New-York tribune., 1919-02-18
Stock Exchange War
On Fake Promoters
70 Be Nationwide
Bankers and Business Men
Will Have Representation
on Strategy Board in I'd
Federal Reserve District

The Stock Exchange purposes ulti-
mately to make its campaign against
the activities of "predatory pro-
moters" nationwide. This was dis
closed yesterday at the meeting in the
rooms Of the Chamber of Commerce
called for the purpose of uniting New
York's leading banking and business
interests on a concrete plan of action,
the scope of which at the start will
be confined to the territory of the
Second Federal Reserve District
permanent committee, whose mem
bcrship will probably consist Of rep
resentatives of the Stock Exchange,
the American Bankers Association
the Investment Bankers Assoc ciation,
the Chamber of Commerce, the Mer-
chants Association, the Liberty Loan
Committee and the Federal Reserve
Bank, will undertake to carry out in
definite way the ideas of the back
crs of the movement against stock
swindlers and in behalf of Liberty
bondholders. Members of this COM
mittee already selected include Fran
cis II. Sisson, vice president of the
Guaranty Trust Company, and Jason
Wcsterfeld, of the Stock Exchange
Library Committee.
Publicity Essential
in view Of the evidences of the
vast extent to which the new Liberty
loan investors have been victimized," !"
said statement issued after yester-
days conference, "the meeting was
unanimous in favor of some action
which would unite all of the sound
business interests of the country in
a publicity and educational campaign
1t was shown that the Treasury De-
partment was already doing all that it
could in the way of preparing legis-
lation which would check the evil at
the source-that is, supervise the
issue Of securities The Secretary Of
the Treasury himself, however, made
it clear in letter 20 the Stock En-
change that it was essential that iegis-
and education.
"Before adjournment it was decided
to form a permanent committee of
men experienced and qualified by their
studies OF the problem to draft a
programme winch would, in a prac-
tical manner permit the various busi-
ness interests in the Second Federal
Reserve District to unite in the sup
preston of stock swindling in said
district AS soon as the campaign is
actively launched in this district it
is proposed to extend it's scope that
eventually the entire country will be
included"
A letter TO Mr.. Westertield from
Carter Glass. Secretary of the Treas
ury. under date of February 12, was
read at the meeting, in which he said
81 am genuinely glad to note that the
New York Stock Exchange is starting
general movement to check vicious
operations in worthless and fraudulent
securities, pending enactment of suit
able legislation by Congress. Very
likely the work of the Stock Exchange
movement might be protitably contin-
ued even after Congress shall have
acted on the bill sent up by me some
days ago. 1t is quite certain that in
the absence Of the proposed legisla-
ton the Stock Exchange movement
Will not only be desirable but almost
essential"
A communication from Charles s.
Hamlin, chairman of the Capital Is
sues Committee, also commended the
PLAN of the Stock Exchange for bring
ing together representative business
men and bankers in body to sup
press the stock swindling evil.
Many Interests Represented
Those present at yesterdays meet.
ing included Alfred f. Marling, presi-
dent of the Chamber of Commerce
Pierre jay, chairman of the board OF
directors of the Federal Reserve Bank
of New York; John j. Pulleyn, repre-,
sentng the savings bank section of
the American Bankers Association; II
6. S. Noble, II. K Pomroy and Mr.
Westerfeld, representing the Stool
Exchange; G. W. Hodges, w. H. Max
we'll, jr., and II. F. Beebe, represent
ing the Investment Bankers Associa
ton; John Price Jones, head OF The
Liberty Loan publicity committee
Francis H. Sisson, vice president of tho
Guaranty Trust Company; +. O. Stan
ley, of the Title Guarantee and thus
Company; George E. Roberts, assistan
to the president of the National City
Bank, and j. W. Bramhalr, representins