The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-01-28

EVILS SHOULD BE
ENDED, HE SAYS
Number Of Important
Changes In the Existing IAws-ylo.
ations Of Principles Of Trade Ars
Treated too Lenicntly, He saxa
supervision regulation Of the New
York stock exchange and other al.
change: are advocated by Governor
Sulzer In q message sent b. him to
the legislature last night.
The time T. ripe. in the governors
END "hasrant abuses. shifty schemes
and clever combinations to catch the
unwary and to mislead the public"
To eject this he recommends tho
enactment Of group Of laws, at least
one Of which shall provide imprison-
ment as penalty for its violation.
These laws the governor says. should
FFss ~ S0S SeSlA QE8N0C00 WHICH o0V0
been shown to exist by the Pujo oom-
mittee and other Investigators.
u States Duty.
The testimony Of some Of the Rov.
ernors OF the exchanges" Governor
Sulzer says. leaves no doubt in the
minds Of men OF Judgment that the
exchanges either have been incapable
or unwilling to devise measures that
wi!l effectively eradicate the evils. Il
hvH~ A..k.
y seems to me. to devise the remedies.
II the state neglects to do it's plain
duty. the state should find no fault II
the FEDERAL government acts In the
premiseA"
Among the measures which Cover
nor Sulzer would have enacted into
law are: A law to distinguish clearly
proper transactions Of purchase ana
sale from those that are the result
OF combinations to raise or depress
artincially the price Of securities With
out regard to their true value or ieri.
innate supply and demand.
A law to prohibit brokers from SELL
Ing backward and forward among
themselves blocks Of particular
lead outsiders.
a law to prohibit brokers from SELL
Ing for their own account the same
stocks they have been ordered to buy
Iof their customers at the time the
customers orders are xecuted.
A law clearly prohibiting insofvent
brokers' from continuing to huy and
tseli after they become insoivent.
A law making it a criminal offense
TO issue any statement or publish any
advertisement as to the value Of anv
stock or other security. or as to the
financial condition Of any Corporation
OF company issuing or about to issue
stock or securities, where any. prom
Use or prediction contained in such
to be false or to be not fairly justi.
ned by existing conditions"
Recommends Chanxes.
governor Sulzer also recommends.
but leaves to the legislature for decis.
Ion. changes In existing laws and the
enactment Of new laws goyernins r
short sales. the hypothecauon Of &C.
c9rittes: bucket shops. usury (under
which head he classes the raisin1 of
cent? the relations between exchaneea
ana the consolidation OF exchanges,
IN his message he says in part:
Tnae evils requiring immediate
remedy exist Is beyond dispute These
are easily discovered and readily ~.
ed: but the remedies to be applied r.
quire deliberate confederation and the
SOsSDSS
situation. 80 as to benefit the public
at large and at the same time nof
disturb economic ana industrial con.
ditions.
1T is demonstrated that the NONE
ners OF the exchanges are aware or
these occurrences. but ignore fhem3
manifesttng 2 surprising indifference
reputation OF the exchanges which II
often besmirched b. these vicious on-
erations
A Gambling TAlnA
IT is now conceded By some Of tho
oftfcials that q gambling taint 10 pres.
ent in some OF the transactions-a
concession that confirms the general
opinion. It has been established thef
transactions in their nature fictitious,
are carried on without serious Attempts
at restraint.
Abuses Of the mechanisms aud vio.
lations Of Just and equitable principles
Of trading. are treated leniently IN.
stead OF being vigorously condemned.
The testimony before q committee
Of the house Of representative fur.
bers have been punished for extreme
violations OF the rules. II also indicates
as quito clearly that there are habituai
evasions. undisclosed because not in.
Vestigated.
Men Have Been Lax.
The men who have been entrusted
with the power to regulate the opera.
times displayed inexcusable laxity in
their duties to the public. Since they
have failed to exercise the power to
prevent such clearly vicious abuses.
the authority Of the state must be
invoked.
"It seems to me the necessary ma
employed with impunity BY or throueh
members to commit depredations upon
the public.
These things must be stopped. An
enlightened public opinion demands
It An exchange in which they occur
ceases to be legitimate market, and
becomes a powerful mulcting instru.
ment.
$50 long as transactions are not in.
tended to m:slead and do not infringe
upon the rights Of others. they should
not be interfered with: but transac.
tions that are fraudulent in their ma
ture should be vigorously prohibited,
Il urge upon you the prompt enact.
ment Of laws to end these shifty
schemes. and to forbid these clever
to catch the unwary and
to mislead the public
Abuse of Practice.
"The subject OF so-callcd short sales
is one requiring your serious consid.
Grafton. A contract to to sell property
which a man does not own at the
time. but with which he can provide
himself in time for the performance
OF his contract, is a general transac.
ton in various branches Of business
The best views seem to be that short
selling In and of itself Is not wrong.
full but the abuse OF this practice