New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-06-10
Steel
Bought for
Kulln.LOeb

~ orders in this North American Steel
Company stock?' asked Mr.. Inter
myer. Have you any idea OF the
amount Of your dealings =
81 should say about 10000 or 10000
shares-something like that" replied
/ the witness.
"Since the second Of June?"
Eyes, sir" answered Altmayer.
/ He added that he began trading In
| the stock within fifteen minutes after
/ trading was permitted in the stock OF
I I p. m. Friday last. He said he had
orders to deal in IL right away, just
before trading opened. Tho question
/ ing then proceeded as follows:
Q-Who gave you the orders7 A.
Mr.. Untermyer prefer not to answer
that without asking consent Of my
clients.
Q.-You will have TO tell US who gave
you orders. Al have received some
orders from Kuhn, Loeb & Co. and
other houses also.
Q.-Now, what orcdrs on that after
noon, just befoe the stock opened az
| o'clocks what orders did you get
from Kuhn, Loco & Co.? Al had
orders TO buy stock at 90 think 5000
shares.
Q.-How much did you buy that day
on those orders? About 10000
shares.
Q-You have not been able to de-
liver any stock, have you? A.-No, sir.
Brokers Eager for the Stock
Altmayer here described the excite
ment on the curb floor during the
trading in the stock and how brokers
lad assembled az the trading post
shortly before IL was announced that
the stock was 20 be sold on a when
issued" basis on the curb. He said
nobody knew anything about the stock.
you know how a market is made in
a new stock ~ asked Mr.. Untermyer..
you know il is made by giving out
buying orders 90 one set OF brokers
and selling orders 20 another. That Is
the way YOU start market in new
socurity!" "As q rule" said the wit
ness.
"And when the stock IS not issued
yet. the same rule is Observed" eyes,
sir
$50 that you understand quite well
what this excitement meant, that this
large number Of brokers az the post on
both sides, went on the selling and
went on the buying side, did you not ?"
asked the counsel. 81 did" smilingly
answered Altmayer.
"What did you assume Kuhn, Loeb
I & Co. were doing?" 81 didn't assume
anything. | am an agent and do what
I'm told"
you refrained from thinking'"
ayes, sir"
"Have you done any thinking SINGER
mo. sir"
Al,mayer, under persistent question
ing, told how markets arc made by
orders being given 20 buy and orders
10 sell sometimes from the same
source" That keeps up an appearance
Of activity and the man who has the
stock manages TO sell some IN be-
tween.
O.-You don't think that sort Of deal
ing is legitimate or adds 70 the dignity
or strength OF the exchange, do you?
Don't you think tie exchange would be
more likely 10 become a great security
market II that sort Of thing were elimi-
mated? A.-That is not always the
purpose The stock might be sold
Don't you think If this class OF
dealing to which you have referred
was eliminated and prohibited that
/ both the Stock Exchange and the Curb
Exchange would be more powerful and
more effective as security markets =?
Al have never said those markets
were made 10 sell stock. Sometimes
+ those markets are maintained 10 sup
port stock.
Graded On Own Account
Emil Mosbacher, another curb ex-
change broker, of G. Exchange Place.
also had commissions % buy and sell
tAc new stoc1, but insisted that mo
body was behind him. and that he did
most Of the trading on his own nc
count. Tie said he applied for permits
+ sion 10 trade in this stock on the cur-
in a letter 10 the secretary OF the ex-
change on April 81, and another letter
Of June 2. lie mentioned some figures
as TO stock issues in these, which he
says he learned from the newspapers,
but which Mr.. Untermyer pointed out
had not yet been known az the time.
lie said he knew nothing about the
stock or the assets OF the company.
but that he nevertheless qualified as
a specialist in It's sale
rs that what Is defined az a special
ist on the curb, q man who knows
nothing about the stock in which Ae
+ spcciaiizes in" inquired the counsel.
"Tho less he knows The better?" "Cor-
f rect snapped Nosbacher.
Mosbacher said he both sold and
bought the stock. dealing in 5000
shares the first day, which resulted in
house Of Newborg and with Enrich e.
Company, through whom he cleared.
Admits Losing Memory
He then developed q faulty mem
/ DRY and could hardly recall anything.
"You have a pretty good memory p
f protested the counsel.
mot when / get up here. lose
/ II when I get here" cheerfully OBJ
served the witness.
In the examination Of Alfred B..
: Sturges, the secretary Of the Curb Ex-
/ change, Mr. Untcrmyer asked him II
/ trading IN the stock was permitted and
The public invited 20 buy without any
f statement whatever Of the affairs OF
the company. he replied that was so.
Don't you think that is the widest
and most uncomfortable form Of
gamblnR| Not necessarily"
he admitted that be heard Mr..
Schif testify that the whole plan Il
subject 90 any kind Of change. that
the bankers we're not committed 70
anything, that the company might not
be formed, and that il might be formed
with entirely different kind OF securi.
ties. lie said the whole thing de-
pended on who the banker was.
Aren't you safer In betting on the
horse races or on the turn Of the rou-
lette wheel than you are in this sort OF
game 2 askcd the attorney.
81 would rather play this way" re.
piled Sturges.
In the cour7e o. bis summary Mr..
Intermyer said that the testimony on
NE mergers had been about completed.
although future DEVELOPMENTS might
lcn.-i.n IL -. L.. ). - !,