The evening world. [volume] (New York, N.Y.) 1887-1931, 1913-01-31
STOCK EXCHANGE
MEN TELL SULzER
LAW SPELLSRU|N
Committee Tells Governor
Outsiders" May Need Re-
straint, but Not Members.
RULES" ARE ADEQUATE.
Limit Of Call Loan Interest
Not Needed; Rate Never
Ruined Anybody.
RULES" ARE ADEQUATE.

stock Exchange Ia opposed to the In
corporation OF the Exchange and II
against tho enactment Of Legislation
that would place . maximum rate Of
interest on call loans. Gov. Sulser was
informed to-day by . committee repre-
sspting the Exchange. The committee
also protested that the enactment Of
such laws would cause disastrous re-
suits."
The committee. headed by James u.
Mahon. president Of the Exchange. con-
ferred with the Governor more than an
hour on proposed LEGISLATION affecting
stock exchanges which ne Governor is
preparing for introduction In the Lag
islature. These bills will smbody tho
views expressed In his recent message
'There are two things that are not
clear In my mind." said tho Governor.
the FIRST 10 tho question concerning
the rate Of interest on call loans. The
second 10 In regard to the incorporation
OF the Stock Exchange. would like
TO get your Views on these two aues-
tons"
INCORPORATION 10 sVRAVoHr
WITH DANGER"
John q. Milburn. counsel for the Ex-
change. declared that the incorpora ton
Of the Stock Exchange would be
"fraught with disaster and would seri-
ously interfere with the disciplinary
powers OF the Exchange. The Exchange
being the private business OF hundreds
OF men. don't see what good can be
accomplished by requiring Il to incor-
porate."
Gov. Sulzsr reminded Mr.. M,lburn
that the Cotton Exchange was incor.
porated and that the same Is true of
practically every exchange except the
New York stock Exchange.
Many people OF the South and West
have Informed me-" continued the Gov
ernor. that they believe II would be a
good thing for the New York Stock Ex.
change to incorporate. ! purposely re-
Trained from making Q specific recon-
mendation along this line In my message
because | realize that there are two
sides to this question"
Mr.. Miiburn pointed out that the Ex-
change Is a voluntary organization and
Ions. Its punishments are tremendous
~ effective now" he said. when a
man IL suspended his vocation Is at an
end
II the exchange II compelled TO In
corporate, he explained. It's decisions
could he questioned In the courts. Long
litigation would follow and the courts
would have to pass upon questions
which. he said, are now dealt with ef-
fectiveiy and quickly by the Exchange
Itself He promised 10 submit y brief
on the question.
NO CUSTOMER WIPED OUT BY
GALL ikTEREST.
Isn't II true that n customer can be
wiped out Of the market ut present by
the high interest rates for call loansy"
asked the Governor.
The committee replied that such .
situation had never developed and that
they were opposed to any law that
would nx the rate OF interest which bro
kers may charge.
The Governor then questioned the
committee concerning the activity OF the
American Can stocks He wanted 10
know " IUt lhTst tuieh IN tnlb btOck IN
the past few days were made BY bona
nas holders. The committee said tina
EXCHANGE was making an Investigation
OF this matter. but expressed the opin-
ion tina; these sales were genuine.
Mr.. Milburn and President Mabon ey.
planned the internal workings Of tho
exchange ana assured the Governor
that II would cooperate with him and
with the Legislature in an effort to
accomplish reforms.
STATE MIGHT ACT ON "PEoPLE
OUTSIDE"
1--WE realise" saia lGr. lGubur,,
shat the action Of people outside
the exchange 10 . proposition for
the state 20 consider ana . sphere
for useful isstslstton. Some OF
your recommendations can b
drafted without serious dimculty
ana conditions can DO rsmsdisd."
Mr.. MilDurn cautioned the Governor to
go slowly In dealing with the more
| delicate subjects" In his message.
THE exchange" he continued. has
TO bear the burden Of good many
| things over which It has no RESPONSE
bilities. 1t is constantly studying what
can be done to improve conditions. but
II limited by the cardinal principle that
| II Is "a market. that l, mus. be open and
not be unduly restricted. and II It IL
| II ceases to be market"
President Mabon said the exchange
had put into effect many OF the reforms
advocated by the Hughes investigation
CON mission and that other changes were
contemplated In the near future.
The distinction between speculation
and manipulation was explained by Mr.
Miiburn. while George =. Mellick told
OF the opportunities afforded individual
| small investors by the Stock Exchange
Tho latter said about 100000 personi
i .uars NnnncIallu lnla re alad In IA holu