New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-06
WALL STREET,,
PLAYING SAFE,
PUTS ON BRAKES
Exchange and Bankers
Move to End Wild Specu-
latiOn on War Babies.
4 TO Is POINT DROPS
FOLLOW WARNING
Odd Lot Dealers Mark Up Fees
Clerks Barred from
Trading.

Banks. trust companies and tho larg-
or financial houses. alarmed at the
swiftly ascending tendency of the mar
ket and fearful Of a sudden break in
values, combined yesterday TO set the
/ financial brakes and apply pressure on
Stock Exchange houses to diminish, II
not entirely end. the riot Of speculation
| in "war stocks
Many Stock Exchange houses, seeing
l trouble ahead, responded TO the pres
sure by notifying their clients that
/ they would have to double the amount
Of their margins. Those specialties
which have been the chief speculative
stocks have, with few notable ex-
ceptons, been carried on a 20-point
margin. Hereafter the margin will be
80 points until such time as the mar
ket becomes normal again.
When the demand for more margin
2as made yesterday many buyers were
unable to comply and wave of selling
orders swept the exchange, carrying
stocks down from to 10 points. A
recovery was noted later in the session,
but the close was from 3 to 10 points
off the high level.
Official cognizsnce Of the situation
vas taken b. the Stock Exchange at a
special meeting of the governing COM
mittee, which was unanimous in the be-
lief that something should be done at
once 10 curb speculation. The demand
for more margin seemed sufficient for
the first step, so the committee de-
cided simply to sound a warning by
calling the attention Of all Stock Ex-
change members to resolutions already
in force.
Warning Notice Posted.
The following notice was sent by
George w. Ely, secretary, to every
holder of seat on the exchange:
81 am instructed to ca attention OF
members OF the exchange to the fol-
lowing resolutions adopted by the gov
erning committee, with the request
that they particularly admonish their
branch Office managers to be constantly
guided by said resolutions in the per-
formance of their duties;
THAT the taking or carrying of n
speculative account or the making OF
speculative transaction, in which
clerk of the exchange. or of q member
of the exchange. or of bank. trust
company, BANKER, or insurance COM
pany, is directly or indirectly interest
ed, unless the written consent OF the
employer has been first obtained. shall
be deemed an act detrimental to the
interest and welfare of the exchange.
"'That every membe- of the eX
change be required to use due diligence
10 learn the essential facts relating to
every account accepted By himself or
by his clerks or representatives, and
also relating to the possible use Of
name for the account other than that
of the party interested.
THAT the acceptance and carrying
of n account for =. customer, either
member or 2 non-member, without
proper and adequate margin, may con-
stitute an act detrimental to the inter
est and welfare of the exchange, and
the offending member may be pro
ceeded against under section of arti-
Gle AEll OF the constitution.
Gold Tales Caused Fear.
The action of the exchange is the
result of discussion for more than a
week between the banks and the rulers
OF the exchange For some time Wall
Street ha, appeared as the pot of gold
at the end of the rainbow which
stretched over the entire country.
Tales of fabulous riches TO be made in
stock market gambling have made the
financial section the mecca OF a horde
of speculators from coast 10 coast.
Typical of a hundred others is the
story of a man who came 10 Wall
Street four or five months ago with
less than 81 900. To-day he IS worth
more than 100000 OF the men who
lost, there is no story told. yet the
records OF brokers Offices show that
they are in the great majority.
Speculation has been confined chiefly
10 the stocks of certain companies
which are reported to have received
enormous war orders. In the ajority
of cases, the amount of war orders
has been greatly exaggerated Notable
in this is the American Car and
Foundry Company. Bethlehem Steel
stands at the top OF the speculative
list. Last year il sold as low as
fraction above %. Yesterday il touched
400. Crucible Steel, selling yesterday
at 1903, was sold for - few months
ago Westinghouse was up to l37, a
tremendous advance over its selling
price of a few months ago.
To discourage speculation, many
banks within the last week have cut
in half the sums they had advanced
on certain war specialties and thrown
out others altogether. For weeks past
there have been frequent additions 20
the string of conservative brokers who
have refused to buy war stock for