Evening star., 1934-02-11
CONTROL MOVE
FAILS TO ALARM
CAPITAL EXCHANGE
Abuses Most Condemned in
Message Declared Un.
known Here.
BUILDING WELL ABOVE
LEVEL FOR YEAR AGO
South Atlantic States Show Per
NIT Increases as High as
IS Per Cent.
BY EDWARD c. STONE.

Washington Stock Exchange are un-
afraid of the proposed sweeping Gov
eminent regulation and control of all
exchanges as urged by President
Roosevelt in his special message to
Congress.
Lack of worry or alarm among Off
cials of the Washington mart is due
to the fact that abuses most COM
planned of in the plan to be con-
eidered by Senate and House Com
mittees do not exist here under the
present method of exchange opera
tions.
There is no short selling" on the
local board; wash sales" were banned
years ago, as were matched orders"
while pools" can prosper only on
very large exchange. Spreading of
false information in order to increase
buying orders is also unknown here.
Specialists, against whom so much
bitter criticism has been aimed
operate only on the floors of the big
eest exchanges. . Officials and corpor-
alton directors who trade heavily in
their own stocks, on inside informa-
ton. also carry out these manipula-
tions only on the big trading boards
Of the country. So it is with host
of other manipulations named in the
"bill Of objections"
Nobody ever buys securities on mar
gin on the Washington Exchange.
thus another controversial point is
out of the picture here. In the past,
corners" have been as rare as hens
teeth on the exchange. No doubt they
will remain so, either with or with
out Government regulation.
12O Issues on Board.
There are about 120 listings on the
Washington Exchange. They are the
stock and bond issues of the leading
corpora tions in the city and some
from outside. Most of them are
bought and held as investments, be-
cause of their dependability, yield or
return. Every exchange has some
issues that are largely speculative and
are dealt in as such. rather than for
their investment value. That is true
here.
President c. J. Gockeler and his
associates point with pride to the eX-
change and call it a model of its size.
It already meets most OF the require
ments named in the 14,000-Word Dill
prepared for congressional attention.
Perhaps it is intended to make the
New York Exchange just like it, the
difference being only in size.
officials are ready to place the ex-
change under Federal Trade Commls-
sion control and furnish any infor-
nation requested. If Congress passes
the bill at this session, the new deal
will go into effect october l. That
Is a long way off.
In local New York Stock Exchange
Offices Yesterday, the proposed new
bill was the sole topic OF c@nTersa-
ton with the exception OF the can
ceiling Of the airmail contracts.
It is pretty generally agreed that
there are many abuses which should,
and seem likely to be corrected. But
when it comes to stopping specula-
tion. brokers here consider that as
impossible.
Building Permits Improve.
The estimated value of building
permits in 215 cities regularly report
ing to Dun g. BradStreet, Inc, Tor
the month of January aggregated
S2Ol7o.438, and compares with Sli-
744.8O5 for January, 1888, an increase
of 1877 per cent. The January total,
however, compares with S24.9l5.2IO
for December, last. This represents a
drop of 10 per cent, when normally a
seasonal decline Of about II per cent
occurs between December and jan
uary.
Comparison of the group totals with
those of January last year reveals that
FIVE showed increases, whereas only
three groups declined. The East Cen.
tral division reported rise OF lZo.o
per cent. This was due largely 10 the
lump in permits at Chicago whose
total crossed the million-douar marx
for the first time in over Two years.
The South Atlantic and West Central
oro1,ns turned in increases of about
rs ner cent. while the Middle Atlantlc
and South Central groups reported
fractional increases. The New Eng
land, Mountain and Paclhc StaVes
showed declines ranging from lilo per
cent to 21.8 per cent.
Building permits in Washington IN
January totaled s337,475 against
1892 .o8O in January year ago anu
1922 $50 in December, 1888. Baltl-
more reported permits totallng S5'u'-
900 against S50l.720 in the Same
month in the previous year ana so4Z'-
12o last December. Atlanta had the
best record in the South. S599.711,
compared with S47.785 in the IKE
1898 period and S24807 in December
of last year.
Cleaned in Financial District
Characterized by its president,
Robert E. Christie, jr.. as the most
momentous meeting in the history OF
American investment banking, the
beard of governors Of the investment
Bankers Association OF America met
in Chicago to consider the draft OF
fair practices rules which it will SUD-
NIT to the code authority as pro-
posed part of the investment banking
code.
The bankers code of fair practices
Is due to come up before Gen. Hugh
s. johnson on February Is. This is
the code which he held up for further
consideration just as it was about to
20 into effect, declaring that the rules
prepared by New York banks were
far too drastic for the public.
Sidney F. Taliaferro, trust officer
of the Riggs National Bank and T.
Stanley Holland, holding trust Off
Ger position with the American Sc
curity &, Trust Co., are planning to
attend the Midwinter trust confer
ence, which opens in New York Tues
day. Corcoran Thorn plans to attend
the annual dinner.