The New York herald., 1922-02-28
UNTERMYER WANTS
INQUIRY IN WALLST.
FINDS Na nOsis of Stock Evils
Ncce y Before Legis-
lative Remedy.
EXCHANGE is .DESP0TIC'
BantOn Warned Not to Let
Cry Of Waning Confidence
Mislead Him.
EXCHANGE is 'DEsPOTIC'

Special Dispatch TO THE New York HERALD.
PALM BEACH, Feb. 27.-The attention
of Samuel Untermyer was called to-day
TO a statement by District Attorney
Banton OF New York recommending
legislation against bucket shop transac-
tions In view of his investigation for
Congress in 1918 on this subject as part
OF the money trust investigation, Mr..
Untermyer said:
ANY attempt to legislate In advance
Of thorough understanding of the
facts is likely to do more harm than
good. All stock exchanges and boards
Of trade should be regulated by law and
their affairs periodically examined. All
members of such exchanges should be
licensed. 1t should be sufficient ground
for revoking the license Of stock
broker if he does any margin business
in stocks on his own account. In Eng
land stock broker is not allowed TO
speculate on his own account and he
ought not be permitted to do so here.
Unless there is an investigation pre-
ceding legislation the influence of the
Stock Exchange, which has been suifi-
GENTLY powerful in the past to keep 1t
immune against any kind of regulation
or control for the protection of inves-
tors, will render the legislation in
nocuous and worthless. One must
diagnose the seat Of the disease before
it can be treated. and that Is the
province of an investigation. 1t pre-
vents lot of fool legislation.
why for instance should the Stock
Exchange. through its control of the
ticker, be the absolute and despotic ruler
of the entire stock business of the United
States. as 1t is to-day? 1t. and it alone,
can determine who shall get the quo
tations over the ticker. The exchange
has in turn an arrangement with the
Western Union the result of which is
that no one can have this essential in
Simultaneous service, from whom the ex.
change chooses. however wrongfuly. TO
withhold it, and without it no man can
do q legitimate Stock Exchange busi-
ness.
IL do not mean to suggest that the
exchange as now constituted and man.
aged is abusing this vast incredibl.
power. That is quite beside the ques
ton. What 1 am asking is how it comes
that small body Of men Is permitted tc
possess such power, which Is made pos
sible only through the use of the inter
state agencies OF the telegraph and tele
phone in carrying quotations. What
conceivable excuse is there for not sub
jecting that power to governmental reg
ulation and court review to proven
abuse and see that justice Is done?
"I hope Mr.. Banton will not allow
himself to be detected by this familiar
cry that confidence is being crippled oil
business is being hurt by the effort e
punish wrongdoers. Every time any
body tries to reform any abuse. however
intolerable, he is met with that cry o.
protest.
"This loose talk about legislation ]:
harmful. One must know the intricacie:
of the game as it is played before at
tempting to extract the jolkers' tha
render the game dishonest and grave
peril to the public. as it is to-day. II
has too many ram;fcations and Is toe
complicated for amateurish experiment.