The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-05
CURB DECIDES TO
CLEAN ITS HOUSE
Association Selects "Welfare
Committee" to Probe Into
Proposed Listings.
TO BAR THE WORTHLESS
Before Pushing New Unlisted
Securities Members Must
File Full Information.

The New York Curb Market Associa-
tion--representatives OF that boiling,
seething mass OF young men which clogs
Broad street every day and trades in
every sort OF stock--has decided to set
| Its house in order. The decision was
reached at meeting OF the associations
board OF Representatives. following ais
closures made In THE Sun concerning
certain worthless oil stocks. in which u,-
suspecting investors had lost several
thousands of dollars.
Financial reporters were called to the
offices OF the organisation yesterday af-
ternoon and informed that a general
welfare" committee had been formed
and that It would be the duty Of the
committee, all members of which are
members Of the association. to investi-
gate stocks In which application TO list
should be made, and II the Investigations
should show them TO be worthless to bar
them from the curb. The committee IL
composed of John V. Dunno. chairman !;
N. p. de Mauriac. William ]. Gerety and
c. C. Kerr.
The move follows q series Of confer
ences of +. r. Mccormick, president Of
the association, and A. B.. sturgess, It's
secretary, with District Attorney Swami.
As a result OF the conferences and an
investigation OF certain transactions IN
securities traded In on the curb the fol-
lowing resolution has been adopted by
the board Of representatives and sent to
every member Of the association:
"Resolped, That members. before pro-
noting or advertising any new unlisted
securities. are instructed to file pros
pectus or statement giving all informa-
ton In their possession relating to such
company with the secretary's ONCE, and
any violation OF this resolution shall be
deemed an act detrimental to the inter-
ests and welfare Of the New York Curb
Market Association"
1t In the plan of the committee. ao-
cording to Mr.. Dunno, to scrutinixe care
fully credentials of stock, for which list
ings shall be applied. II they be unsat.
isfactory, and. as Mr.. Dunno termed Il,
"if its purpose appears to be to fleece
the public" the problem IL 20 be put
up to the District Attorney. The coop
Grafton OF the newspapers was asked for
by the committee. They have been asked
not to publish quotations or advertise
ments Of or give publicity to any COM
pany turned down by the committee.
In listing a stock on the curb these
requirements are made with the applica-
ton: Statement OF assets. liabilities,
earnings and expenses signed by an off,
Ger Of the company with seal attached
and sworn to before a proper court off,
ceEor notary public; engineers report
or a certified copy: certified copy OF char.
ter and bylaws; also certified copy of
certificate Of Secretary Of State, covering
Date Of filing Of articles Of Incorporation,
map of the property; copy OF annual re-
port OF prospectus duly authenticated list
of the officers and directors with their
addresses, and an individual banking
reference for each; transfer Office and
registrar at New York: list OF any
leases; specimen copy of New York
stock certificates: certiHcation by an
officer and seal Of company attached to
all papers submitted"
I'VE have been the goat in this thing
about long enough" said ono OF the
officers OF the association in discussing
the new committee. "The curb market
is a broad market a great many
valuable securities are traded in there
We are going to do our best to make
1t clean market. when some crook
comes in-over whom we have no au-
thority at all--advertises far and wide
in all the newspapers that will take the
glazing advertisements that a market
will start on next Tuesday or wednes-
day or Thursday on the curb for this
stock and then the public buys It and
gets stung the curb market gets the
blame. II you will look into these
shady propositions that have been fioated
since the first of the year you will find
that they have been put out by men who
have flocked here from the West and
South who are here to-day and gone
to morrow and who are not members Of
any organisation or exchanges, such as
ours. by which their actions could be
oEtrolled."
In simple justice to the officers of the
1t may be stated that In
many cases their haisds are tied for two
reasons. Amy one who cares to may
trade on the curb whether he Is a men,
Der Of the association or not. A secur-
ity need not be listed with the associa-
ton. Any one may bring out any stock
and start a market for It. Over the
and over the unlisted
stock. of course. the association has no
control.