New-York tribune., 1922-06-10
Mariner AItmayer, Curb
Broker, Admits Pur.
chasing Stock in 3.Com.
pany Merger on Orders
UIntermyer Sees
Cut at L. S. Steel
Saws New Concern Will
Be Public Benefit if Mo-
nOpoly Is Broken Up

vor,imer Altmayer, a broker
.,-,bsr Of TIE New York Curb Ex-
,1anrs, startled the members Of the
lockwood committee, before whom
!. was appearing yesterday as
v;tnes. with the reluctant admis-
.ion that he had received orders
trom the banking house Of Kuhn,
Insb & Co. last Friday to purchase
or .be curb 10000 shares Of stock Of
+hs new North American Steel
company. as the three-company
steel merger is now known.
The testimony was regarded as
significant by committee members,
who recalled that Mortimer L.
schif. member Of the firm, had de-
elared under oath that the financing
Of The merger was still in an indef-
mite state and that he did not know
Awbst brokers' traded in that stock
Friday on the curb" on a when is
sued basis
Referring to this testimony and
that Of other witnesses Samuel Un-
termyer, counsel for the committee.
observed that he was ashamed 10
say that this transaction was GUS
tomary way Of making market for
securities
II was the high light Of an exhaustive
inquiry into the operations Of the stock
and curb exchanges by the counsel and
In connection with which numerous un-
wiling witnesses we're compelled TO
disclose the workings Of these money
and security marts. With respect to
The sgrb. Mr.. Untermyer characterized
The things permitted as "the widest
at1 most uneonscionable form Of
gintlae,' and that one was SAFER
bs;iirg On the horse races or on the
turn ci lN roulette Wheel
IA grmng up the results of The
nft1eay heard regarding 4 steel
f~fgsfs and ,is M tojs @. 4ae stock
xehinges lr. Untermysr set forth
several reforms which he thought were
re,slsary for the proper control of
possible evil combinations and sug-
.g.sied legislation for the regulation
d stock exchanges.
Chadbourne Produces Data
Before he placed these on the record,
however, IL was brought out that
Thomas L. Chadbourne, the lawyer
Promoter Of the three-company com
bine. had freed himself Of the con-
tempt charge by surrendering to coun-
Sel the data which the latter had de-
nsnded but which Mr.. Chadbourne
had declined at first TO produce. There
was some discussion between Assem-
blymAn Caulfeld, member Of the COM
nittee, and Mr.. Untermyer, on this
point, the Assemblyman regretting tina,
Mr. Chadbourne had not been called
to the stand TO purge himself Of the
charge.
Il was explained that the data had
been turned over 10 the counsel for
the htter's inspection shortly after
Thursdays session.
IN Surveying TIE ldhtH Oli
the merger. Mr.. Untermyer, while re-
framing from making recommenda-
tons. takes a somewhat favorable view
Of the matter. He was satisfied, he
said, that the capitalization of the new
company was conservative, and II, as II
has been testified. it would have the
effect Of reducing the huge diferential
now enjoyed by the United States Steel
Corporation it might be a public BEN
eft
ANY move in the steel business" I"
he said, chat tends toward destroy
Ing the monopoly now enjoyed by the
United States Steel Corporation should
be welcomed"
He was certain that the combine was
70, contrary to the Sherman antitrust
laws, but may be contrary TO the Clay
ton act, which gives the Federal Trade
Commission the power TO determine
When q merger constitutes unfair COM
petition.
legislation Recommended
Among the counsel's recommenda-
tons for possible legislation were ()
that the Federal Trade Commission
should be empowered 20 prohibit any
person or corporation engaged III IN
tersiate commerce from acquiring tne
property OF q competitor without the
spproys Of the commission.
2. Il SHOULD be made unlawful for
any Stock Exchange TO permit dealings
IN securities Of 8 pool or syndicate
rsrsaction unless the agreement unaer
which the stock IS 20 be marketed mas
been filed with the exchange for public
Inspection and notice has been given
nat L is the subject Of a syndicate
operation.
J. That % should be made uniawiul
''r any exchange 20 deal in securities
,1eiec; 20 their being issued or when
Issued" or in any securities that are
te' IN existence and represented by
f,opcrtT
W. Al;msyer testified that he lived
r& West Ninety-ffth Street and that
vss a broker member Of the New
9,il Curb Exchange.
iec have executed quite a NUMBER
lcohuhues on next pasD
- - -.~~Er, III