New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-03-10
KENDALL ATTACKED BY
N. Y. STOCK EXCHANGE
Statement Provoked by Still.
we'll Bill, Result of N. Y. Bank
Note Company's Charges.
POSSIBLE FORGERY FEARED
Protection of Buyers Given as
Reason for Preferring Ger
tificates That Lived
Up to Rules.

Reused from its sense OF security by
the vivid plans OF gratuitous reformers,
| the Stock Exchange came out yesterday,
| through William G. Van Antwerp, chair
man of the nominating committee, with
| a statement on Senator Stilwelrs bill re-
/ Gently introduced into the State Senate
with n view to abrogating the rule OF the
! exchange providing that securities, in
order to be listed must be engraved by
companies whose qualifications have been
approved by the governing committee.
The statement regarded the bill as the
direct result Of the attacks made on the
exchange by George NJ. Kendall, presi-
dent Of the New York Bank Note Com
| pany. who is suing the Stock Exchange
on the ground that IL patronizes the
American Bank Note Company because
| of the interest which the governors Of
/ the exchange have in that concern. Said
/ the statement:
THE exchange has heretofore kept
| silence in regard to the attacks made
upon il by Kendall, but inasmuch as
members Of the Legislature have appar-
emily attached sufficient importance TO
]
dalrs benefit, 1t has become necessary to
explain the position OF the exchange.
| This has been done the more willingly.
because at this time, when credence has
| been given TO so many unfounded state
/ ments with reference TO the business
methods OF the exchange and its mem
| bers, IT is desirable 10 make clear the
| fiimsiness OF the grounds upon which
such charges may be made and the char
/ acter of the motives by which those who
| make them may be actuated. in order
| that other allegations OF a more general
nature, and, therefore. not as susceptible
! Of direct disproof. but frequently resting
upon equally flmsy grounds and springing
from equally base motives. may receive
less ready acceptance
I'm pointing out the danger OF the pro-
| posed bill, the Stock Exchange explained
that II assumed il practical 10 maintain
a standard for listed securities by ac-
/ ceptng or rejecting them according TO
! the appearance they presented after they
were engraved. This assumption was
! wholly erroneous. II contended.
In seeking TO maintain its standard OF
/ engraving. the exchange declared that
il had TO be convinced that the character
OF the management OF the engraving COM
pany. its financial responsibility, equip
nent. methods OF work and other charac-
teristics We're such as to afford salts
factory assurance that II would observe
the requirements OF the exchange In
tended to prevent forgery and the mis-
use of plates.
! The exchange must pass upon an entire
issue. It's statement reads, by an exami-
nation OF one or two samples. the char
/ acter Of the engraver furnishing the only
guarantee that the whole issue would be
up 70 standard. IF the proposed bill
passed it would be impossible for the ex-
change to maintain a proper standard
according to It's declaration.
/ Demonstrating this very point by the
} suit which it holds TO be largely respon-
sble for the Introduction Of the StilweH
bill. the statement said that for the four
wears prior 10 1892. when the work OF
/ Kendalrs company was admitted to the
stock list. Kendall repeatedly eyaded the
requirements OF the exchange regarding
( the engraving Of securities.
I'm lSs!. the statement asserted, several
gentlemen OF high character who had
/ tried 10 make the company live up 10
the exchanges standard. withdrew from
il and left Il under KendalPs sole man
agemcnt. The statement continued:
As TO the character of the manage
ment. Il Is sufficient To say that its presi-
dent. George n. Kendall has I'm the signs
displayed by him upon the building Of the
/ bark note company, In statements made
To the public press, before the Pujo COM
mittee in Washington and before leglsla-
/ tive committees I'm Albany. and in his
sworn complaint in the suit brought by
! his company against the exchange in the
United states courts. shown disregard
for truth that wholly discredits the char
acter OF his companys management.
Continuing. the statement declared that
KendalPs allegation that the American
Bank Note Company had a monopoly
ON engraving listed securities was not
true. ,he work of four other concerns be-
Ing admitted. Moreover, only tribe
more than 4 per cent Of the stock OF the
American was held by six members and
twelve firms Of the exchange, some or II
! for customers, the statement said.