New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-06-24
STOCK EXCHANGE
CONTROL ISSUE
STIRS LAWYERS
Untermyer and Milburn at
Odds Before COnven-
ton Committee.
FORMER INSISTS
ON INCORPORATION
Milburn Declares States Police
Power All 1t Needs TO
Regulate Exchanges.

Iron star tnT-frpoHdr nj inc l'""''I
Albany. June 23.-John G. Milburn,
counsel for the New York Stock tx
change, and Samuel Untermyer, who
has been an ardent advocate Of gov
e,nmentaI control Of stock exchanges
and boards OF trade, engaged in a bit
ter wal Of words n a hearing before
the committee on corporations Of the
Constitutional Convention to-day when
discussing Israel T. Deyo's proposed
amendment providing for the incor-
roration of such bodies and their reg
ulation by the state.
Mr.. Untermyer attacked the Stock
Exchange and it's methods. Mr.. Mil
burn. in reply, said he had corrected
NJ least rs per cent Of Mr.. Untermyer's
statements again and again in public
speech and in print, but without any
seeming effect on the foe Of the ex-
change.
"lhis proposed amendment" said
Mr.. MIburn, "is an elaboration Of the
system Of examination and espionage
Of private business that ! believe is
going too far
Mr.. Urtermyer's main argument was
that in the Stock Exchange was the
very groundwork Of the countrys hnan-
cial system, and as such it should be
Incorporated and subject to govern
mental regulation.
States Right Sufficient.
Mr.. Nilburn said the state had,
through its police powers, the right
TO regulate the exchanges, and it ex-
ercised that power. With respect to
incorporation, he said:
.Tncorporation would destroy the dis
culinary powers Of the board Of gov
ernors Of the Exchange, which can
very quickly under the present system
bring 70 task any Of the members who
violate its rules or bylaws. If it were
Incorporated it would mean that a dis
honest broker, who now can be eX-
peIled at once. would, while appealing
TO the courts. be enabled to maintain
his seat on the Exchange. Moreover,
INCORPORATION Of the Exchange would
pluuCe il into politics, and 1t never
has been in politics.
Mr.. Uptermyer said governmental
control was absolutely necessary. lie
declared there should be some super
vision over the ratings Of listed securl-
ties which, when published, were the
basis of computations Of banks, guard
inns and courts in fixing values.
"Unless there is governmental SUI
per,isiou," said the lawyer, there is
no way Of telling + the prices quoted
are fictitious or real. The Stock TX
change managers can, but the puDHc
cant, and neither can any govern
mental agent"
Mr.. Untermycr gave lurid descrlp'
ton of alleged daily stock manlpula'
tjons on the Exchange, and an account
of the alleged manipulation of Rock
Island, which was limited at before the
Interstate Commerce Commission
fortnight ago.
Cites Rock Island Deal.
within the last three weeks" sale
Mr.. Untermyer, eve have had an ex
annie of stock manipulation in thu
case OF the Rock Island road OF
March % the insiders decided to pu
the read into the hands Of a receiver
At that time the stock was selling a
SIS share. On April 20, when tn
stock had been boosted to 500 a share
the road was pat into the hands Of {
receiver and the stock dropped at once
TO 500.
"This was one Of the most colossa
swindles Of the Street and il was per
petrated by the same people who PLAYED
the same game in 1909"
"The first ! ever heard Of this,
said Mr. Milburn, was on the traii
coming from New York this mornin,
from Mr.. Untermyer, who is counse
for one Of the fighting elements in tn
Rock Island imbroglio. If the fact
are as Mr.. Untcrmyer states he woul'
be performing a public service t
bring the matter before the Distric
Attorney Of New York City"
Peter Donovan, Democratic mem
Der from The Bronx, interrupted Mr.
Milburn 70 say: If what Mr.. Inter
myor says is true, green goods mel
and wire tappcrs are canonized saints
by comparison
81 repeat" said Mr.. Milburn, "wh,
does not Mr.. Untermyer take his fact
TO the District Attorney? There ar
at least three ways in which, If wha
he Gays is true, these men could b
punished"
"But Mr.. Untermyer said that tn
District Attorney is powerless," put il
Mr.. Donovan.
well" Mr. Milburn replied, 81
what Mr.. Untermyer says is true, thes
men, TO start with, engaged in
criminal conspiracy
"KinV" Of Puio Committee
Mr.. Milburn went on TO tell that Nh
Untermyer said the same things T.
members of the Pujo committee
"In the Pujo committee" said Nj
Milburn, "Mr. Untermyer was not onl,
counsel, but king. He ran the thin
10 suit himself. All questions tina
were put TO witnesses had 70 be frs
written on a piece of paper and thei
submitted to Mr.. Untermyer for hi
10 X"
Mr.. Untermyer interrupted to sa,
that the report of the Pujo committe,
was signed by its members.
The hand was the hand Of the Pujt
committee but the voice was the voic,
of Samuel" said Mr.. Milburn. who add
ed that he had argued the same propo
sitlon before the State Senate Commit
tee on Judiciary during Governor Sui
zer's first term.
1.-THE committee reported Hdversel,
on the subject of incorporation, and j
was sustained by the Senate by a vot,
of 80 10 s." continued Mr. Milburn
and at the time Mr.. Cntermyer sal,
some unpleasant things about the bill
and the way il was drawn"
II said il was a blind and fraud