New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-02-01
BROKERS SEE GOVERNOR
AND CO AWAY RELIEVED
(,uuose Incorporation and Maxi.
mum Rate for Call Money
Exchanges Virtues Told.
suLzER is ENLIGHTENED
American Can Transactions
Genuine and Small Trader Is
Treated Fairly, Visitors
Assure Him.
lRv Telegraph to The Tribune ]

By Telegraph to The Tribune
Albany. Jan. 3l.-Influential members of
;he New York Stock Exchange talked
With Governor Sulzer for an hour to-day
regarding Stock Exchange business and
;ae money market Ostensibly this dele
ration came to protest against the Gov
.rnor's recommendations for Stock Ex-
ehanse reforms and TO enlighten him
about the virtues OF that organization
and the way it disciplined its members
But nobody seemed greatly afraid the
Governor was going TO 90 anything
drastic.
Il am much gratifed at the knowledge
o, the situation the Governor displayed,
said President Maoon of the exchange
when the talk was discontinued.
Il told the committee" said the Gov
,rnor tonight, that If we don't DO some
thing along reform lines, as suggested in
nv message, Congress Will. I also told
i
government should invade any Of the
states rights unless absolutely neces-
,ary for the country's welfare. and this
only when the state refuses to act"
Two important questions were submit
ted BY the Governor to his visitors. One
.,s whether they thought II unwise 10
,ssts,ate a maximum call money rate.
~. hol nj hna lie
sadly in concert, that II would disrupt
businsss. He asked them if it would be
u,se 10 incorporate the Stock Exchange.
Unanimously they assured him it would
not
Reforms Would Be Hampered.
John G. Milburn. counsel for the OK
change. told the Governor that If the ex-
change we're incorporated the reforms II
wss able to effect now would he ham
pered by the courts. In effect, Mr.. Mil
burn said that court procedure and pub
lci,y were less advantageous TO the pub
lie than the protection afforded by the
ethics oNthe Stock Exchange and its pro-
teetion Of the public which furnishes its
customers.
In the delegation we're James r. Ma
bon. president of the exchange: Rudolph
Keppler, f. X stureis. II. X. Pomroy. j.
c. Geddes, Eugene Meyer. ir., NJ. h. Full
Yer. George P Mellick and Charles VI.
Newcome With Mr.. Milburn they were
seated In a semi-circle around the Gov
ernor's biz desk>.
The lawyer opened proceedings by urg-
ing the Governor not 10 do anything i'll
advised IIeHsaid the Stock Exchange
always stood for the square and decent
thing. It's governors devoted all their
efforts 10 seeing that the rules Of the
exchange were as just a. they could be
made. and that every member lived up
to the letter and spirit Of the rules. Even
now. he declared the governors were at
work TO bring aboU reforms which Gov
ernor Suzer had indicated he thought
necessary in his message TO the Lcgisla-
ture
President Mabon explained at length
that about all the things the Hughes vol
untary commission which had investi-
gated Stock Exchange conditions had rec
Of the exchange he assured Governor
Sulzer. we're a. anxious as anybody to
have needed reform instituted.
The Governor. having listened TO him
for while. asked If he considered the
transactions in moro than 10000 shares OF
American Can Company stock yesterday
10 have been genuine. Mabon started to
reply. but Milburn stopped him, and after
the interruption he went on.
'Of course believe each transaction TO
have been bona fde,' he explained. lie
thought the activity was due to inside
Information which caused some large
transactions and these In turn drew In
some of the public for speculation. That
gave Mr. MibUrn chance to explain to
tie Governor that there was very deep
line between what was considered
manipulation and Legitimate specula-
ton" All the brokers present nodded
agreement.
George p. Melick told the Governor
that II was just as easy for tho PLAIN
people to buy stocks in small lots AS 1t
was for the biz buyers 10 place orders
for thousands Of shares. and at the same
price The Governor had this explained
10 him several times in several different
ways Mr.. Mellick said that In recent
years there had been much purchasing OF
snail lots OF stock by persons Of small
means ali over the country for invest
nent
Small Trader Suffers Care.
The Governor wanted II made very
clear TO the people" that this could De
Gone. and that, though the rules or the
brokers made 1on-s share lots the unit FOR
trading, the customer for one share or
ten could get what he wanted. The Gov
ernor said he had been engaged in pre-
pairing bills on points made in his STOCK
Exchange message. lie urged the brokers'
TO attend the legislative hearings and give
the legislators the benefit OF their ex-
perience and views Then he sprang his
question about the desirability OF liking
by law a maximum rate for call money.
Eugene Never. jr.. said II would not GO
al all The high call money rates were
hardship on the broker. as well as the
customer. he said. though he admitted
that the customer had to pay them ana