The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-20
RUIN OF EXCHANGES
SEEN IN OWEN BILL
Wall street Gets Copies and
Plans Campaign Against
Drastic Features.
ECHO OF PUJO HEARING
Sections Cited That Brokers
Say Would Kill All Pub
lie Trading.

stock Exchange men wiio have exam
ined the Owen bill regulating stock ex-
changes say that II Is so drastic and i'm
possible In some of Its features that no
primary market OF importance for seouri-
ties could exist long under II. Business,
II IL asserted, would be so hedecd about
BY uncnforceable rules that trading In &C.
curities would be driven away from pub
lie markets md would take to private
sales. with great consequent loss 20 the
public In protection and serious ohstruc-
ton TO the financing of corporation needs.
The Stock Exchange has begun active
consideration of the bill copies OF which
did not arrive until Saturday. A meet
ing OF a number of governors. with Prest-
dent Mabon In attendance. was held yes
terday at which IT was taken UP. A
strong campaign against the drastic Tea
turee OF the bill is promised.
The bill was framed by senator owen
In conjunction with Samuel Cntermycr
and is accepted az one of the fruits of
the Pujo Investigation.
The bill provides two alternatives FOR
exchanges. Incorporation or being put I'M
der tho supervision of the Postmaster
General. Incorporation was fought and
defeated At Albany when proposed last
year. The Postmaster-General supervis-
ion plan. Il is commended. presents n charyb-
dis equally fatal. Under such supervision.
one OF the most drastic provisions, II Ia
pointed out, Is that stool; exchanges must
require a sworn statement from compa-
ME. filing securities This sworn state
ment must be accompanied by copies of
all contracts for the sale OF securities
made by the companies with bankers,
showing the fees and charges In connec-
tion Herewith. The difficulties inherent
st... .ui. not La raI
practically insurmountable by the fact
that this IL required not only of lstines
% be made but Of all the corporations now
listed
The whole force OF the bill. Il IS pointed
ouf, IL In the nature OF a club over tho
exchanges OF the country to accomplish
reforms in corporation practices tina.
should be made I'm direct antitrust log1s-
iation. II at all. This weakness of the bill,
said lawyers yesterday. suggests that
" has not the sanction Of the Admins
traiion but Is a measure outside OF the
regular antitrust programme.
illustrating the use OF the stock eS-
change as club over corporations II
was pointed out yesterday that corpora
lions In order TO list their securities must
disclose all agreements and transactions
between officers and the corporation. This
inquisitorial requirement would bring n
refusal of corporations 10 list and would
take from the exchanges many leading
issues.
The bill contains a provision which II
believed 10 confer the extraordinary prvi-
lege upon the Pcstmaster-Cieneral OF open
ing mail of those doing stock exchange
business in searching COR transgrrssions
Imprisonment OF from one to two and less
than live years is provided for violations
OF the law, these penalties including the
management of newspapers. telephone and
telegraph companies and others carryirs
exchange quotations or connected with "a.
change business.
1t is confidently believed that the BIZ
will be greatly modified before Il can pass
The advance Of $4,000 10 $50 900 weston.
day in the price of TWO Stock Exchange
seats sold supported the conclusion that
stock ENchauCe men do NOT believe that
menacing legislation can pass