Evening star., 1914-02-06
RESUME PROTESTS
AGAINST OWEN BILL
Wall Street interests Want
More Time to Argue
Their Case.

New York Stock Exchange officials
and bankers. appearing before the Sem
ate committee on banking and cur
rency. today resumed their arguments
against the Owen bill proposing gov
ernment regulation of stock exchanges.
This was the third consecutive day al
lotted by the committee for hearings
on the measure. and both advocates Of
and those opposed to the enactment of
the. bill said they would require con-
siderable additional time to present
their arguments
John G. Mlburn, counsel for the New
York exchange. expected TO occupy all
of today presenting the case of his
clients. He estimated it would require
another day for them to conclude.
Invited to New York.
J. 3. Mabon. president of the eN
change. invited The committee to New
York to see its operations. Henry g. ;.
Noble. a member of the exchange. de-
Tended speculative transactions on the
days fluctuations in any security.
Short selling lie said. created posi-
tive market for stock Prohibitions of
the pending bill as to lending OF So
curities by brokers with whom tneE
strict the free market for the small
investors. he said.
senator Hollis asked if any practice
existed among brokers of trading
blocks OF stock about among them-
selves without any actual sales. orders
from buying customers being filled at
the top of the market and those from
selling customers AT the bottom prices
for the day. Mr.. Noble said this would
constitute fraud and result in the eX-
nv Sjp af
it was proved. The rules of the New
York exchange and state law required
that full details of any transaction be
open to a customer. he said.
Clears Up Impression.
Under questioning by Chairman Owen.
Mr.. Noble cleared up what appeared to
be an impression among some members
of the committee that the '.stabi ization'
process described yesterday By Mr.. Van
Antwerp was the same as wash sales.
Sterilization. Mr.. Noble said, meant
that principal should order one broker
to buy certain stock on scale below
a given figure and another broker orders
to sell the same stock on a scale above
that figure.
He declared that inasmuch as these
brokers could not deal with each other
because of the limitations of price in
their respective orders the process was
an open and free one. actual transac-
tions resulting involving changes in
of the stock.
Ii u principal ordered one broker to
buy and another to sell at the same
price no change in ownership resulted,
he said. and the transaction was a
constitution of the New York Stock
Exchange had forbidden such manipu-
lations for the last twenty-five years
ne said and the statutes OF New York
pa ssed last year also forbade them
Noble Agrees to Point.
Senator en- asked Mi. E"nie # he
did not believe that stalil.zation which
tended 10 fix a security at a price dis
TO its actual value was a
harmful process aud should be regu-
lated? Nj Noble agreed. but said the
brokers' were unconscious agents il any
such transaction. He said federal Or
uniform state laws which gave in
vestors knowled of the actual value
of the assets OF listed companies would
be as desirable to stock brokers as 70
every one else.
senator Nelson introduced today
his federal Incorporation bill. which he
offered during the Sixty-tirst Congress.
The bill would classify ali business be
require federal incorporation and control
of companies engaged in such enterprises.
Owens Reveals Purpose.
Senator owen said at the White House
TO-DAY that he had never discussed the
stock exchange bill with the President.
and did not know when he would do 50,
if at all. He reiterated former state
nents that il is not his intention OF any
body else's to harm a legitimateiy oii-
Grated stock exchange. but IT is proposed
To stop fraudulent methods and -eecng
of the public by fictitious propositions.
THE stock exchange is one of the most
important national and International fac
tors III the financial world. by its opera
tions il can bring on panics that will be
felt in every nook and corner of the
but it is amusing To hear the |
contention that it is a private associa |
tion OF benevolent gentlemen created for /
the purpose of their own convenience and |
plea sure the interests of the public are /
yitally concerned in stock exchange 4
transactions and all laws should protect /
the masses of the people
PLAN 12-HOUR TALKFEST.