The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-10
SWAMI URGES
LICENSES FOR
STOCK BROKERS
COnfers With Curb and
Other Dealers on Plan to
End Frauds.
THEY OPPOSE PERMITS
Outside Group Ready to Build
Exchange and to Investi-
gate Securities.

Three ways OF ending the scandalous
conditions which have permitted ire
sponsible brokers, stock jobbers, pro-
moters and oil and mining companies
TO play horse with the public's money
were discussed yesterday in the Dis
trict Attorneys Office by Judge Swami
and his assistants on the one hand
and on the other by representatives
OF the New York Stock Exchange, the
Consolidated Stock Exchange and the
New York Curb Market Association.
1t was suggested first that the curb
brokers quit the open air OF Broad
street and go inside a building, and
second that the curb association pro-
tect both Itself and the public by in
vestigating all securities offered for
trading and declining to list or handle
those not proved to be sound Spokes-
men for the association assured Judge
Swami that both these steps had been
decided upon and publicly announced a
few days ago.
oFuhu Jury nj WORK.
The third proposal put forth by the
District Attorney was that the city,
through the Board Of Aldermen. compel
every stock broker to take out a IL
cense, pay a fee for 1t and subject him
self to regulation by the city authorities
This the curb brokers didn't like at all.
The conference, held at the invitation
Of Judge Swami. lasted two hours and
followed the adjournment for the day Of
the Grand Jury, before which Assistant
District Attorney Dooling has laid evi-
dence concerning the exploitation of
stock OF the Rangeburnett oil Company.
a rumor that two indictments had been
found was officially contradicted. 1t was
expected, however. that some kind Of a
presentment might be made to-day.
OF the 500 brokers doing business on
the curb about half are members OF the
Curb Market Association. The others
referred to by one of the association
members as pirates. were not repre-
sented in the District Attorneys pow
wow. The association spokesmen were
e. r. Mccormick. chairman; A. b,
Jr., counsel. and John V. Dunno. chair
man of the welfare committee.
For the Consolidated Stock Exchange
there were W. S. Silkworth, president,
and ]. f. Lynch, secretary. Ashbel
Greene of the committee on quotations
Of the New York Stock Exchange rep
resented that body. NJ. v. Werner. pres
ident, and c. NJ. Mintor. vice president
of the bankers and brokers' investigat-
md hV.NA nl0 In.
The Curb Market Association was pic
tured as a band OF honorable men
greatly interested by the Hllainies of the
outside traders. but unable to control
them and having no supervision over a
great number of stocks which the asso-
citation does not list. Judge Swami gently
suggested that the association members
might decline to deal in unlisted Sc
curities. Mr. Leonard replied that this
was impossible so long as the market
was in the open. He also pointed out
that the curb is naturally the trying out
place for new securities. some of them
OF great value. and that some of the best
stocks, notably Standard OIL, were not
listed
Couldn't you get up a QUESTIONABLE
and get complete information regarding
new stocks. SO you'll know which are
dubious?' asked the District Attorney.
our intention, and We can approve or dis
approve a proposition accordingly. 1t is
true" he added, that as to certain
stocks put out by outsiders to fleece the
public we have been somewhat negligent,
hut we intend TO correct this, and are
working along that line with our well
fare committee"
Can Get site in Three Weeks,
Judge Swami remarked that II the
curb association would go inside a
building and control its members I'VE
could control those on the street" Mr.
Dunno said he thought the association
could find property in three weeks on
which to build and could erect a perma-
nent structure in four or Ave months.
He said the associa tion did not want to
get into an unsuitable, unsanitary. tenn
porary abode.
He wanted Judge Swami to guarantee
that "the rabble' would not be per-
mitted to operate in the street IL the as
ISOLATION went indoors. Judge Swami
replied that this was up to the Mayor
and the Police Department. whom he
was sure would enforce the law under
which Broad street could be kept clear
for traffic.
Attorney, you can sweep the crooks
out"
The sooner We do the better Wen be
pleased" Mr.. Dunno said.
Judge Swami didn't see why the Curb
Market Association did not investigate
all the stocks now on sale. THE in
'estOr is really buying a pig In a bag, -
he said. 1t seemed that the associa-
"