New-York tribune., 1922-03-17
Change Protest
Likely to Block
Blue Sky Bill
Message Sent to Senators by
President of n. Y. Stock
Board Causes DELAY i'm Ac-
lion on kailin Measure
lIntermyer Hits at Brokers
Pitcher TO Ask Recomnsittal
of Act for Hearing; Move
Would Make Death Certain
r,3,l n Sta4 Corrcqnondcut

ALBANY, March Protests regis
tered with members of the Senate by
SEYMOUR L. Cromwell, president of the
New York stock Exchange. have killed,
- all probability. the Katlin blue sky
bIn which was aimed at suppressing
Aussetshops and other forms Of stock
swindling.
Mr.. Cromwels objections to the
-sssure were embodied in kilograms
10 members Of the Senate. where the
MI was slated for passage to-day. Mr.
Cromwell said that the bill, in giving
he state supervision over brokers.
rssld hamper the Stock Exchange in
Ssiplning members who violated the
niles Of the exchange.
District Attorney Joah H. Banton, of
New York, who was one of the chief
,uonsors of the Katlin bill, commenting
on Mr.. Cromwells telegram, said:
"Mr Cromwell's criticism of the bill
is not well founded. The curb market
and the Consolidated Exchange both
urged the passage Of this bill to check
stock swindling. Ii is essential that
some one in authority, clothed with the
Movers of the state, should have the
right to examine the books of brokers
i the crimes of bucketing, wash sales,
trading against orders and others are
to be punished
Access to Books Needed
aThe people will not be fooled by tho
vre.ense snat the Attorney General can
proceed under the Martin act of last
year It cannot be done, unless there
is power on the part of some one, as
provided for in the Katlin bill, to ex-
anime the books of offending broker.
age firms"
Action on the blue sky bill was post
poned as result of the telegram from
the head of the Stock Exchange. Sona-
tor Pitcher, chairman of the Committee
on Banks, announced that he would
move to recommit the bill for q hear
ing. This. if done, would kill the bill,
as the Legislature has but one day of
life before it.
Samuel Untermyer, who as counsel
tor the Puio committee investigated big
financial institutions, said that Mr..
Cromwel's attitude is in effect IAN in
dictment OF government" He said that
"the Stock Exchange criticism against
interference with disciplining its men,
bers is based on the theory that its
sutocratic and unreviewable fats are
lfallible"
Says Change Needs Attention
els it the idea of these gentlemen"
NJ. Untermyer asked, chat the gov
trnmental function of suppressing the
'ucketshops should be transferred to
tie Stock Exchange, and that in order
% cothe the mighty citadel of virtue
wh the necessary powers the courts
sst continue to be stripped, as they
unow, of the power to correct the
lie Of that amazing power?
II our laws are incapable Of reach
g bucketing and we must pay such
Mce for turning over that govern
asntal function to the Stock Exchange
se had better turn our attention to
lie Stock Exchange itself, where there
Il plenty of reform tory work to be
done. Subject the exchange to the su-
pervsion and regulation of state au-
thorlty so as to make of it the worlds
great security market, where the in
vestlng public may safely and legiti-
mately deal. Prohibit brokers from
speculating, as il, other countries"