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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (Dec. 13, 1912)
The Omaha Daily Bee
OUR MAGAZINE PAGE
will interest every woman who
likes good hcart-to-hcart talks
with other yinpathetlo women
VDL. XLTI-.NO. l.-3.
0MA1LA, FRIDAY MOKNING, OKCKMBER K
SINOUS (OPY TWO
f??Sk . . . .
TACTICS OF AUSTRIA
IN FRENCH CAPITAL
Continued Mobilization of Army on
Eve of Peace Negotiations Not
Understood in Paris.
BUSINESS IS MUCH DISTURBED
Heavy Expenditure! Take Money
Out of Usual Channels.
GREECE STANDS WITH ALLIES
Minister Says League Will Present
United Front to Turkey.
SERVIAN MINISTER NOT CALLED
Ittiuior (lint SrrvU l!aa Ilroken
Diplomatic Ilnltjtlone with
Austria In Officially
PARIS, Dec. 12. Tho continued Aus
trian mobilization which, accompanied tiy
heavy expenditure of money In that
country, has resulted In the disturbance
at commerco and Industry and is causing
considerable uneasiness here.
.Austria's taction on tho, eve of the
Halkan peace conference and the meet
inn of the European ambassadors in
ljondon are not undorstood, although as
surances have been receive In Paris that
AlletHn Im hnnt liunn rteOCOw If What 1
called honorable peace be possible.
Rumania's suggestion that its" repre
sentative participate In the ambassa
dorial conference has not been voiced by
either Franco or Oreat Britain, as It Is
desired to limit the discussion to the six
Premier Venizelos of Greece, while pass
lug through Paris on his way to London,
declared In the course of an Interview
that Greece was certain to negotiate side
by sldo with Its allies at the peace con
ference. He admitted tbat a number of
problems existed between tho allies"them
f elves, but declared that nit of them rec
ognized tho necessity of maintaining the
Halkan confederation strong and Indis
Servian Minister Not llecnllril.
13NDON, Dec. 12. Reports from
Vienna as to the sudden recall of the
Servian minister there are unfounded. M.
.lovanovltch wua appointed to the Ser
vlan legation there a month ago in place
of M. Slmltch, who formerly held the
post. M. Slmltch was received by the
emperor In farewell audience today.
Austria-Hungary, it Is pointed out.
welcomes tho meeting of the diplomats,
an It considers It will keep the great
power. In Clowe touch and save time
ly almpHfyirR he discussions.
As, far as Austria Is "concerned; It lr
Hdded, there Is nothing: to give rise to
The 'Servian govei rnncnt -has expressed
to the Austrian mlnlater at Belgrade,
Serva's readiness to give Austria-Hungary
full satltifactlon In regard to the
consular incident at Prlsrend, according
to a special dispatch from Vienna.
WAR ON ALIEN BUGS
KANSAS CITY. Dec. 12. War on alien
bugs, which immigrate to this country in
the folds of imported nursery stock, was
continued at tho final session today of
tho Western Association of Nurserymen.
How to obtain the enforcement of fed
cral Inspection laws so as to avaid "red
tape" and hasten a process which at
picfccnt delays imported nursery stock to
the pronounced loss of the Importer was
the prnclpal topic discussed.
C. U Watrous of Des Moines addressed
the delegates on "Dugs, New and Old."
U. J. Tighe of Hillings, Mont., spoke on
Nursery Development In the Northwest."
V. H. AVebcr of Nursery. Mo., was
elected president of the association to
day. Tho next convention will be held In
BIG HARDWARE STORE
AT DALLASTEX., BURNED
DALLAS. Tex., Dec. K.-Flre practically
destroyed the three-story building and
btoie of the Huey & Philip Hardware
company here today. One fireman was
slightly Injured. The damage was estl
nated at about '.50,000.
Forecast till 7 p. m. Friday:
For Omaha, Council muffs and Vicinity
-Fair and warmer tonight and Friday.
5 a. m S
C a- m 9
7 a. m 8
S a. m D
i a, in 11
10 a. in 15
11 a. m 19
12 m 23
1 p. m 26
2 p. m.; 29
3 p. m 32
Local "Weather Record.
1312. 1911. 1910. 1909.
Lowest last night S 29 9 22
Precipitation 0) .CD .00 .07
Normal temperature for today, 32 de
Deficiency in precipitation Blnce March
. 2.75 Inches.
Deficiency corresponding period, 1911,
Deficiency corresponding period, 1910,
Weather In thr (train Helt.
The wave of colder weather that moved
down over the Missouri Valley Tuesday
night has spread over the east and south,
and freezing temperatures prevail this
morning throughout the "astern state,
and extend south to the gulf Hates The
weather haH cleared In the east and it I
gfr.ernl'y clenr in the south, except it Is
Mill wmfflut unsettled 111 'he west gtllt
state?. Cold weather Is aenerul through
out the w.-kt, "Xcept it. ls somewhat un
settled mii the northern Rockv mountain
nlateau Tempeiatures are much higher
in the ipper Missouri alley and through.
iit the northwest, and the weather w'H
lie fair and warmer n this Unity to-r-'sUt
i'i ' Fr .
, f WELSH, Lo al Fotetister
Women's Egg Markets
Break the Prices
PHILADELPHIA Pa.. Dec. IS. The
campaign against the alleged corner In
eggs, begun yesterday by the Housekeep
ers' league, was renewed today with in
creased vigor. Kvcry candler that could
be found was kept busy all night Inspect
ing egg to supply the demand from all
sections of th clly.
Additional stations were opened and
forty-three were In operation at day
break. Auto tracks, furnished by public
spirited owner to old the women In
their campaign against the high cost of
living, were kept busy carrying tho eggs
to the sales stations.
The various settlement hoise where
social workers are taking an active part
In the campaign, were open for business
In time to sell the 24-cent eggs.
The retailing, who are nlamed by the
women for the high prices that have been
prevailing, arc showing signs of capitu
lating. Two large chains of stores today
offered their customers eggs at the price
set by the Housekeepers' league, which
Is from (J to 20 cents less than they nave
"You may say that we are In this fight
to tay," declared Mrs. W. 11. Derr,
president of the league. "If they attempt
to' put us out of business by slashing'
j prices we will have accomplished tho very
j thlug for which we are working. Our
I source of supply Is adequate to meet tho
I demand, whatever It may be.
I "While It ls too early to announce qur
I plans along other lines, it can 'be said that
j we don't intend by any means to 'confine
. our campaign to one against tho high
j price of eggs. Wo have made a careful
I survey of the prices of meats and other
i articles of food and we shall wage the
I some sort of warfare where the public ls
charged too much."
Bureau Makes 400
Matches in a Year
KANSAS CITT, Dec. 12.-"Out of 17,000
letters received from all parls of the
globe, 400 marriages have been accom
plished," says the report today by Father
William J. Dalton of the Church of the
Annuclatlon concerning the work of n
matrimonial bureau established by the
church a year ago.
"Letters came from Jerusalem, fiom
Constantinople, from Africa and South
America and nearly every state In the
union." Tho report continues: "1 liavo
kept two stenographers busy answering
them. When I receive a letter asking
for a mate of certain qualifications, I
refer tho writer to on Jr. the same sec
tion of the country who will come up-to
Nearly 75 per cent of the letters received
wro from women, according to Father
Dalton. A majority- of the women 'et
forth wealth as a qualification 'for"arT ac
ceptable husband, while not omHntan
asked for a wife with wealth.
'The" "bureau grtw out of a gathering of
unmarried young men and women of the
parish in the priests parlor last De
cember at which Father Dalton suggested
that there were too many single young
people In the parish who might as well
Suit Filed to Reopen
Receivership of the
Denver Savings Bank
DENVER. Dec. 12.-James A. Hill and
William Barth. directors and trustees for
depositors of the defunct Denver Savings
bank, late yesterday, filed suit for $J3,000
damages against Guy Leroy Stevlck, re
ceiver; former Judge John I. Mulllns and
others. The suit Is the outcome of lltlga-
tlon extending over seven years since
the bank closed In August. 1905. Hill ami I
Leonard Imboden. officials were . tried. I
convicted and sentenced to a term In tho i
penitentiary on-a charge of conspiracy
to defraud and were reelased In 1910. The
suit charges conspiracy on the part of
Stevlck. Mulllns and ptheis to close the
bank when it was solvent and alleges
that Mulllns approved Stevick's accounts
and discharged him as receiver a few
hours before his term as judge expired.
The suit ls the first step In the plans of
Hill and Imbodcn to pay In full the
claims of depositors, who have received
7 per cent of their deposits. Stevlck Is
said to be living in Los Angeles.
i Czar's Son Victim
of Nihilist Attack;
LONDON. Dec. 12. The Dally Express
this morning revives the story tijat Crown
Prince Alexis of Russia was the victim of
nihilism. It asserts that he Is suffering
from the effects of a wound made by a
trusted attendant who has ilnce proved
to be a nihilist.
The wound, says the Express. Is of such
a nature that the prince ls Incapable of
continuing In the line of succession to
the throne and therefore the appointment
of an helr-dcslgnate Is being discussed In
court circles, as Kmperor Nicholas'
brother. Grand Duke Michel, has re
nounced his right of succession.
INVITATION FOR DINNER
FOR PRESIDENT TAFT
WASHINGTON. Dec. 12. Arrangements
for the republican dinner in President
Taft's honor at the Waldorf-Astoria on
January 4 lire complete. It will bq under
thu auspices of the Republican club of
i New York, the Tnlon league club of
; New York, the Republican club of Massa
j chusetts and the I'nlon League of Pblla-
delphla. Two hundred prominent 'repub
licans have been Invited to act as'an
honorary commltteo at the dinner. Invi
tations have been 'Cnt to all tepubllcan
ImembeiM of congress, republican govern
j ors and members of the republican na
i tlonal committee. J. Von Vechten Olcott
of New York, In charge of the arrange
ments, told President Taft today that
there would be pqt two speeches. Ham
ilel L. Elder preildent of the Mafcaachu
setts Republican club, will welcome. tne
(president and Mr Taft will lespontl.
FOB PARCEL SERVICE
New System Will Be Effective at
Every Point on January
DELIVERY REACHES RESIDENCES
Carrier Service Will Continue as
Complete as at Present.
ANY ARTICLE MAY BE INSURED
Ten-Cent Fee Provides Indemnity if
Parcel is Lost. '
DISTINCTIVE STAMPS PREPARED
PnatinnMera ' Receiving: fret nt
Twelve Denomination for l'e .
In .New Service Map of ,
. n en for Sale.
WASHINGTON. Deo. 12. Regulations to
cover tho workings of the new parcels
post system, which fs to go Into operation
on January 1. next, were made public by
Postmaster General Hitchcock toduy. The
new system will bo effective throughout
the entire postal service at tho same time
mid will affect every postotflce. city, rural
and railway mall transportation route In
tho country. Kvcry precaution will be
taken by the Postotflce department to
have the mails moved with the usual dis
patch and all postmasters, superintend
ents and Inspectors have been directed to
familiarize themselves and their subordi
nates with every phase of the new system.
Mr. Hitchcock today expressed tho hope
that the public would fnmlllarlro Itsolf
with the nature of tho new service before
attempting to use it.
Information will bo available at any
postofflce In tho country In a few days.
The regulations provide that parcels of
merchandise. Including farm and factory
products (but not books and printed mat
ter) of almost every description up to
eleven pounds In weight and measuilng
us much as six feet In length and girth
combined, except those calculated to do
Injury to the malls in transit, may be
mailed at any postofflce for delivery to
any address In the country.
Local Delivery Cooinlet.e
Delivery will be made to the homes of
people living, on rural and star routes as
well as those living In cities .aud towns
where there is delivery by carrier. Where
there Is at present no delivery by car
rier ,the parcels will go to the postofflce,
as is the case with ordinary mall.
The postage rate for tho first zone,
that ls, within distances not "texceedlng
fifty miles, will be 6 cents for the first
pound and 3 cents for each additional
The rates increase for each successive
ony of the elpht 'zones nlQ. which the
country Is divided. trie,,max.muinrate Be
ins 32-tentsB pound, .wlilohvill. carry a,
parcdl across tiie continent, or even to
Alaska and the Philippines.
For a feo of Id cents a parcel may be
Insured and if the parcel Is lost In the
malls an Indemnity to the amount of ltd
value not to exceed S0 will be paid to
The law piovldes for the use of dis
tinctive postage stamps, and there ls now
being distributed to postmasters for use
in the parcels post system a set of stamps
of twelve denominations. , Parcel post
maps, with accompanying guides, are lo
be Fold to the public at their coJt75
cents through the chief clerk of the Post
Send Commission to
Europe to Study
CHICAGO, Dec. 12.-Plann for the com
mltteo of fleven members of the progres
sive party appointed yesterday to study
social conditions In northern Europe In
the Irtterests of the progressive party de
veloped rapidly. The commlttee'.Is to con
sist of two representatives of agricultural
Interests!, two of labor, one professor of
economics nnd two others to be chosen
without reference to their professions.
Modlll McCormlck probably will be iec
retary of' the body. The party Is expected
to sail during the early part of May.
Special attention Is to be given to th
study of widows' pensions, budget re
forms and Inheritance and Income taxes.
Colonel Roosevelt departed for New
"Goodbye, bojs. I've had a grand time,"
were his parting words.
Boy Who Threatened
to Kill the President-
Elect is Arrested
i NEW YORK, Dee. li-rllenpan Htein
berg, a 17-year-old boy, who Is alleged to
have declared that ho wbb going to New
Jersey and hoot Prenldent-eloct Wilson,
was arrested here this afternoon and held
without ball. A loaded revolver was
found in his pocket.
NBWARK. N. J.. Dec. 12.-A sub
poena for President-elect Wilson was
Isnued today by United Btatea Commis
sioner Stockton. Governor Wilson's tes
timony Is wanted at the hearing next
Tuesday of Seely Davenjort, Wairen
Ditnn and Jacob Dunn, who are charged
with having sent him threatening let
tels. The hearing, orig1nallyvet for Mon
day next, wis postponed to enable Gov
ernor Wilson to te(lfy
Women on the Jury
INDEPENDENCE, Kan . Dec. 12.
Twelve of the wealthiest and most promi
nent women of this city were- summoned
today to serve on a Jury In the case of
James lilue, charged with firing a shot
! through the window of an Interurban
(car near here, endangering the. lives of
j A mo if g the women summoned are the
iwles of two millionaire oil operators,
'two bankets w. es and two suffragist
Jmys mw Arm
a ' 1
Krom the Chicago Tribune.
SAYS CONYICTS FIRED FIRST
jJohn C. Trouton Testifies in Briggs
! Trial at Wahoo.
JURY EXAMINES THE WAGON
Vehicle linn Three Mullet Holm In
It llefenne linn Several More
"Wllnesseii to Kxmiiliie
Trouton Sllulitly Hurt.
, WAlJOp, .Neb,. Dec. l'.'.-l'peolal Tele
iraMrt'tsHrl .!;p.- WR? crp'wde.l this
moriilnK,wlifin.thojLrlal. of John C. llrlggs.
HeffTiiuh3l?yf,8puthi.Omaha, 'Was ro
slimed".' Detliiiy rifel "Warden John V.
'Ti6,ut6n ot iiouth Omaha was the first
witness .called, lie. was' one of t!ie..our
occupants, of, the foremost rig in the but
tle between the three esoape'd convicts
and posne. Ills testimony was. that the
convicts fired two volleys before any
shots Were fired from the posse. lie re
ceived several slight wnunds, one shot
passing through His hat. He saw one of
the corivlrts in the wagon rush towards
Roy Blunt, the driver, and point some
thing nt him, after which Itlunt fell from
the stat into the wagon In which the
convicts were tiding. The vehicle was
brought here and by an agreement of
counsel for the slate and defense the
jiirv was permitted to Inspect it. It be
came an object of curiosity for the vast
crowd attending court. There were three
btill'-t holes In the wagon, one appar
ently patscd through fiom right to left,
MrlKK Told Them l He t.'nreful.
The hat Mr. Trouton wore during the
fight was pWred in evidence. It luid n
bullet hole In the front secllnn. Mr.
Trouton fuither testified that Chi'-'f
Rrlggs cautioned members of the posse to
be careful in shooting as there was ail
Innocent man In the wiigon. .Sheriff
Chase of Harpy county was In the rig
with him. Neither he nor Sheriff Chao
fire!, but several shots were filed by muii
In the tig directly back of them.
Miss Millie Monnible testified as to the
lelitve positions of the com let In tha
wagon during the battle.
.IitiIki I'lnced on Stand.
Presiding' Judge Cimian was put on
the stand by the defense. He testified
that h had sentenced Shorty Gray to the
penitentiary for ti long term after he had
been convicted of bank robbery and that
bank officials and police officers through
out the northwest eon'ldered him a dan
Chief Rrlggs will tell his story to the
jury this afternoon.
THREE WOMEN DIE AFTER
PARTAKING OF WHISKY
HPOKANE. Wash. Io 12. -Miss Jen
nle Rot who with .Mr. Rslpli Scott and
Mm. William H. Host, partook lant Thurs
day night of a bottle of llipior which Mrs.
Rost had procured by sending a mes
senger boy to a saloon, died here tonight,
making a list of thrco deaths from a
cause which so far has baffled the au
thorities. An autopwy tonight on the body of Mrs.
Rost revealed no cause of death and the
coroner has decided to send the con
tents of the stomach to the state chem
ist at Pullman. Wash., for analysis.
A peculiar feature of the deaths was
that each woman suffered from paralysis
of the thtoat. which began last Satur
day. FOUR HUNDRED CADETS
ARE GIVEN DEMERITS
ANNAPOLIS, Mil., Dec. i:-Punlh-inent.
conUtlng of demerits and the de-
' privation of all prhiloges for the rent of
the academic year wa assigned today to
iW) 'midshipmen who wore found to have
Violated 8uierlntendent Gibbon's ordr
forbidding betting on the recent Inter
Heivlce foot ball game at Philadelphia.
It Is undei stood the youthx practically
confessed to having participated In the
formation of a i'i.O'O pool to wager wH''
the West Point iv let on tho result of
ggpPy All Blame Him
Old Man Friday, the Thirteenth
The National Capital
iiiuriln, Deermher till.'.
- -4 .
Met at noon.
Omnibus claims bill taken up.
Archbald Impeachment rommlltae met
at 1:J0 p. m.
Democratic senators In caucus appoint
eommltteo to plan action concerning
I resident Taft's nomination.
Met nt noon.
Money trust Investigation committer
continued taking testimony ,i elating to
the New York fitock exchange. '
IJQVrmailiMoLraiweBtlp.n ...cpntet- re
eumeil on the floor. ... ,
1 " !,';';"
that Lingerie is
Now Out of Style
LOS A N.GKLEH, Cat.. Dec. 12.-Cotinty
Assessor Hopkins intimated nt the state
convention of assessor .eaterday that he
Intended hereafter to ahe women's
llnetTC. Published report to that ef
fect resulted, in the convention helnj?" In
formed today that women of fa.ihlon do
not wenr lingerie. They wear sill: tighl.
Hopkins hud heave that there were
many wardrobes In Los Angeles that con
tained lacy, frilly things that cost up int
the thournnds, and he thouglit'these nr
tltips ought to yield county revenue. l!ut
several fashionable modiste, supported
by n number of society women, united
In the statement "no such thing."
They sail! that the privilege, styles liter
ally prevented the spending of thmuandN
on Irttlmnte srtirles of fenilne wear, aril
gave a schedule to bear out th" state
ment. "Hllk tlhta cost from V, to J1J. The
only gnimeut over the tights that will
not spoil the clingy nffect of outer drapery
nio sill; slips, which oust from J15 to Jfio.
The third article of the scanty present
day faHhlonnhln outfit I the corset, cost
ing from $15 for tho ordinary sort to th"
gold clasped stays thnt rein II nt JWi. And
that I all.
Hopkins said It whs not iinnli lo assess
j Hundred and Fifty
! Girls Have Narrow
Escape from Death
CHICAGO, Dec U'.-More than 15i girls
' narrowly escaped death today In a fre
j which swept through a five-story brick
"j building at North h'lftli avenue nTid West
I Lake street, occupied by several maun
' facturlng concern.
i Th; Rlrls were nt work 'In 'nil parts of
I the building when the fire broke out and
I filled the structure with Briioke.
j A panic resulted when the girl made
1 a dash for the doors and windows in an
j effort to eu'iipe. Many of the gliis
fainted or were oveirome by snitUte nnd
(vWern rescued with difficulty.
I Fifty girls, employed" on the fifth floor
of the building, crawledout of the win
dows onto a narrow ledge und climbed
to tho- roof of an adjoining structure.
i where thej later were rescued by fire
Two glrli eseaiied by Jumping through
skylights in the roof of an adjacent struc
ture. LURES GIRL INTO MINE
AND SHOOTS HER TO DEATH
PALOrSK, Wash.. Dec. 12. Luring ills
sweetheart Into the doptlui of a mine rioni
Harvard. Idaho, Jesse Dlllmau shot und
ll ljled Miss M Liner, IS years old, of
Helmtr. IdHho. and fatally wounded him
Mr Into last night, according to n re
port which ha i cached hurp.
Men employed In the mine entered tho
j tunnel to Investigate the cause of the
I two shots they hud heard, hut Dlllmau
j opened flic on them and drove them out
Dlllmau eiuwlcd to tho mouth of the.
tunnel this morning and uvc himself up,
allowing the miners to bring Ml-s Liner's
Inrty to the s irface
I SUIT AGAINST HORSESHOERS
(Associations and Firms Charged with
l Violating Sherman Act.
MONOPOLY NEARLY . COMPLETE
lllll Cliarire thnt Jtuniif not urer Klx
I'rii'fi and Refuse to Sell Kx
eept to Member of Or
DETROIT, Mich.. Dec. IS,-Te fUral
government 'lied a civil ontl-trust suit
h'ere todjuy against the' horeshoeirf"
"tVotit.V fn a lie) t-fnil In Ant'rffp' A'Horriev
General Wlckershnht seeks injdiictlnus
Against the Mnstor Horsoshnern' National
Protective association. Its officers and
manufacturers of drllleij horseshoes, ad
justable calk and rubber hoof pad from
continuing an nllrged combination and
conspiracy to confine the sale of then
articles n tlilf. country nnd Cannda to
Iforscshoers and prevent their sale direct
to horse ow net's.
Through unlawful agreements and coil'
tracts, It Is charged, the defendant have
seriously Interfered with Intestate nnd
foreign commerce In violation of tho
Monopoly Xru r I r. Complete.
Almost nil horseshoeing, t lie) govern
ment contends la now dene nt shops of
members of the. defendant horseshoers'
association, orgauled In 1!KW. to succeed a
voluntary association nlso declared to
have entered Into an unlawful combina
tion. It Is alleged Hint verbal agreements
between the association and manufac
turers of drilled horseshoe nnd adjust
able calks provide that such tnauufne
turers will market their piodtict through
hardware jobber under u sale contract
which empower the manufacturer to tlx
Ihe price at which the Jobber sells to re
tall hardwaiti dealer.
The agreement provide. It I charged,
that In states other than Montana, Utah.
Washington. Wyoming nnd Idaho, horse
shoe and cnlk will be aold nt a price
per cent nbovr the prlro charged to
horxeshoera. while In the five slates men
tioned the price should be 50 per cent
above that charged to horseshoers.
The government asks the annulment of
the agreements and the prohibition of tho
alleged discriminations and practices.
I.I! of DefenilnntK.
The following are named among the de
fendants: The Master Horscnbuei' National Pro
tective Association of America (New
1 iContlnued on Page Two.)
Los Angeles Man is
Killed by His Son
LUH ANGELES. Cat.. Dec. 12.-Danlel
II. l'.lcKart w .hot and killed today
by .Martin, his lS-year-old son, while ad
ministrating a whipping to an older son.
Martin's first fctory. corroborated by his
hi others, was that a rifle with which he
was playing, wuji discharged by accident,
the bullet entering the ahed where his
father was at work and striking him close
to the heart. Neighbors fald ltlchart had
taken an older bov to the fched to whip
him and under pressure the lad later con
fessed, saying his father hiftl buen hnbltu.
ally brutal to the mother.
The shooting, he said, followed a family
quarrel In which tho mother took tho
buys' part when the fnthor sought to
chastise one of them for not having
obeyed orders to bring in firewood.
I MAN WHOSE TERM IS
NEARLY JJVER UNSEATED
' WASHINGTON. Dec. lr.-Reprcscnta-tte
Chai lea C. Bowman of the Eleventh
Pennsylvania district was unseated in the
' house today by a voto or 1S1 to 118, In
favor of G. H, Mclxftn, his democratic
' opponent, who charged corrupt prac
tices In nowmaii'"e!cc.to'n. Tho contest
was out the election of 1910 and gives
to McLean the salary and allowance for
j the term,
ON STOCK EXCHANGE
Peculiar Ways of Wall Street De
scribed by Witnesses in House
DECK STACKED FOR BROKERS
Membership of Stook Exchange Not
Increased in Forty Years.
FAILURE HITS THE CUSTOMER
His Securities Rehypothecated for
MANIPULATION BEYOND CONTROL
I1ulnt with One Hum! nnd Selllncr
same TIiIiik llti Other I,,ltl
innle So l.linu' hh Colll
nilnnloti Are Held.
WASHINGTON, Dee. 12. The high
way and bywayn ot finance as traversed!
by operator on the New York Stock ex
change. Were mapped out before the hour
banking ami currency committee today
In Its mono- trust Inquiry.
Frank K. Sturgls of the brokerage firm
of Strong, Blurgl & Co., former president
and a member of the bonrd of governor!
of the stock exchnnge, told the commit
tee nt length nbout tho ways of thn
The examination of Mr. Sturgls bjr
Sntnuel ITntormyitr, counsel for the corn
mlttee, bristled with technical question
nnd Involved digression). Mr. Sturglw at
times Insisted on long explanations In an
swering question anil once flatly de
clined to answer. Ill counsel, John G.
Mllburn. Interfered to preserve tho dig
nity of tho occasion.
Tho testimony of Mr. Sturgls brought
out tho following olnt:
The membership of tho stock exchange
bun not been lucreawd since ISfin, when
It was fixed at 1,10(1. Since then the busi
ness done and the stocks listed on tho
exchnnge havo Increased about fifty
Mr. Sturgls declared than nn lnetcaso
In membership wn unnecessary for th
presrnt membcrnhlp wns well able to
linudlo the business, of the public.
In a dozen recent failures, Mr. Sturgls
ndmltted stock exchange ballses IiriI car
ried with them stock owned hi part by
tho partners, but hypothecated by the
, brokers for more than the real ownership
1 of the broker. In such 'cases the pro
ceed of tho sale of the bankrupt brok
er's sent on the oxcluvngo ocs, It wns
explained, not to hln customer, but hi
creditors Inside the exchange. Mr. Stur
gls thought llils' war fair' nnd Just, as it
was a regulation ubcrlbcd to by the
tnembets In the exchnnge nnd recognized
by thn public.
llrolf era' ' Prnt-tlt'en Vlreil.
Stock exchange broker usually use lh
stock owned, In part by their customers n
collateral to support their own loans, Mr.
Sturgls said, rehypothecating the securi
ties for a greater amount thnn is repre
sented In the debt of the customer on the
stock. He added that the governors ot
tho exchunge would welcome any sugges
tion that would put a stop to tho practice.
Ho dltagreed with a scheme proposed by
Mr. I'ntcrmycr that would force brokers
to murk on "loan envelopes" containing
their collateral, tho amount for which
they were already held as security by the
btokor. In order that the bonk might made
its loan to the broker on that basis. This
cheme, Mr. Hutrgin contended, would en
tall an almost prohibitive amount of irooki
Mr. Sturgl. through a drilling examina
tion, Insisted the stock exchange could,
not prevent manipulation of the market
by pools nnd syndicates. Ho said thoy
could not go behind a transaction to dis
cover a buyer or seller's motives.
On this point Mr. Sturgls nnd counsel
for tha committee had a spirited argu
ment. lion lo MnUe .Market AetlTe,
"In It legitimate for a member of the
exchange to give an older to fcell a cer
tain amount of stock to one broker and
an order to buy tho same amount of the
same stock to another broker?" asked
"Ho long as there Is no collision and th
commissions are paid It Is not lltedtl
mato," ald Mr. Sturgis.
Tho Important iolnt is that tha
broker's commission, ho paid?" asked tho
"Yo. that Is It."
"You know the object of that sort of a
transaction Is to rule or depress tho
price of tho stock?"
"The object Is to urcat an active
"A market that appears to be active,
Mr. Untermyer sought In vain to get
from Mr. Sturgls his view of the position
of the trading public In such a trajisu-
(Contlnued on Pago Four.)
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