Morning journal and courier., 1881-03-11
Profits of Brokers.
Some of the Ways in which Money is
 Made in Wall street.

Some of the Ways in which Money is
 Made in Wall street.
 A Wall street broker with taste for fig ures outside of those of the stock list of the exchange or the tape of the indicator indulged recently in a computation as to the cash value of the exchange and it's belongings in these flush times.
 Beginning with the exchange itself" /" he said, i've have a very nice piece of property to consider. When the enlargement and other extensive improvements are completed the exchange will be superb affair and well worthy of the enormous business that IS done in it. think that the exchange could safely be put down, when the repairs are made, at fully $1, ,5oO, 900. Now, we'll con- slider the value of the seats in the board. It's all fiction, you know, about seats, for no one has a seat except the presiding officer or @ chap who is smart enough to slip into one of the few cushioned arm chairs around the sides of the room, which are usually monop- olized by the old fellows who can't stand the pummelng, pushing, showing and climbing Tn the center of the room as well as they could a few years ago. We'll, seat IS now worth $32, ,O0O, cash or check. There are about 1, 100 seats, worth in round num- bers $35, 200, ,OO0 No individual can own, or at least use, more than one seat. The same rule applies to firm One member of the firm is usually spoken of as the member who goes into the board The privilege may be delegated to a confidential clerk. Just to show how valuable seat is as a matter of investment, I'll tell you little story. young clerk worked hard and saved his money. When seats were worth less than $5, GOO, and that is not many years ago, he bought a seat. A firm that had just been or ganized offered him round sum year for the use of his privilege. He accepted the firm, but really only entitled to the income from his seat. He was transferred at once from an iIly-paid employe into young gentleman of leisure. Some years ago, when the silver mining excitement broke ont in California, he went there, but his in- come was regularly remitted The firm has grown to be big one, but 1t prefers not to change the old arrangement. The young man, having an assured income to back him up has prospered in California, and bids fair to be a very rich man. In fact, even at the present price, there is no better investment for money than seat in the board, provided that the investor is man of agreeable man. ners. and has a knowledge of the ways of the street, or associates himself with man who has. It is not improbable that the price of 8 seat will rise, within the year, to $50, 900, if the tide of general prosperity continues to strengthen, for the volume of business tran sacted daily upon the exchange is tremendous and is steadily swelling. Why. day when 5OO 900 shares of stock are sold and bought is an average day now. The commissions on this buying and selling are $25 for every 100 shares, or $125, 900 for the days business an average of more than $10o day apiece to the 1, 100 brokers.
 'sWhy I'll tell you something that very few people know, and that is, that 8 broker who has fair business relies upon his inter est account alone to pay his whole office ex- penses Russell Sage, probably the largest operator in stocks in the world, the boys tell ne, expects them to divide their commis sion with him when they, drop in for dick CT over privilege, and that this little side speculation braces him up for all of his bus mess expenses. So, you see, the commis- sions in we'll regulated office are clear profit. By the interest account in brokers office I mean the percentage that a broker usually charges for carrying your stock for you until you are ready to sell out, or to get sold out, if your margin runs down too low to make the brokers commission and interest Q sure thing The banks are very liberal in their discounts to members of the exchange. A broker can get money as rule, even ln tight times, at 8 rate that leaves him Ia considerable margin of profit in charging interest to the customer. A good many firms, of course, don't charge any interest, but that is because their profits from commissions are so large that they don't care about such trif1e as the interest on the money that they pay for the stock they buy customer. Those are the kind of brokers who have customers who buy and sell 25, GOO shares of stock in day,