The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1885-11-17
The SPIRIT OF DEMOCRACY.
TUESDAY, NOVEMBER II, 1885.
THE DEALERS IN STOCKS.
New York Stock Brokers and Their
Pay.
Three Glasses of BrOkers-.H eayy
COmpensatiOn--Average Amount
Made by the 900 Brokers.

Generally speaking, brokers are Of
'hree classes. The first does regular
commission businesa; never speculates,
except on occasions, and lcceeds best.
The cond are the scslpers, who buy
and cell 10 the hope OF making one.
"igbth or one-quarter OF one per cent
profit. These are the physiognomists of
the institution Reading the faces Of as.
socia'es who have large orders, they buy
with the intention of selling to them a;
8 rise. The sca'pers are busiest when
there are more brokers than business.
Too smart 10 live they usually die Of pc
cunisry atrophy. Tue guerrillas are 9
Iut-class OF the scalpers, lew in number,
and by making specially OF desling in
insctive stocks have formerly fixed the
unsavory appellation Of SHELLS kitchen"
and "rnbher's roost" upon certain local-
ties of the floor. Tbe third class is con
posed Of traders in particular stocks, by
whose ri-e and fall they try 10 enrich
themselves, in some instances closing
contracts every day. One trader in
North west for sixteen years is said to
have accumulated handsome fortune
The ideal broker is cool, imperturable,
unrea1sbie, knowing or accurately guess
ing the movements Of the great opera,
tors. abe to buy the mos stock with the
least fuclua'Ion, covering his tracks in
the ex cution of large ord r hy pur-
chasing in small quantities and by shrewd
selling a the same time. Washington
E. Conner, partner and broker Of Jay
Gould, does presumably the largest bro
kerage business in the Exchange.
The compensation paid to commission
brokers ought to be satisfactory. 1t is
one eighth OF one per cent. upon the
purchase and upon the sale OF all secu
rites Other than government bonds, es'
ipa'ed at par value, when made for o
partj who Is not member OF the Ex-
change. No business can be done for
less than this rate to non.meGbers. The
minimum rate charged to members is
oue.thirty second of one per cent. ex-
cept where one member merely buys OF
sells for another (giving up his principal
IN the day OF the transaction) and does
not n tceive or deliver the stock, 10 which
case the rate must not be less than one
f'tie Of one per cent The commis'
ion on mining stocks selling in the mar.
ket at IS per share or less is 50 II per
100 shsres il at more than S5, and not
over $40 per share, S6.25; If more than
$40 per s,are, $l2.50 To members o.
tn, Exchange the minimum commission
charged is 81 per 100shares Contracts
for longer period than three DAYS car
~ six per cent. interest. Any violation
direct or indirect, of these laws-ever
the offering 10 do business at less thar
these rates--is punishable by expulsion
from the Exchange, and sale forthwith
ny the committee on admissions OF the
membership OF the offender. The com
mission broker who carries stock for bi:
customer and furnishes most OF the mon
ey occasionally charges one.fourth q
one per cent. or 825 per 100 shares =
Ten bonds, at par OF 81 600 each, arr
reckoned equivalent to 100 shares, ant
are euhject 10 the same commissions.
What compensation will these rate'
afford to hroke's2 For the year ending
d cemb,r 81. 1881, the transactions o
:he Stock Exchange are computed Il
have amounted to Sl2Sl6 246 600
Checks for this enormous amount wer,
drawn and paid. The commission
thereon at one.'cu-th OF one per cent
would be S32,0406l6; which, divided
equally smopg i.l00 brokers, would Civ
to each the snug little sum of S29. .l72
This. as rela'ed to the cost of bis seat
fs almost or quite eq,al to the fsraelite'
sshent pr sbent" Not all the broker
receive this remuneration; some receiv
Eve or six times as much. Profit Is pro
por,ioned to sizs of sales and purchases
II is iupo .sible, without possession o
an abstract Of each brokers' business, +
accu -ately es innate the amount OF fic,i
tious sa'es, or sales on "msrpius," a
compare I with sales to bona e te invest
Tors. 1t can not, We judge, he less, an
Is probably much more than one-half Q
the whole.-R Wheatley, in Harper