative
voting in the election of national
bank directors; f%orbidding security
holding companies as adjuncts to ma.
tional banks; forbidding Interstate
corporations from constituting ans
banking establishment their sole fis,
cal agents; forbiddiue interstate cor,
porations to deposit funds With "un-
supervised, unregulated, private
bankers forbidding national bank.
from engaging in underwriting syn.
4 dicates, allowing national banks tC
invest - per cent OF their capital il
state, city. county or co~rporatiGp
mortgage bonds, if the corporation
issues have paid interest regularly
Tor five years; reform of the system
OF railroad reorganization TO con.
form with the scheme outlined in thu
British law which places reorganiza
tlon! under the control OF the courts
giving the interstate commerce com
mission the power to supervise reur
~ganlzation plans; placing railroad
security issues under the control o
the commission, and providing fol
competitive bidding on such issues,
fo%rbidding officers of national bank.
from borrowing from their banks,
providing for publicity for loan.
made by a director from his ban
forbtdding national bank officers an1
directors from participating in un,
derWrltlnSs; making it Il crime fol
officers or directors to accept any
compensation for l%oaning "A bank
funds; limiting the number of di.
%rectors OF national banks to not less
than five or more than thirteen, pro.
viding publicity for the assets aud
for the stockholding lists of nation
al banks.