The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-04
STOCK EXCHANGE
REGULATE CURB
VIII Establish Rule That All
of Its Members Must Report
Their Curb Dealings.
TO PUBLISH SUCH SALES
Details of Plan Are Not De-
cided, but Will Not Hold Up
Indoor Curb Project.

The governors of the New York Stock
Exchange finally have decided to adopt
n policy Of regulation toward the Curb,
according to the announcement made
yesterday by q member OF the board.
The details Of the regulation plan have
not been worked out. but the general
policy has been decided on. One of the
first steps to be taken win be the es-
Enlistment of a rule under which every
New York Stock Exchange member
whose house transacts any business on
the Curb, must report daily all of his
curb transactions to the secret Try OF
the exchange. These reports win be
tablulated by the exchange staff and
turned over to the newspapers for pub
LEGATION.
we are going to attempt to regulate
the Curb" was the declaration OF an
Exchange governor yesterday. "Among
other things we are going to force all
of our members to report all transactions
daily that they have made on the Curb
TO the secretary's Office or to a commit
tee. These transactions are to be tab
ulated and given to the newspapers as
soon as possible every day.
THE plan is In its infancy. and de-
tails will have to be worked out We
have decided on the general policy. We
will put our best efforts into regulating
the market for Curb securities.
Many years OF experience have
shown that in our opinion there will
always be q curb market, whether the
present Curb market goes. indoors or
not.
Eighty per cent Of the business put
across the Curb market Is done for
the account of Stock Exchange houses.
We will not be able to force brokers
not members of the New York Stock Ex-
change to report their Curb dealings TO
US, but as far as our own members
are concerned they will be forced to
do so.''
In that manner, It was pointed out.
some of the evil of the Curb can be
eliminated. One OF the biggest troubles
about the outside market, according to
a member of the New York Stock Ex-
change governing committee Is the
number Of wash sales said to take place
daily. These sales, In which there Is
no actual change of ownership In the
securities traded in, are conducted solely
10 show a market for stocks. Members
OF the New York Stock Exchange are
prohibited from engaging in a transac-
ton Of that kind and by requiring a
report on all of their Curb dealings the
exchange authorities believe they can re-
move to some extent at least the WASH
sale evil.
BY adhering strictly to the list OF
transactions to be tabulated and given
out by the exchange from members re-
ports, the governors believe they Will
have accomplished another purpose.
When II becomes known generally that
the stock Exchange list Of Curb dealing
is a record of bona fide transactions
only II will be accepted, 1t Is believed,
as the official record Of Curb dealings.
and the better class Of Curb houses the
business of which IL conducted in a le-
ultimate manner, will seek to have their
transactions recorded. In that way. II
In expected, the undesirable element OF
traders will suffer for lack OF publicity
of their TRANSACTIONS Under the present
method all Curb sales are grouped In
one record and there IL no way in which
bona fide sales can be told from wash
sales.
The New York Stock Exchange has
Amounted a committee to go ahead Win
the plan for curb regulation. The chair
man Of the committee is II. K Pomeroy'
chairman of the exchanges law com,
mittee. II. G. $. Noble Is member OF
the committee.
e. r Mccormack, chairman OF the
New York Curb Market Association, de-
clined to comment yesterday on the ac'
ton taken by the exchange governors
except to indicate that 1t would make nc
difference in the curb associations plan
10 betake itself indoors. The arrange
ments for purchasing a building and put
ting a roof over the heads OF the curb
brokers will go on uninterrupted MI
Mccormack said.
Mr.. Mccormack declared that OF thu
total subscribed for stock in the New
York Curb Market Realty Associates
Inc, more than s47o.oo0 had been paid
in and was In bank He said that every
member of the association who had beer
asked TO subscribe to his share OF thf
stock OF the realty company. which would
construct. and own the Curb Market
building, had taken his allotment and
that only sixty-two members had moi
subscribed. He explained that the sixty
two we're in Government service or other
wise inaccessible to the committee, ou'
was confident that every one of the 5O'
members of the association would take
his allotment OF the stock.