New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-11
Hints Banking Committee
Is Sidetracking Stock
Exchange Bill.
RESENTS QUESTIONS
OF PERSONAL KIND
Lawyer Insists Regulation OF EX-
changes Is Necessary to
Protect Public.
From The Tribune Bureau.

Washington. March 10.-Samuel Inter
myer. OF New York. was subjected py
Senator Hitchcock TO a grilling cross-eA-
animation concerning the part ne mas
PLAYED In various financial transactions
in the past. when he appeared before the
Senate Banking and Currency Committee
to-day to give further testimony concern
ing the bill for the regulation OF stock eN-
changes.
Senator Hitchcock asked series Oh
questions relating 10 Mr. Cntermyer
connection with the sale of STOCK OF 'ne
Kanawha K Michigan Railroad ana Tue
organization OF the Star Paper Company
TO take over several strawboard manu-
featuring plants in the United States.
Mr.. Untermyer denied with considerable
heat that there had been anything repre-
hensible in either transaction.
This is A way Of sldetrackng the Is
sue" the lawyer said to Senator Hitch-
cock mot meeting it. II there had Deeh
anything of this character in my HE that
was wrong / would not be here attempt
ing to devote myself to the public service.
81 don't know what your animus Is
but II is an animus. l don't want protec-
ton" he added. when a member or the
committee sought 10 intervene in his be
half. but | don't want to waste time. !
came here at the request OF the commit
tee. at great sacrifice, and most Of the
time has been taken up In atercatloh
with Senator Hitchcock.
Nelson a Peacemaker.
Senator Nelson sought to pour oil on
the troubled waters by saying that Mr.
Untermyers experience would be Naiu-
able to the committee. "One time when
We had a racetrack bill up one of the
most valuable witnesses was reformed
gambler" the Senator added.
The illustration did not precisely please
Mr. Untermyer who declared that the
charges that he or his clients had been
involved in improper transactions in con
nection with the sale OF the kanawha x
Michigan stock were inspired by the pub
Lefty department OF the New York Stock
Exchange Mir. Untermyer's allegation
was denied in letter from J. 6. Milburn,
counsel for the exchange, but this did not
change his views. Mr.. Allburn, he in
sisted, had been misled
Mr. Untermyer also denied statements
contained in an opinion by Nice-Chancel-
Tor Pitney. of New Jersey. and Justice
Brown, of New York. that he and his as
sociates had acquired without cost TO
themselves a large amount OF the stock
OF the proposed strawboard concern. He
said that he had been deceived himself
and had, with his partners, lost 5000 600
| In the transaction.
Hitchcock Still Suspicious.
you are here urging legislation TO pre-
| vent corporations from overcapitaiiZ-
ing" said Senator Hitchcock. yet in
| these cases it was shown that you were
organizing companies I'm the same way.
| You are here as a witness and, to ne
| frank, | am suspicious. / don't propose
| TO stand you up on pedestal
you were suspicious before any one
opened his mouth" retorted Mr. Inter
| myer.
Senator Weeks objected to the pending
bill as falling TO provide remedy ior
dishonest manipulation OF the market
Senator Reed asked Mr.. Untermyer II
he did not believe that all gambling trans
| actions on STOCK eNchdhseS shouia -
prohibited The witness replied mat the
| bill limited these. but that II would take
| a brave man to offer more drastc one
| "The abuse I have received would be "A
summer zephyr compared TO what he
| would have TO face" ne added
Mr.. Untermyer declared tnat opponent
OF the bill had been forced TO admit ina,
| federal regulation OF stock exchanges
was necessary. For state incorporation
! and postal supervision, as proposed IN
the Senate bill, the opponents had laileu
| to poInt out an effective alternative.