New-York tribune., 1922-06-14
Board Of Governors Acts
After Untermycr and
BaniOn Had Agreed on
Grand Jury Quiz To-day
Transactions Made
In Stock Cancelled
$4,000 Shares Had Been
Transferred at S47 TO
$50: Prosecution Like
" To BE Abandoned

N 10 he Abandoned
Uaitr threat Of criminal prosccu-
.t- and with the legal machinery
srusry Sc. in motion against them,
q, board Of governors Of the New
York Curb Market last night surren-
dared 10 the demands Of Samuel I'm
,.-mver. counsel 10 the Lockwood
committee, that the exchange pro-
mi. dealings in the stock Of the new
North American Steel Company, as
Il. proposed three-company steel
rergCr is known.
Twas known that sir. Untermyer
i,l been c'o.efed with District At
,o-ney Bsr,or some time Monday
and Yesterday afternoon and that
r,,cecdings were under way for
rlasing before the grand jury this
morning evidence upon which indict-
rsnts Of the governors, listing COM
n,tee and other officials Of the
Curb Exchange We're TO be asked in
connection with the recent dealings
n North American Steel on "wher
issued basis.
Fifty subpoeras had been issued and
ifyed uDon brokers in the Wall StFc;t
district. many O. whom had been exam
ned in connection with the merger sad
c.sraiions Of the curb market before
iis Lockwood committee last week.
irong these ve-c said 90 be Edward
J Mccormick. president Of the Curb
Ei,iarre and Alfred y. Sturges. sec
ulv. who was ono Of the committee
So ~incsscs last week u was gon-
Ey Known that Mr. Jntermyer re.
rf;a tie transactions in the new
fu under The circumstances testified
" vi'-cre.s as coming under tae
hrs against ccnspiracies injurious 90
''itf and coDmcrce as vo'i "a under
't'u'ss f-rin-i nfrr '.nl.il,"ns of go
r'grso. % ua. nctci that if tho
tfTe-gfi,n should be gone through
iaf 'his would be the first instance Of
sa'l "a proceeding against any cx-
fiarge.
Market Acts Hastily
IN the face OF this attitude and ac-
q vi -
'edly called 81 special meeting Of Inc
'ard Of governors late yesterday at
moon and adopted resolution with
rawing the privilege 70 deal on the
urb N tho securities OF the North
merican Steel Company, and cancel
ng and annulline all past transactions
D tne stock with certain qualifications.
The statement issued BY Mr.. Sturges
: the close Of the meeting read:
AT a special meeting Of the board
2 governors. held June -. 1922, the
Glowing resolution was unanimously
dopted'
Resolved. That the privilege 10 deal
y tire securities Of the North Ameri-
an Steel Company that was granted
BIZ the listing committee on June is
hereby withdrawn 40 further deal
.nvs in the stock when issued. or
otherwise. will be permitted until after
the corporation has been duly organ
!ied nor until the amount and terms
q rs capitalization and al other de-
tails have been settled and o complete
thereof has been filed with
lnl approved by the listing committee.
'All past dealings IN the stock will
ts cancelled and annulled. except where
tiier the dpc organization Of the cor
poration and tho issuance q IT'S stoch
he transactions heretofore made are
confirmed and approved in writing by
no parties thereto
i is estimated that approximately
$500 shares az the stock have changed p
hands rcc trading in tao North AmoTi- .
tsr Steel .ocuritios opened or the 7
earb on ]1le at prices varying from
VI 10 $50 q share.
Banton Orders Inquiry
District Attorney Banton admitted .
: bad been IN conference with Mr.. .
,-,rmyor on the subject and said that, !
'amgc. o. complaint had been (.
me that there was o violation of the I
hs and Nr' Untermver he'd laid the (
s,.isr before him with 2 request for t
N sid. ha bad decided 10 present me /
i''if 70 the Grand jury this morning I
'hout waiting for "a report from inc I
a}pa.s blnaI a. 20 whether or rot F..
H''la'.on had taken place. The MY /
s.'l1ras had been issued b. the Dis /
iti Attorney Office and the witnesses
'A.sd we're o. be- presented 20 the grand
lc'n1rYsl or r'ri pas)