Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-05-06
BROKERS RESENT
TAKING OF SALES
Proposal Of Ways and Means
Committee Pronounced Dis
astrous for Traders

,.-,, a., r.. s ,,,oh
'io"e"so "ouee sa,u .ne ."'''
a tax, In ADDITION TO the taxes aireauy
levied on such transactions, will be a
lrast;c reJ,,ct;on of businoss done. and
the total destruction of market Tor
securities under certain conditions. 1t
win ho d;sostro,s for traders. the men
...' ~, ao,,;,o
make business o, ouy'ns anu se'''"s
who stocks, relying for their profits upon
small changes In the market.
Thoso .,on o-e ossontio, to tho we'll.
~,
being OF the country. Ihey are the peo-
pie who are at hand at all times to buy
and so,i and nrov;do a market for more
Investors who wish to pur-
chase or d;snose Of stocks
The nroposed tax would nut these peo-
rIc ont of bus;nesS hc said and In that
wav would make il ;mnossible for per
sons ,Io wish IN sell to ana n market.
Tn order that every announcement
should he given. he said. to those who
nut their capital into productive indus.
dustries II il essentia, that they be. fur
nisbed with n free market for the Sc
curities they receive in return for the
If the nrOuOgpd tax ROpS into erect
there will be no free security market
In the limited States, he remarked, and
the owner of such securities who wishes
to realize on them must sacrifice them
or wait until he finds some man who
wishes such an investment, as the trad
ers will have disappeared,
The German Government. he said, at
one time tried interference In stock ex.
change transactions and increased the
cost, with the result of driving the bust.
ness to foreign exchanges and, as q re-
suit. German capital flowed to other
cepters for investment.
81
;ncrnosed nr;ces was Leaked mon with
favor In the financial district, For some
time mast the stock market had been
ragorded ne roo much one. sided the in
d,,str;ais cja;ming FOO much attention.
Eny matter. are moro ovonjv balanced
This was rho oninion of n member of
e., 80 hroLoro rn,tardnr Ono thing
more, he said. is needed 10 complete the
confidence of investors. and that is more
activity in conners Rut hc continued.
that Is coming. and according to the best
source of information. will soon be here.
He gave as A reason for the spurt ia
rail issues the possibiIity of the Inter
state, Commerce. Commission granting
tbe increase in freight rates which will
mean an addition to gross income of
between S7OO, 900 900 and $500, ,OOO, 900
n wear.
A banker. when discussing the
changed situation as regards rail securi-
backs to better operation of the roads
uk q, hn 81 &c nd
that the meeting of railroad men in
Washington to discuss the subject with
Senator Cummins and representatives of
the government this week will no doubt
result in some relief. although, he said,
railroad men do not expect any early
relief is possible, but the fact that a
serious beginning Is being made to meet
the difficulty. he said, was in itself an
indication of progress.
He said he understood that owing to
freight on some of the roads was 20
great that several steel manufacturing
concerns had asked for permission to
employ their own hands to helm relieve
the freight lam which was holding nm
raw materials which they wanted to
keep their plants going.
Some financiers yere of the onin;on
direct result of the low rates for
money, but it was argued that il such