The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-05
SENATOR'S QUESTIONS
DISTURB UNTERMYER
Memory Fails Him Sometimes
in Arguments on Stock Quo
tstion Publicity.
CALLED "PRESS MUZZLING"
pujo Data Diagnosis Causes
Wccks's Denial-Van Ant
wcrp on Stand To-day.

WAsHiNGroS. Feb 4.-Samuei Inter.
ryer. erstwhile inquisitor for the Puio
money trust investigation. opened the
argument to-day before the Senate Com.
mI,tee on Banking and Currency in favor
Of the owen bill. which delegates TO the
Unconstitutional supervisory power.
over the Transmission of quotations of
stock and other exchanges by telegraph
and telephone and through the mails.
samuel tntcrInyer before a committee
with power 10 interrugatc him and CONNIE,
sH analysis Of his broad statements OF
fact proved to he IA different Samuel
tnte7nyer from the inQuisitor with the
,uvNrs surrendered to him by the Puio
committee. lie had prepared a most com
prehensive brlof, but seldom was he per
ni,ted to read 1t for more than two or
three consecutive minutes. Interruptions
thick and fast came from senators Weeks
Hitchcock, Nelson and Mclean
For the New York Stock Exchany,
which wiS tn" only one of the exchanges
represented. John q. Milburn, counsel FOR
the orsaiiizdtion appeared. He was thanked
by an array OF members and officials of
The Exchange. including President James
~. n.
William &. Van Antwerp. II. q. S. Noble
and Samuel +. STREET.
NJ. Untermyer's opening statement CON
tanned the following assertion:
Unless / wholly nisapprehend the
operations OF our financial system the
equation by law OF the Stock Exchange
g an Indispensable condition precedent 10
the destruction OF the control of great
financial credit by few men or to any
~ fsa.s ,s..f.
|, j. through the iilegitimate use OF the
security market that the vast predatory
fortunes have been 'ilched from the pub
lie
He urged the enactment of the Owen
bill as the sure and certain panacea for
the infection upon the country of false
Valuations for securities and in substan-
uatiou of his contention reverted to the
famous report Of the Pujo committee.
Weeks Disputes Diagnosis.
Mr.. untermyer reproduced fluctuations
and charts used in the course Of the Pujo
Investigation, whereby IL was shown that
OF active stocks on the New York lst
several times the total issue Of some i'm
portant corporations were bought and
sold IN the course OF a year, or even of
month.
senator Weeks was disposed to dis.
-
tines" activities. particularly of standard
stocks, and insisted that the broad price
ranges and large volume OF transaction
were speculative in most of these in
stances, but rarely manipulated. Senator
Weeks was most positive and Mr.. Inter
hyer strove to be even more so.
Mr. Untermyer's proposition that the
Owen bill forbiddins circulation through
'1e United States mails of the quotations
" unincorporatcd exchanges Mt the will
" the rostmas,er-G-neral. Senator
Hitchcock characterized AS blow at the
freedom OF the press"
Mr.. tntermyer reverted to the Califor-
ria Petroleum hotation.
did you know of amy bank or any
rust company that lent any money upon
California Petroleum common stock In the
curse OF its so-callcd manipulation de-
handed Senator Weeks.
"lt is my recollection that they did"
sa'd Mr. Untermycr.
"Havo YOU any knowledge that a loan
was made on this stock by a national
bank" insisted Senator Weeks.
VI. tnternyer could not recall the spe-
cafe instance.
He urged the enactment OF the specific
Paragraph OF the owen bill prohibiting
Customers from lending their stock certifi-
Gates to brokers. He urged that the
Incorporation of the stock exchange
should provide that the books of its
members should be open TO examination
50 as to prevent wash sales and matched
orders
Mr.. Untermyer concluded his argument
10 the committee. but will remain In Wash
'neton tomorrow. w..en the stock ex-
change officials and members will present
their side OF the controversy. Mr.. Van
Antwerp will be on the stand in the
morning