The Washington herald., 1914-02-06
STOCK EXCHANGE
BILL IS OPPOSED
W. c. Van Antwerp. Of New
York. Appears Before
Senate Committee.
HAS OWN STRICT RULES
Says Incorporation Would Not Affect
E&eiency-California Petroleum
Transaction Explained.

On behalf Of the governors Of the New
York Stock Exchange, Of which he ID q
member, William c. Van Antwerp yes
terday presented the opening argument
before the Senate Banking and Currency
Committee In opposition to the Owen bill
regulating stock exchanges. For nearly
seven hours Mr.. Van Antwerp occupied
the stand. There were interruptions to
his statement of the stock exchanges
case from the members Of the commit
tee and. with their consent. from Samuel
Untermyer, coauthor of the measure.
Before Mr.. Van Antwerp got started
there was a clash between him and Mr.
Untermyer occasioned by the latter's
recent reference to the press dispatches
from Washington announcing President
Wilson'S opposition to the Owen bill.
which later were modified with the ex-
PLANTATION that the President did not con-
slider regulation Of the stock exchange as
one of the Democratic platform promises.
Mr.. Untermyer had said that the pub
lication of the original statement that
President Wilson was opposed to the
measure probably was inspired by Mr..
Van Antwerp in his capacity as a men,
ber of the library committee If the
exchange, and that he had noted the
presence of Mr.. Van Antwerp In WASH
inston on the day the statement was pub
lIshed. Mr.. Untermyer later withdrew
the allegation.
Reasons for Opposition.
Mr.. Van Antwerp's presentation of the
opposition of the stock exchange to the
bill then proceeded. The first point
brought out was the opposition OF the
exchange to enforced incorporation. Mr..
Van Antwerp said;
Mere incorporation as such neither
adds to nor substracts from the efficiency
Of the business or of its management
on such an exchange are
no more and no less subject to the laws
Of the State than transactions on an un-
exchange: both alike are
subject to the law. The stock
exchange is a voluntary organization of a
body of men subject to rules. which
rarely are broken, and which are en-
forced scrupulously at all times, with
the necessary penalty OF violation. The
power OF the exchange over
Its members is its most vital function.
We maintain a standard repeated again
and again in our constitution in the
words Just and equitable principles Of
Mr.. Van ANTWERP expressed the view
that the Interpretation placed on this
phrase by the members of the governing
body Of the exchange was more compre-
hensive than. any Interpretation which
a court Of law might place upon it. Said
Mr.. Van Antwerp:
"a judicial review inevitably would sap
this disciplinary system Of its vitality"
Mr.. Van Antwerp took up the portions
Of the Pujo money trust committee hear
ings and read back into the record with
an explanation much of the matter with
the so-called fraudulent trans
actions marking the induction of the
stock of the California Petroleum Com
pany TO the official list of the stock ex-
change.
Questioned by Owens.
Senator Owen was most inquisitive at
this point. He had heard of the buying
and selling of sealed orders which were
used in the market at the time the &C
tivities Of California petroleum became
He told the witness he could
not see how fluctuations from 50 to az
within a few hours signified that thet
market was being ',stableized' by these
orders.
With painstaking effort Mr.. Van Ant
werp went over his explanation OF the
floor conditions on the day of the violent |
in the oil stock. He told !
Of an order to purchase 500 shares "at |
the market which he himself had and |
how he was able to execute il only by |
buying 100 at s., 100 at s., 100 at 20 and |