New-York tribune., 1920-12-26

/ uISCl pine.
Up to the present the association
has ;-,ways had a legitimate excuse for
skiing leniency of its critics. 1t has
that it was not responsible either for
the conduct of non members or for the
nature of unlisted stocks to which it
had not given its stamp Of approval.
And when one would bring tales OF
bucketing orders, of plain cheating,
and IF other innumerable malpractices
to the attention of the officials of the
Curb Association, they would always
attribute the unsavory side Of the
Curb market to the presence of undis-
ciplined non-member traders and un-
approved stocks. When the Curb goes
in there will be no smoke screen to
protect its name.
The Curb Association will be on it's
own, and its reputation will depend on
what happens on the floor of the new
favor of the public, the association
will have to demonstrate the correct
ness Of it's contention that it's members
are worthy and that all the evils
originated from the outsiders There
will be no nonmembers in the indoor
Curb, and presumably no efforts to
pass the buck. The validity of the
claim that the association was power
! less to correct abuses under the old
tion. But, after May l. the members
Of the Curb Association will have a
glorious opportunity to show how eff
fectively and how honestly they are
ready to serve spectators and in
vestors in Curb securities.
Friends Of the movement are en-
thusiastic about the possibilities, and
thus far no striking, opposition has
arisen except from the outsiders who
do not wish to be deprived Of mar
| ket. Curb brokers out of sympathy
with the associations program have
publicly announced their intention of
forming the Curb Stock and Bond
Market of New York, and will meet on
January to elect officers and draw up
set of bylaws. According to Thomas
A. Cook, chairman of special COM
mittee of dissenters who have already
obtained a charter, $50 brokers have
already joined the new organization,
which purposes to keep an outdoor
market in Broad Street after the Curb
Association goes inside. The legal
rights of the existing Curb are traced
back to Court Of Appeals decision,
which held that the Curb was d his
toric body entitled to unique privileges
and to the implied recognition which
the market received from the late
Mayor Gaynor, when he placed New
York City bonds on the Curb after
declining to meet the precise require
ment of the Stock Exchange in respect
to the engraving of certificates. And
yet the members of the Curb Associa-
ton feel that when they leave Broad
Street, the police authorities will no
longer see the justification for permit
ing brokers to gather in the middle of
the street and obstruct traffic for five
hours day.
When District Attorney Swami some
eighteen months ago investigated the
Curb after months Of scandalous trad
ing in worthless oil securities the
doors, was laid before him, and he was
asked whether he would chase the
/ Stragglers from Broad Street if the
members of the association retired ia
a building.
Will Curb Persist?
The District Attorney was reported
70 Lave replied: "This Office will do al
1t can to help you and the Mayor anc
the Police Department will cooperate
The matter of keeping the others of
the street is, Of course, a police mat
ter"
And as the change lmpends, one out
sta snding question is whether it vii
be possible to abolish the outside curb
VIII another spring into existence
when the members Of the association
cease in truth to be constituents O
What the public thinks of as curl
ard become brokers in a stock ex
change which retains the name of curb
The financial success of the indoors
curo depends in large measure OF
the attitude of the New York Stool
Exchange and its firms. Former Gov
o:nor Hughes's Committee On SnecnIa I
ton, which studied the financial mar
kets IN 1909, found that 85 per cen
or the business on the Curb originated
: from Stock Exchange firms, and tn,
: cor mlttee implied that the Stock Ex
; Grange was partly responsible for tn
unofganlzed state Of the Curb. Th,
Sto ck Exchange, however, has alwav
hesItated to assume esponsibilitv 70
l me conduct of the outside market. nj
1rough as recently as last year it ha,
unaer consideration plan for bring
supervision. ''' o"'
1 The Hughes committee, which mad
Ine only ofhclal investigation Of tn
1uro' IN It's report concluded: "Not
withstandlng the lack of proper super
VISION and control over the admissio,
4 OF securities to the privilege of quota
tlon, some OF them are meritorious an
IN thls particular the Curb performs
useful function. The existence of th
I cited abuses does not, in our judgment
r demand the abolition of the Curb m Az
Het Regulation Is, however, impera
1--WE 10 require an elaborate orpanj
g eaton similar to that existing in th
G exchanges would result in the forma
p ton OF another curb free from suc
restraint"
A New Code OF Rules
! The Curb Association plans an elab
=. crate set Of rules for trading when
I goes indoors, which will BRING il n
e 70 par with the more mature ex
changes At present the associatio
uses New York Stock Exchange rule
wherever its own do not apply to
= gwen situation. But when It POE
n under roof it hopes TO have sui
4 Hciently comprehensive rules of II
- own 20 cover every situation, and tn
e association asserts that its rules fo
}. Hsting securities carry every require
ment which the Stock Exchange exact
and an additional one for 200
, measure.
Aside from the evils resulting from
2 unlisted stocks and undisciplined non
members, other criticisms over th
Curb aris" from thc c luct oe snn
c.a al'sts, who are frequently accused O
HiVng stocks to buyers or taking then
iurA