Norwich Bulletin Newspaper, December 13, 1912, Page 2

METHODS OF THE STOCK EXCHANGE Creditors Inside Exchange and Not Customers Receive Pro- ceeds of Sale of Bankrupt Brokers’ Seats—How Brokers Work to Create an “Active Market”—Membership of Ex- change No Larger Now. Than Forty-Three Years Ago. Washingten, Dec. 12.—The highways 4rd 'byways of finance as traversed by orerators on the New York stock ex- change were mapped out before the house banking and currency commit- tee today in its money trust inquiry. Frank K. Sturgis of the brokerage firm of Strong, Sturgls & company, former president and a member of the board of governors of the stock exchange, told the committee about the ways of “the street.” Refused to Answer Question. The examination of Mr. Sturgis by Samuel Untermyer, counsel for the committee, bristled with technical dis- ussions and involved digressions. Mr. gtu(gis at times insisted on lengthy digressions in answering questions and once flatly declined to answer. His counsel, John G. Milburn, interfered to preserve the calm dignity of the occa- sion. The testimony of Mr. Sturgis brought out the following points: Stock Exchange Membership. The membership of the stock ex= change has not been increased since 1869, when it was fixed at 1,100. Since then the business done and the securi- ties listed on the exchange have in- creased about 50 times over. Mvr. Sturgis declared that an incredse in membership was unnecessary, for the present membership was well a_hle to handle the business of the public. Creditors in Exchange Only Protected. In a dozen recent failures, Mr, Stur- gls admitted, stock exchange houses had carried with them stock owned in part by their customers, but hy- potheticated by the brokers for more than the real ownership of the broker. In such cases the proceeds of the sale of the bankrupt broker’s seat on the exchange goes, it was explained, not to his customers, but to his creditors in- slde the exchange, Mr. Sturgis thought this was fair <-ud just, as it was a regulation subsscibed to by the mem- bers in the exchange and recognized by the public. Creating an Active Market. “Is it legitimate for a member of the exchange to give an order to sell a certain amount of stock to one broker and an order to buy the safme amount of the same stock to another broker?” asked Mr. Untermyer. “So long as there is no collusion and the commissions are paid, it is not illegitimate,” said Sturgis. “The important point is that the broker’s commission be paid?”’ asked the lawyer. “Yes, that is it.” “You know that the object of that sort of a transaction is to raise or depress the price of the stock?” “The object is to create an active market.” “A market that appears to be active, you mean?” “Yes.” A Moral Question, Stock Exchange Answer, Mr, Untermyer sought in vain to get from Mr. Sturgis his views of the po- sition of the trading public in such a transaction with the stock at a ficti- tious figure and finally objected to the form of the witness’ answer. “You are asking me a moral question and I'm answering a stock exchange question,” said Mr. Sturgis with a smile, and the committee laughed. The witness insisted that these transac- tions were beyond the power of the exchange for discipline so long as the commissions were paid. CONGRESSMAN BOWMAN UNSEATED BY THE HOUSE. Resolution Adopted Declaring He Was Elected by Corrupt Practices. Representative ‘Washington, De: iy the Eleventh Charles C. Bowm: Pennsylvania di the house tod 118, of a reso the passage, 163 to n declaring that cor- rupt practi had been used in his election in 1910. At the same time the ho refused, 181 to 88, to seat George R. McLean, his democratic opponent. It was charged on the floor that he had been gullty of the same practices as were alleged against Bowman. The seat from the Eleventh district will be vacant until March 4, when it will be filled by John J. Casey, a democrat, elected in November. The fight over the case on the floor was enlivened by a bitter passage be- tween Representatives A. M. Palmer and J. R, Farr, both of Pennsylvania. Mr. Palmer had referred to the charge that the influence of the Delaware, Lackawanna and Western railroad had been used for Bowman. “The gentleman must not forget the efforts which that corporation through its officials made for him at his solici- tation,” observed Mr. Farr, as he men- tioned that Mr. Palmer was a local attorney for the railroad in Pennsyl- Palmer replied that he was a counsel for the Lackawanna, but red that any statement that he r solicited the aid of any cor- on for himself or anyone else s a “wilful, deliberate and malicious hcod.” He demanded that Farr er apologize or prove his charge to nouse. e incident ended by Representa- tive Heflin making a point of order and “Uncle Joe” Cannon counseling Representative Farr to “sit down.” PASSED SENTENCE ON HER HUSBAND. New York Magistrate Gave Maltreated Wife the Opportunity. New York, Dec. 12—“For the mo- ment you are the magistrate and I am & spectator,” said Police Magistrate Appleton today to Mrs, Isabel Archer, who had brought her husband into court and told a_story of cruelty and abandonment. “Yo go ahead and do Just what you like to this man. What do you think should be the sentence?” Sitting in judgment upon her hus- band, the woman sentenced him to one year of probation and to pay her $6 a week for the support of their four chil- The sponging industry of Cuba is dwindling because fishermen gather in the little sponges before their time, THE FENTON-CHARNLEY BUILDING CO0., Inc. GENERAL CONTRACTORS NORWICH, CONN. XMAS GIFTS A large line of Suit Cases, Hand Bags, Trunks, Novel- ties in leather goods suitable for anyone. The Shetucket Harnsss Co., Opposite Chelsea Savings Baak. To Be Given Away from Dec. 3rd to Jan. 6th, One 20 Dollar Suit of Clothes at the PALACE POOL and BILLIARD PARLORS A coupon with each game. 5 Pool Talbles and One Billiard WSS ELLA M. POTTER Instructor of Piano and Harmony com 6, Alice Bldg. Tel. 968 A PIANO Out of Tune Iso’t Worth a Picayune. Of the Tuners, Take Your Pick, d. H. GEORGE Will Tune It Slick GOVERNOR COMMUTES MURDERER’'S SENTENCE. Life Imprisonment for Convict Due to Be Hanged Today. Salem, Ore., Dec: 12.—Governor West commuted to life imprisonment today the sentence of John M. Taylor, a convict murderer, who was one of five men condemned to be hanged here to- morrow. The other four probably will be executed. Governor West had pre- viously announced he would not grant further stays in these cases, an anti- capital punishment measure having been defeated at the recent election, but much pressure was brought to bear on him, it being argued that the newly enfranchised women voters should be given the opportunity to express them-. selves. The governor explained his position by saying that to permit the execu- tions would hasten the abolishment of capital punishment. “I will abide by the wishes of.the Deople as expressed at the recent elec- tion,” saild Governor West. MOST VALUABLE COTTON CROP EVER PRODUCED. In Quantity Crop Will Be Second Only to the Record Crop. ‘Washington, Dec. 12—The country’s cotton crop this year will amount to 6,612,335,000 pounds of lint, exclusive of linters, the department of agricul- ture estimated today in its annual re- port. This is equivalent to 13,820,000 bales of 500 pounds, gross weight, and makes the crop this year, in point of quantity, second only to the great rec- ord crop, of 15,692,701 bales, -exclusive of linters, grown last year. It is prob- able this year's crop may rank as the most valuable ever produced. The quantity of linter cotton last year amounted to 278,790,000 pounds. With an average price of 12 1-2 cents a pound, this quantity of cotton would be worth about $855,920,000. MURDERED SWEEHEART IN DEPTHS OF A MINE. Jesse Dillman Wounds Himself, But Later Surrenders. Alouse, Wash,, Dec. 12—Luring his sweetheart, Miss Jennie Liner, 18 years old, into the depths of a mine near Harvard, Idaho, Jesse Dillman shot and killed her and fatally wounded himself late last-night, according to messages which reached here today. Men entered the mine to investigate the cause of the two shots they had heard, but Dillman opened fire on them and drove them out. Dillman crawled to the mouth of the tunnel today and surrendered, allow- ing the miners to brineg Miss Liner's body to the surface. WOMAN SUES FOR $500 FOR CARE OF A DOG. Estate of Elizabeth Stuart Phelps Ward, the Author, the Defendant. Boston, Dec. 12—The care of “Fee,” a pet dog formerly owned by the late Mrs, Hlizabeth Btuart Phelps Ward, the author, i1s the basis of a suit filed in the superior court at Salem today. Mrs, Adeline Hawkes of Gloucester in- stituted proceedings against the execu- tors of Mrs. Ward's estate to recover $600 which ghe claims to be entitled to because of expense largely incurred in feeding “Fee,” The plaintiff alleged that she has cargd for the dog for the past 85 weeks at Mrs, Ward’s request, THE DAY IN CONGRESS, Bifl to Limit Presidents to Two Terms of Four Years Each, ‘Washington, Dec. 13—~The day in eongress: Senate— Senator Swanson introduced a bill to appoint committee to attend unveil. ing of Jefferson Memorial in St. Louis next year. House— Former Governor Herrick of Ohio urged before banking and currency committee the establishment of a sys- tem of rural credits. Representative Levy introduced a bill for currency system reform. After stormy debate resolution de- claring vacant the seat of Representa. tive C. C. Bowman, Eleventh Pennsyl- vania district, was adopted, 153 to 118, and a resolution to seat G. R. Mec- Lean, opponent, rejected, 181 to. 88. Representative Bartholdt introduced a bill to limit presidents of the United States to two terms of four years each, Consideration of the Indian bureau appropriation bill began. Reformed Currency Bill. Washington, Dec. 12.—A reformed currency system was proposed in a bill today by Representative Levy of New ork. It would allow banks to issue circulating notes against assets to the extent of one-half of, their capital by requiring that 50 per cent. of the issue be maintained in gold coin as legal reserve. > Makes Record in Masonry. Seranton, Pa., Dec. 12—What is sald to b a world record for c en- cumbency was established here tonight when E, P. Kingsbury was installed ag treasurer of Union lodge for the 50th time. Presid aft sent a letter of ’ The best of all “Breakfast Foods” is BREAD Bread is higher in nutritive material than any of the so-called “breakfast foods” and it is much cheaper. Besides—bread may be served in just as many tempting ways. Nothing is better or easier to digest than milk and bread — or bread toasted to a golden brown and spread with butter —or bread fried in egg batter. John Dough— raised en Fleischmann’s Yeast ight 1913 by oo FTAtn Comoany WAGE INCREASE WILL REACH $15,000,000. Firemen Skeptical -f Claim of the Eastern Railroads. New York, Dec. 12.—Wide differences in estimates on the cost to eastern roads of the increases asked for by the Brotherhood of Locomotive Firemen and Enginemen will necessitate fur- ther conferemces and perhaps a con- siderable halt in negotiations while railroad statisticians prepare detailed figures, it developed tomight. A pro- longed session of the conferees on the wage question, headed by Elisha.Lee of the Pennsylvania road for the man- agers and J. C. Carter, president of the brotherhood, for the employes, ad- Jjourned for further sessions tomorrow or Saturday with little apparent prog- ress made in bringing the negotiations to ‘a head. President Carter 2nd his associates first presented demands which the rail- roads declared called for incr yearly expenditures of $20,000,000 Mod- ified demands were then presented by the hrotherhood representatives, who estimated that no more than a $4,000,. 000 annual additional outlay the roads would be necessitated. Tonight, however, the managers, who fifty eastern ru%‘ &m‘mm!:: . In fact, there’s noth- ing that can take the place of bread at any meal—and there are many things that bread can well take the place of. More of it and less of other things will increase the family’s health and decrease living expense. Of course, vou sh ould be care- ful toget the bestbread—bread that is light, fine-grained, thor- oughly digestible — bread raised with Fleischmann’s Yeast. Ask your baker: “Do You FLEISCHMANN’S Use YEAST?” ltor an increase of $15,000,000 yearly in | LAST PRESIDENTIAL : the payrolls. Precident Carter made no comment on the assertion of the managers, but asked that the statisticlans of the rail- roads present an {témized statement showing just how the grand total of $15,000,000 would be reached. The sta- tisticians, it was stated, will prepare these figures. The managers declared tonight the increases asked by the brotherhood amount to 56 per cent, The first schedule submitted, they estimat- ed, called for increases of 78 per cent. A $20,000 Fire in Busiress District. Brown City, Mich., Dec, 12.—Fire sweeping through the heart of Brown City’s busines district today threat- ened the destruction of the town for several hours and for a time cut off communication with neighboring cities. Five business buildings were consumed and the loss is estimated at $20,000. Brick structires in the path of the flames aided the firemen in preventing a general spread. Thompsonville. — Rev. Thomas J. Preston, pastor of St. Patrick’s chureh, here, who has been seriousty Il at his home in New Haven, left Thursday for a trip south. His first stop will be at Norfolk, Va.,, where a stay of two or three weeks will be made, and later a trip to Cuba and Porto Rico will be DINNER TO CABINET. e and the Cor- Present. Mr. and Mrs, Carne nelius Vanderb ‘Washington, Dsc. 12—The last for- mal presidential dinner of the Taft ad- ministration to the cabinet was en at the White House tonight. Invited to dine with the president and Mre. Taft in addition to the cabinet officers and their ladles were former Vice President and Mrs., Charles W. Fair- banks, & number of senators and rep- resentatives, the gecretary to the presi- dent and Mrs. Hilles, Mr. and Mrs. An- drew Carnegle, Mr. and Mrs. William Nelson Cromwell, Mr. and Mrs: Cor- neliug Vanderbilt, Mr. and Mrs. Hen- ry W. Taft, Mr. and Mrs. Adolph Lewisohn and Otto T. Bannard of New | York. HAWTHORNE'S IMPOSING LIST OF REFERENCES. Bryan, Hearst, Reid and ulitzer Mentioned. New York, Dec. 12.—When postoffice inspectors made their first inquiries in 1309 into the operations of the l‘Cdm;. mining coi es promot y Hawthorne, former Mayor Jo- Roosavaelt, P | stah Quincy of Boston and _others | Hawthorne referred the postoffice de- | partment to several world-prominent | men for testimonials as to hls chagae- | ter and reputetjon. This came out in 1a lett 3 y Hawthorne to tha | postoffic itles and read bY As¢ | i t United States District Attorney {3, Door at rial of the promoters today on a charge of using the malis for fraudnl [ In thie court, Haw motion literature of the mining . prises was prepared by himself, pyb- Ject to approval of the directors, “If vou wish to know anything fifr- ther about my chatacter or reputa- tion,” the Hawthorne letter read, “I re- fer you'in Theodore Roosevelt, Willlar | J. Bryan, Joseph H. Choate, Whitelaw | Reid,” Arthur Brisbane, Willlam Réh- dolph Hearst, Josegh Pulitzer or Wil- ltam D. Howells. e e e Eight Hour Day for Women, ‘Washington, Dec. 12.—~A bfll pr ing for an elght hour work s, six day week for women factories in the introduced