The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-06
He Cites Recent Action in
Germany After Such
Radicalism.
CANNOT STOP SPECULATION
Restrictions Would Mean With
drawal Of S26.OOO,OOO,OOO
Securities Here.

Governors OF the New York Stock Ex-
change. OF which he Is member. William
c. Van Antwerp 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 Ant
werp occupied the stand. There were
many Interruptions to his statement OF
the stock Exchanges case. both from the
members of the committee and from
Samuel Cntermyer. who cooperated with
the chairman OF the committee. Senator
Owen OF Oklahoma, In drafting the
measure.
Before Mr. Van Antwerp got fairly
started there was a short clash between
him and Mr.. Untermyer. occasioned by
the latters recent reference TO the press
dispatches from Washington announcing
President Wilson's opposition to the Owen
bill. which dispatches were later modified
with the explanation that the President
did not consider regulation OF the stock
exchanges as one OF the Democratic plat
form promises.
Mr.. Untcrmyer had said that the publ
cation of the original statement that Pres
tdent Wilson was opposed to the measure
werp in mis- CAPACITY as member OF the
library committee OF the exchange and
that he had noted the presence of Mr..
Van Antwerp in Washington on the day
the statement was published. Mr.. Inter
myer later withdrew the allegation.
Whom did you communicate with at
the White House." asked Senator Weeks
OF Mr.. Cntermyer.
Il do not care to say replied Mr..
Untermyer. ut is sufficient that the
newspapers corrected the report"
do you know that the President au-
thorized the correction" pursued Senator
Weeks.
Mr.. untermyer's Assumption.
Il assumed it. as / had a right to-"
retorted the lawyer
Mr. Van Antwerp's presentation Of the
opposition Of the Stock Exchange TO the
pending regulation bill then proceeded.
The first point brought out by nm was
the opposition OF the exchange to en-
forced Incorporation. Mr.. Van Antwerp
said
Mere Incorporation as such neither
adds to nor subtracts from the efficiency
Of the business or of its management.
Transactions on such an exchange are no
more and no less subject to the laws OF
the State than transactions on an unn-
corporated exchange; both alike are alb
solutsly subject to the law.
THE Stock Exchange liz n voluntary
ORGANIZATION of body of men subject
to rules which are rarely broken and
which are scrupulously enforced at all
times. with the necessary penalty Of
violation.
The disciplinary power OF the exchange
over ts members il Its most vital func-
ton. We maintain a standard. repeated
again and again in our constitution. in
the words Just and equitable principles
Of trade"
Mr.. Van Antwerp expressed the view
that the Interpretation placed upon this
phrase by members OF the governing body
Of the Exchange was more comprehensive
than any Interpretation which court OF
law might place upon II,
He urged that the summary actions OF
the exchange AS at present constituted
when heterogeneous OF the rules and the
ethical principles Of trade were properly
brought to their attention were more
speedy and more certain than anything
the courts OF law could provide and fur
thermore that interference with these &C.
tons through injunction and similar proc
esses was inhibited by the conditions OF
membership in the present body.
Would Sap the Discipline.
"a judicial review would inevitably zap
this discipline OF It's vitality" added Mr..
Van Antwerp.
Mr.. Van Antwerp thereupon took up the
portions OF the Pujo money trust commit
tee testimony and read back into the
record. with a running explanation. much
of the matter with reference to the So
called fraudulent transactions marking
the induction OF the stock OF the Cali
fornia Petroleum Company into the Official
list OF the Stock Exchange
Senator owen was inquisitive at this
point. He had heard OF the buying and
sraleA w
the market at the time the activities OF
California Petroleum became marked He
told the witness that he could not see how
fluctuations from So to 70 within a few
hours signihed that the market was being
stabilized" by these orders.
With painstaking effort Mr.. Van Ant
werp went over his explanation Of the
floor conditions on the day Of the violent
performances In the oil stocks. He told
the committee OF an order TO purchase
500 shares TAT the market which he him
self had and how he was able to execute
II only by buying 100 at 65. 100 at 81, 100
at 10 and in a few minutes the remaining
200 at 65.
There was no chance for the so-called
sustaining orders OF the specialists to have
any very great influence In market like
this said Mr.. Van Antwerp. There was
a crowd of zoo or 800 brokers around the
post where California Petroleum was
traded In"
Senator owen was anxious to know ~
this excitement had been predicated on
news accounts OF the value OF the stock
framed to deceive the public as to the
actual inherent value OF the two proper-
ties constituting California Petroleum.
Intrrest In the Properties.
Mr.. Van Antwerp replied that there baa
been much interest In the development Of
the properties before the listing of tho
stock on the exchanges and that there
had been extensive trading in the shares
on the New York curb before tho stocL
appeared on tho tape Of tho Stock Ely
change NJ a listed quotation.
RevertinE to the subject Of the lack
Of necessity for Incorporation and the
restrictive features Of the owen bill Mr.
Van Antwerp said:
THE adoption by tho New York STOCK
Exchange OF the regulations specified in
the Owen bill would result at once in the
withdrawal from tho list Of ubstantiaIiv
all tho $4,000. o00. 900 OF stocks and as,
oo0,oo0,o00 OF bonds now listed there.
THE number Of securities remaining on
f.