The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-01-28
BY ASSOCIATED PRESS.

Albany, N. Y, Jan. 27.-State super
vision Of the New York and other
stock exchanges Is advocated in Gov.
Suffers message to the legislature to-
night. The legislation proposed in
cludes a law to distinguish proper
transactions from those resulting from
combinations to artificially influence
security prices; law prohibiting
brokers from buying and selling stock
intended to mislead outsiders; a law
prohibiting brokers from selling GUS
toners stock for their own account; a
law making 1t a. criminal offense not to
make public matter regarding the
value of securities and financial con-
dition of corporations where the pre-
diction Is known to be false.
He recommends changes in the ex-
listing laws governing short sales,
hypothecation of bucket shops, rela-
tions between exchanges and consoli-
dation of exchanges.
Gov. Suffers message in part fol-
lows:
'Tllegitimate stock speculations re-
suit from improper. unnecessary. and
fraudulent manipulat:ons through
matched orders, wash sales, pooling
a agreements. etc, which are no more
and affect the public by assuming to
create values where none exist, or
values not according to the intrinsic
worth of the securities.
"The people have vital interest in
seeing to 1t that transactions upon
stock exchanges are conducted honest
ly, and with due regard to the pro-
lection Of the investing public
These transactions involve such great
amounts, affect such large number
Of the investing public, and are so
bound up with the success of our busi-
ness enterprises, that the subject is
one requiring careful consideration by
the members of the legislature of the
greatest commercial state in the Union
INEVITABLE NECESSITY.
These stock exchanges are an in
evitabIe necessity. They cannot be
destroyed without doing irreparable
injury to business. When properly
conducted they constitute an efficient
agency for promoting industrial and
commercial prosperity. AS at present
constituted, however, they are beyond
the regulative powers Of any admins
trative department of the state.
That evils requiring immediate
remedy exist is beyond dispute These
evils are easily discovered and readily
stated, but the remedies to be applied
require deliberate consideration and
the most delicate adjustment to meet
the situation, so as to benefit the pub
lie at large, and at the same time not
disturb economic and Industrial con-
ditions.
Recently a committee of the house
of representatives has taken cogni-
zance of the conditions, as matters
which concerned the whole country,
and has placed on record the testimony
of some of the governors of the ex-
changes, and of other persons, which
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.
I'm view of these circumstances it
| is now the obvious duty of the state.
| it seems to me, to devise the remedies.
If the state neglects to do its plain
| duty, the state should find no fault II
| the federal government acts In the
premises.
"a critical examination Of the testi-
mony adduced in the congressional in
vestigation shows that the grossest Of
the evils-manipulations of prices Of
securities, by means Of which the
| public is deceived and mulcted-are
| not only possible under the present
regulations of these exchanges, but
that they actually occur.
% 1T is demonstrated that the mem
bers of the exchanges are aware Of
| these occurrences, but ignore them:
manifesting surprising indifference
to the public interest; and to the repu-
tation Of the exchanges which is often
besmirched by these vicious operations.
'Tt is now conceded by some of the
! officials that a gambling taint is
present in some Of the TRANSACTIONS
| concession that confirms the general
opinion.
| TT has been established as fact
by the testimony, that transactions in
their nature essentially fictitious, which
make manipulations possible. are car
ried on without serious attempts at
restraint, on the pretense that they