The Barre daily times. (Barre, Vt.) 1897-1959, 1914-02-05
Purpose of the Owen Bill
Before the House
Committee
UNTERMYER A
CHIEF WITNESS
All Channels Of Fraud
Would Be
Closed

Washington Feb. with represen-
tatives of the New York Stock Ex-
change appearing in opposition to the
measure and large number OF wit
nesses ready to urge its enactment, the
Senate committee on banking and cur
rency yesterday began hearings on the
Owen bill designed to prohibit the use
OF the mails, telegraph and telephone
fines for the furtherance of unlawful or
harmful stock exchange transactions.
Samuel Untermyer of New York.
called at the personal invitation OF
Chairman Owen, was the chief witness
In advocacy of the bill. He cited nu-
merous court opinions and recommen-
dations of the House committee which
favorably reported similar bill in the
sixty. second Congress. "The only de-
batable proposition, to my mind" said
Mr.. Untermyer, "are whether there can
be effective regulation of the stock ex-
changes by Congress without requiring
incorporation, and whether, If incorpor-
alton is necessary, it should be directly
under Federal law or whether the Con-
nress should enforce state supervision
by prohibiting the use of the mails, tele-
graph and telephone in interstate COM
munication to stock exchanges that are
not Incorporated under the laws of the
state in which they are located, with
state supervision and with such other
safeguards as Congress may prescribe
Reasons for Incorporating and regu-
lating the exchanges were summarized
by Mr.. Untermyer as follows:
To prevent and punish the practice of
frauds upon the public through manipu-
lation, matched orders, wash sales of
which apparent values are created for
securities in the worlds markets.
TO secure complete publicity OF the
profits of bankers, brokers and interme-
diaries in the ilotation Of companies and
the exposure of all the salaries COM
missions and other profits of officers and
directors, through the control of the de-
partment OF exchanges for the listing of
securities, and to prevent securities that
have once been listed from being striek-
en- from the list without notice and the
right of review.
Mr.. Untermyer asserted that ineor-
poration and rigid regulation Of ex-
changes was essential to the public pro-
lection. "My contention" he said, SIS
that without the aid of Incorporation
exchanges viii be unable to put an end
20 illegitimate practices and that the
best element in the membership should
welcome the proposed legislation"
John G. Milburn, attorney for the
New York stock exchanges; James b.
Mabno, its president; H. II. Pomeroy, a
former president, and w. c. Van Ant
werp, one of the stock exchange govern
ors, also appeared at the hearing. SEN
ator Weeks objected to the Pujo money
trust report being taken as the basis
for the committee to urge a stock ex
change regulation BILL saying much of
the evidence before that committee was
erroneous.
81 resent the suggestion that there
was anything unfair or partisan about
that investigation" declared Mr.. I'm
termyer $50 great was the misrepre-
sentation that the truth of the hearing
is Just getting out. Statements were
made that the investigation cost $780,
900, whereas it was known it cost only
100000. ! was criticised for my firm
receiving $4,000 for my eight months
service with the committee The facts
are / spent $4,000 of my personal funds
on the work for which / was not com
pensated" He added that he spent
$4,000 distributing $4,000 copies of
the report after he failed to get the
House to print more than $4,000 copies.