The sun., 1917-11-02
LAYS
RAID TO PLOT;
CHECKS SHORTS
Daily Lists Required by
Rule to Prevent Another
Drive on Market.
PRICES HIT Low RECORD
PrO-German Intrigue Seen in
Wild Sales-U. s. Steel
Drops 6 10 Points.
PRICES HIT Low RECORD

Short selling on the New York Stock
Exchange is to be checked, or at least
regulated carefully. beginning to-day.
That action was decided upon by the
governing committee at the close Of
day Of wild selling which broke the
whole list and in the case Of many Sc
curties established new low record
prices. two to seven points below the
previous days close. Throughout its
long history the exchange has been the
stanch champion Of the short selling sys-
TEN. defending II as an economic neces-
sity. But yesterdays break and conse-
auent hystera were accompanied by such
ugly rumors that precedent was cast
aside.
The belief was that pro-German plot
ting was responsible for the break, to-
gether with the operations Of bold specu-
latois not above taking advantage Of the
aliens work for. the bear side OF the
market
Committee TakeS Action.
| A special meeting of the committee
was called, which within fifteen minutes
adopted the following resolutions:
! Resolved. That all members Of the
I exchange. or their hrms. who are bor-
rowing stocks either for themselves or
! their customers are required to fur
n!sh daily by IL o'clock noon to the
! committee on Clearing House of the
! New York Stock Exchange at 55 New
street. a list OF all stocks borrowed
such list must state the name and
amounts of the borrowed stocks and
| from whom borrowed.
At the same time they must deliver
in sealed envelope list Of the names
Of customers for whose account such
{ stocks are borrowed and the amount
borrowed for each customer. These
sealed envelopes will be inspected by
the committee on business conduct in
their discretion.
Resolred. That all members OF the
, exchange, or their firms. who are lend
4 ing stocks, are required to furnish
daily by ~ O'Clock noon to the COM
nttee on Clearing House OF the New
York Stock Exchange. at So New
street. 4 list Of all loaned stocks such
LIST must state the names and amounts
OF such loaned stocks, the names of the
/ borrowers OF the same and the amount
! loaned to each borrower
The now familiar report that the ex
change contemplated closing. ana II!
variant, that tho exchange was consider
ing drawing up a list OF minimum prices
were the ugly rumors' circulated widel,
yesterday. These rumors are denied daily
The board OF governors believes thos
enemies of the United states who woul,
like TO see financial ruin widespread ar,
responsible for the persistent false ne
ports and for much of the selling. Th
resolutions are designed to get at tn
Identity of the culprfts as we'll as /,
direct careful scrutiny to all short sales
Seek to Curb Traitors.
A person in a position to know wha
occurred at the meeting Of the governor
asserted thst the committee does not IN
tend to stop legitimate short selling, bu
proposed to end vicious selling OF stock
10y traitors who have been causing I'm
necessarily large losses to investors II
said the Information that will be oh
tanned by the exchange authorities re
gard!ng short selling will be at the dis
= posal Of the United States Government
It II desires to look over the data. II
added that wherever any culpr!ts an
traitors are unearthed their names wi
, be promulgated so that the whole coun
try may know the guilty ones.
The governing committee. 1t is under
{ stood did not discuss the ESTABLISHING r
of minimum prices, although IN som
ouIrters it Is believed that this is
= possibility IL the action taken ycsterda
y royti,rc1 n, Third puoe