The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-24
EXCHANGE TO WAR
ON LYING RUMORS
Remick Acts Because of False
Reports Rejecting on
Firms and Persons.
OLD STOCK JOBBING TRICK
Public Is Asked to Help in
Stamping Out Practice
Banned by Law.

The New York Stock Exchange Is
opposed to the circulation OF disturbing
rumors regarding the stability Of BUSH
ness houses or individuals and is deter
mined to do all in its power 70 put an
end to the practice. William II. Remick,
president OF the exchange, in an inter-
view yesterday called attention not only
to the exchanges ruling on the matter
but to the State law relating 70 the
spreading OF false reports and urged
the cooperation OF the public in stamping
out such methods OF stock market ma
/. nipulation.
'Tt has come to the attention of the
governors of the New York Stock Ex-
change" Mr.. Remick declared, that
various rumors without foundation In
fact have been circulated during the
recent depression rejecting on the sta
bility Of business houses and individuals.
Although in such situation as we are
passing through this is nothing new,
the Stock Exchange sent n notice to It's
members calling their attention TO a
section In the constitution of the ex-
| change which provides:
That the circulation in any manner
| OF rumors OF \ sensational character
by members OF the exchange or their
firms will be deemed an act detri-
mental to the interest and welfare
! of the exchange. That all members
OF the exchange shall report TO the
secretary Of the exchange any in
formation which comes to their notice
as to the circulation of such rumors
and all houses having correspondents
with whom they have private wire
connections shall obtain and report
| to the secretary OF the exchange any
informa ton as to such rumor5 that
comes to the attention OF their corre-
spondents.
| 1.-The exchange is very much alive to
| the dangers Of the circulation Of rumors
of false information tending 70 influence
security prices in either direction, but 1t
must be borne In mind that Il has no
control over the minds and speech Of
the citizens of the country who are not
members of the exchange. There is,
however. an excellent statute In the laws
of the state Of New York. which reads
as follows:
ANY person who. with intent to de-
ceive. makes, Issues or publishes, or
causes to be made. Issued or publish
cd, any statement or advertisement as
20 the value of or as to facts affect
ing the value OF stocks. bonds or
other evidence of debt of n corpora
! ton. company or association, or as to
the financial condition or facts affect
ing the financial condition Of any corr
poration. company or association.
which has issued, is issuing or is
about to Issue stocks. bonds or other
evidence of debt, and who Knows or
has reasonable ground to believe that
any material representation, predic-
ton or promise made in such state
ment or Advertisement Is false. is
guilty OF a felony. punishable by a
fine of not more than $4,000 or by
Imprisonment for not more than three
years. or by both.
80 called information. which has
proved to be misinformation. has been
circulated recently. seemingly for ute
rior purposes The Stock Exchange is
decidedly against such reprehensible
methods and bespealSs the aid of all
right-minded people in putting an end
to It."