The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1885-12-09
THE DEALERS IN STOCKS.
NEW YORK STOCK BROKERS AND
THEAH PAY.
Three CIass es of BROKERS I7eavy
COmpcnSatiOn-Aver Amount
Made by the 1,1OO Brokers,

Three CIaSa es of BROKERS Igeavy
COmpcnSatIOn-Ave Amount
Made by the 1,1OO Brokers'
Generally speaking, brokers are OF
three classes. The first does a regular
commission business; never speculates,
except on occasions, and succeeds best
The second are the scalpers, who buy
and sell in the hope of making one
eighth or ne-quarter of one per cent:
profit These are the physiognomists oil
the institution. Reading the faces OF
associates who have large orders, they
buy with the intention of sellingto them
at rise. The scalpers are busiest when
there are more brokers than business.
Too smart to live, they usually die OF
pecuniary atrophy. The guerrillas are
sub-class of the scalpers, few in number,
and by making speciality of dealing in
inactive stocks have formerly fixed the
unsayory appellations of "hell's kitchen"
and "robbers' roost" upon certain locali-
ties of the floor. The third class is COM
posed of traders in particular stocks, by
whose rise and fall they strive to enrich
themselves, in some instances closing
contracts every day. One trader In
Northwest for sixteen years s.said to have
accumulated handsome fortune. The
ideal broker is cool, imperturbable, un-
readable, knowing or accurately guess
ing the movements of the great opera
tors, able to buy the most stock with the
least luctuation, covering his tracks in
the execution of a large order by pur-
chasing in small quantities, and by
shrewd selling at the same time. Wash
IN cxfn md hrnlgpr
Jay Gould, does presumably the largest
brokerage business in the Exchange.
The compensation paid to commission
brokers ought to be satisfactory. 1t is
one-eighth of one per cent. upon the pur-
chase and upon the sale of all securities
other than government bonds, estimated
at par value, when made for party who
is not member of the Exchange. No
business can be done for less than this
rate to non-members. The minimum
rate charged to members is one-thirty-
second of one per cent, except where
one member merely buys or sells for an
other giving up his principal on the
day of the transaction), and does not
receive or deliver the stock, in which
case the rate must not be less than one
fiftieth of one per cent. The commission
on mining stocks selling in the market at
So per share or less is SO. 12b per 100
shares; if at more than So, and not over
$40 per share, So. %; if more than $40
per share, $12.50. To members of the
Exchange the minimum commission
charged is 50 per 100 shares. Contracts
for a longer period than three days
carry six per cent. interest. Any viola
ton, direct or indirect, of these laws
even the offering to do business at less
than these rates-is punishable by expul-
sion from the Exchange, and sale
forthwith by the committee on sd-
missions of the membership of the
offender. The commission broker who
carries stock for his customer and fur
nishes most of the money occasionally
charges one-fourth of one per cent, or
$50 per 100 shares. Ten bonds, at par
of 81, 900 each, are reckoned equivalent
to 100 shares, and are subject to the same
commissions.
What compensation will these rates
afford to brokers2 For the year ending
December 81, 1881, the transactions of
the Stock Exchange are computed to
have amounted to $12, ,S16, 246, 900.
Checks for this enormous amount were
drawn and paid. The commissions
thereon at one-fourth of one per cent.
would be $32, 04O, GIG: which, divided
equally among !, 100 brokers, would give
TO each the snug little sum of $29, 1877.
This, as related to the cost of his seat, is
almost or quite equal to the Israelite's
''shent per shent." Not allthe brokers re-
ceive this remuneration; some receive five
or six times as much. Profit is proper
TONED to size of sales and purchases. tits
impossible, without possession Of an alb
stract of each brokers' business, to accu-
rately estimate the amount of fictitious
sales, or sales on margins, as compared
with sales to bona fide investors. 1t can
not, we judge, bc less, and is probably
much more than one-half of the whole.
--R. Wheatley, in Harper.