The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-12
CALL THE OWEN BILL
A MENACE TO TRADE
White. Page. Emery and Mil
burn Assail Measure Be-
fore Senate Committee.
A LESSON FROM GERMANY
llayrc Coffee Market Also De-
stroyed by Laws Aimed
at Speculation.

WAsniNGToS, Feb 1i.--Horace A.
White. who was chairman Of the Hughes
commission which In 1909 investigated
the New York stock Exchange Edward
u. Page Of the Merchants Association OF
New York. who was "A colleague OF Mr..
White on the commission Prof. Henry
G. Emery OF Yale and John q. Milburn,
counsel for the New York stock Exchange
appeared to-day before the Senate Com
mittee on Banking and Currency in OPP
position TO the proposed owen 'regula-
ton bill"
Each condemned the bill as measure
fraught with grave danger to the business
interests OF the country and as inef-
fcient to accomplish the desired reforms.
Mr.. Milburn ventured the opinion that the
bill was unconstitutional.
Mr.. White told of reforms the Hughes
commission had advocated and said the
stock Exchange had adopted eight of its
twelve important recommendations. He
discussed historic corners in the New
York securities market. citing the over
selling OF Northern Pacific common stock
on May o, 1901. He said that this situa-
ton was caused by two great interests
struggling for control OF the Northern
Pacific railroad
Mr.. Whit" deprecated the privilege
which the exchange possessed OF fixing
settling price after corner. He said
that the Carelessness or wickedness
whichever Il might be. which precipitated
such market catastrophes should be pun
ished to the fullest extent The estab-
lishment of settling price lessons the
punishment of the careless or dishonest
Spectator. he said.
Mr.. White In reply - 4 question by
senator Nelson SAID
curb transactions are bona fide pur-
chases and sales Bucket shop transact
ton. are merely bets oh the price quota
lions of the exchanges. Where quotations
are behind time In their arrival in a
bucket shop even the decent element of
IN. sporting chance is eliminated. They
are not then even. wageTs; they are
swindlcs"
brains as Water In stock.
Edward Il Page excused the prrsen nee
OF so-called water In stocks by saying that
frequently what was carelessly termed
water was really the brains of the or
ganizing power. or rather the capitalized
intelligence OF industrial or other enter
prises. Publicity as to the assets OF a
corporation either through Federal or
state obligations upon Its organizers 10
tell the truth with the consequent penalties
FOR untruth. according to Mr. Page. is the
surest cure for dishonest watering OF
securities.
Mr.. Page was satisfied that only in rare
New York Stock Exchange imposed upon.
Here Chairman Owens called Mr.. Pages
attention to the listing Of Rumcly COM
mon stock. which on the day II was ac-
ceped ranged between 9sia and l0l with |
out ever again attaining that price and
wound up recently about Sl2 a share.
9TH. trouble with the Kunely stock !
WAS not with the stock Exchange list
Ing committee. but with the pro- |
motors of the company said MIR
page. Their prospectus contained "A
harefaccd lie. Throughout the trading |
in securities previous to their being listed |
on the Stock Exchange this lie remained |
undiscovrred-I say lie advisedly--snd IL \
was not until long after the stock be |
came active on the market that the un- |
truth was laid bare. The New York bank |
ing concerns which put this stock out |
were William Solomon x Co. and Hall |
garten ~ co.
II myself was taken in by tn" Ru-
moly prospectus" said Mr.. Page Il own |
NIFTY shares OF the preferred. I bought |
this stock before /, was listed and have
suffered considerable loss in IT, Hut after 4
the stock was listed. IL would be unfair to |
the holders to be deprived now of its mar
kctahle value which the stock holds
through being listed security or the
New York board"
Tells of Hughes Commission.
Mr.. Page reviewed IN. success OF the
Hughes commissions work. He said
There were two clearly defined parties
IN the New York Stock Exchaug. in 1909,
one OF which was growing. the other
IN numbers. The party for
merry the more influential were conserva-
tive adhercnts Of Older methods.
"Thc larger and less influential party,
which contains the younger members of
the exchange. was convinced that the
time had come to make changes of Il
character. The younger party
now dominates the policy OF the ex-
change"
the German stock exchange act which
went into effect in 1897. had served to
destroy Germanys market for grain and
her market IN industrial securities. He
said that this act as IL affected stock
transac tions had been practically repealed
in 1907, but that even now. owing to the
operation of the inhibitlons upon future
In grain, the German pro-
duccrs of wheat and rye were compelled
to depend upon Liverpool, Antwerp and
the French exchanges for prices OF their
The German banks deliberately but
under the protection of their own law.
during the ten years OF the operation
Of these prohibtory statutes. engaged in
the bucketing oS the orders Of their own
customers" said Prof. Emery Honest
speculation was throttlcd."
Prof Emery summed zip by saying: !,
Ia. 81.