New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-02
Uplift of Standards Result
of Board of Governors
Action-HouSe in Order.
TRADING ETHICS RISE
AS BUSINESS DROPS
A Change Governor Tells What
Has Been It's Real Task and
Accomplishment in 1913.
By WILLIAM {. VAN ANTWERP.
Member Board Of Governors of New YORK
stock Exchange.

The New York stock Exchange did
not transact its accustomed volume OF
business during the year 1913. News
papers dwelt at length upon the iaiiihS
nj, in speculation and investment
brokers felt It keenly, the army OF ne
unemployed in the financial district
was sensibly increased by the reduc-
ton of office hands. and the oldliine
christmas cheer was not in evidence
this last year. =,
Rut while the stock Exchange did
hut little business in material sense
in 1913. il took pronounced strlue9
toward the attainment Of higher ethl-
cal standards, and members who LOOK
ahead may well ask themselves
whether in thus stirring their con-
sciences and intellects they have ROT
actually done the biggest ana oes'
business in their history.
The trouble in former years was tlat
the exchange membership composed
Of excellent but unimaginatlVe cltizeh7'
was content to accept as a matter u
course the standards handed down To
them without minutely QUESTIONING
those standards They stood TOO close
70 the picture: they lacked perspec-
tive Various errors OF omission mus
crept into their organization WINCH
nassed from critic to critic outside the
Stock Exchange circle, were speeulIy
magnified into errors Of commission
The exchange was criticised for mat
ters with which it had nothing "adl-t
over 10 do. magnifled from the atoms
of things left undone.
A Year of Housekeeping
This is no longer the case, for in the
wear that has passed there has been
an excellent tendency toward upliit IN
the exchanges standards. Under the
leadership of President James B.
AIabon and an aroused board OF gov
ernors improvements and reforms
/ have been enacted into exchange Ia"
( that were little dreamed OF IN the
philosophy Of other years. In a wor1'
the exchange has put its house in or
der, and this has been its real business
in the wear 1913. Can there be bet
ter business or one more eXcellently de-
signed to attract friends?
First in the order OF effective re
forms in 1913 was the resolution adopt
ed by the governing committee on Feb
ruary ;. 1913. as follows:
"Resolved, That no Stock Exchange
member. or member of a stock En-
change firm, shall give, or with knowl-
edge execute, orders for the purchase
or sale of securities which would m
yolve no change of ownership"
This is the famous order that put an
end TO manipulation. Thus far ii has
proved to be effective. and those who
, have the exchanges best interests at
heart feel that both the letter and
spirit Of this drastic reform will be
observed in future.
1t is certain no member OF the eX-
change with this resolution before him
and with a realization Of the Ora
CONAN code under which stock EN-
change regulations are enforced, VIII
/ knowingly be a party 10 any sucn
( transaction.
In order 20 give this resolution fur
/ ther force and erect the governors Of
the exchange on March >, 1913.
amended the constitution by creating
a committee on business conduct con-
sisting of five members. The functions
Of this committee are set forth in The
following resolution:
1T shall be the duty Of this commit
tee to consider matters relating to the
business conduct Of members with re-
spect 10 customers accounts.
To Keep in Touch with Prices.
1T shall also be the duty Of this
committee TO keep in touch with the
course OF prices listed on the ea-
change. with the view Of determining
when improper transactions are being
resorted 10.
1T shall have power TO examine into
. the dealir gs Of any members with re-
spect to the above subjects and report
its findings TO the governing commit
tee"
Members Of this committee are brok-
ers in active business Oh the floor II
is their duty TO keep an eye open at
ALI times fof Irregularities and the
large powers given them leave no room
for doubt that .they have done and are
doing their work in the best possible
spirit The term business conduct of
members is a large order. IL enables
the committee not merely TO enforce
the prohibitions against manipulation.
but To see 20 ii that overtrading or ex-
cesses OF any kind by members are
rigidly kept under the ban. Improper
transactions Is a phrase that covers
multitude OF sins There is almost