Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-05-15
EXCHANGE IN
NEED OF HELP
FROM PUBLIC
Stock Market Situation Set
Forth Frankly by Seymour
Cromwell.
REVOLUTION PROPOSED
Special to Indiana Daily Times
and Philadelphia Public Ledger.

Special to INDIANA Daliy Ilme0
and Philadelphia Public Ledger.
BY RICHARD sPILLANE.
PHILADELPHIA, May 15.-Wall
street pretends to question the accuracy
of the newspaper reports OF what Sey-
mour Cromwell, president of the New
York Stock Exchange, said at the ban
quet in his honor, given by the Philadel-
phia Stock Exchange.
What Mr.. Cromwell said was so plain
as not to be misunderstood or miscon-
strued. He was emphatic In his state
ments. Most Of his speech was read from
manuscript. Occasionally he laid aside
his papers and amplified a point.
WOULD REDUCE
MEMBERSHIP.
As a result Of the rigid inquiry insti-
tuted by the exchange, he explained, the
membership would be reduced 100 or
more. This would not be due to ques-
tionahle practices or dishonesty, he made
clear, but to the lack of qualification.
There were cases, he said OF houses estab-
lished long ago, the Stock Exchange
membership Of which had been passed
down through two or three generations
and these firms had not grown stronger
with the years but rather the contrary.
Today they did not have adequate capt.
naire of the exchange some OF them said
they could not continue under the new
and stringent regulations. Though mer-
gers with other concerns some Of them
would find a way out of their difficulty
In effect, Mr.. Cromwell said these houses
We're suffering from dry-rot
Mr.. Cromwell may not be 30 dip1o-
matte as some Of his predecessors. but he
certainly is more militant. Apparently
he wants to win the confidence Of that
considerable part Of the public which
has been suspicious of, II not violently
antagonistic to, the Stock Exchange at
all times. 1T would not be surprising
IL he did what has been urged for some
years by a minority element In the ex-
change; tell the story Of the exchange
and the great part 1t pays in the affairs
Of the Nation to the people.
1t is great story and an Accordingly
interesting one IL presented properly.
II some of the stiff -necked old fossils,
long the ruling powers, had not defed
public opinion the exchange never would
have been subjected to SO much criticism
and attack as 1t has known. They held
to the view that II was none Of the
peoples business what the exchange did.
They would explain nothing. Because
tney We're a private iihS
club, and never had peen incorporated
they arrogated to themselves the right
to tell the people It was none OF their
business how the exchange conducted Its
affairs.
Now there Is reason. some persons
consider it very good reason. why
the exchange has refused to incorporate
although its transactions transcend In
yal ~ ~
in America. As private organization
the exchange can discipline member
and exercise a power over members 1t
could not employ il 1t were an incorpo
rated body. II 1t were incorporated II
would be subject to no end OF examina
ton. probably be sued by disgruntled
members or by patrons Of exchange
members.
Unincorporated 1t Is free and untram
meled A member suspended or expelled
has no appeal The exchange Is the
Judge and jury of Its own acts except
in the court Of public opinion. and for
most of Its long life the exchange has
scoffed at this couor or at least seemed
to do so.
Now it's different A vigorous element
in the membership wants public opinion
to be with the exchange 1t has been
agitating Internationally for some years
to get the Governors Ito loosen up" 1t
wants to be wholly frank and open with
the people: figuratively, to let them see
the exchange and all its works as they
are. II wants to shed the fullest light
of publicity On the exchange and 1t be
lieyes. when the people know the ex-
change as it really is they viii be proud
OF 1t.
What 1t would be worth to the Ex-
change to have the fullest good will Of
the American people no one can estimate
no more tina many one can estimate the
value OF good will TO a railroad or a
public utility corporation. 1t is a thing
intangible yet OF very great power.
Would 1t add per cent or 10 per cent
to the value OF stock exchange mem-
bership? The exchange has about loo
members. An exchange seat nowadays Is
rated at nearly 100000.
1t would seem TO be good business <or
the exchange to go to the people-through
the agency of the only effective medium
1T can employ-advertising. 1t could
afford to invest 100000 or $1,000, coo
In spreading the story Of what 1t really
is and explaining many OF the things that
make of 1t great value to the Nation.
There is no doubt Of the result.
Mr.. Cromwell has made a stout start.
1t would be folly now not to take adj
vantage of the situation.-Copyright, 1922,
by Public Ledger Company.