Evening star. [volume] (Washington, D.C.) 1854-1972, 1885-10-31
Stock Brokers and Their Pay.

from an article In the November Harper'a
Generally speaking, brokers are of three
classes. The first does q regular commission
business; never speculates, except on occasions,
and succeeds best. The second are the scaIpers,
who buy and sell in the hope OF making one
eighth or one-Quarter of one per cent profit.
These are the physiOgnOmists of the inStitu-
ton. Reading the faces of associates who have
large orders, they buy with the intention of
selling to them at a rise. The scalpers are bust
est when there are more brokers than business.
Too smart to live, they usually die of pecuniary
atrOphy. The guerrilas sub-cass of the
cialty OF dealing in inactive stocks have for
merry fixed the unsavory appellations OF IS Heli's
aeaies Of an the thrd upon certain
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 is
said to have accumulated a handsome fortune
The ideal broker Is cool, imperturbable. un read
able, Knowing or accurately guessing the move
ments Of the great operators, able to buy the
most stock with the least fuctuation, cover
Ing his tracks in the execution OF a large order
by purchasing in small quantities and by
shrewd selling at the same time. Washington
E. Connor, partner and broker of Jay Gould
In the exchange.
The compensation paid to commission bro
kers ought TO be satisfactory: 1t is y of per
cent upon the purchase and upon the sale of
all securities other than government bonds es-
timated at par value, when made for a party
who is not member of the exchange. No bust.
ness can be done tor less than this rate to nom
members. The minimum rate charged to
members Is 1872 of per cent, except when
one member merely buys or sells for another
giving up his principal on the day of the trans
aciion), and does not receive or deliver the
stock, In which case the rate must not be less
than SO OF / per cent. The commission
on mining stocks selling in the market
at SIS per share or less is S3.l2t2 per 100
shares; If at more than IS and not over
$40 per share, $6.25; ii more than $40
per share, S12.5O. To members of the exchange
the minimum commission charged is 81 per 100
shares. Contracts for a longer period than three
days carry per cent interest," Any violation,
direct or indirect, OF these laws-even the offer
ing to DO business at less than these rates-is
punishable by expulsion from the exchange,
sions OF the membership Of the offender The
commission broker who carries stock for his
custo uer and furnishes most of the money Occa-
sionally charges one fourth OF 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
brokers For the year ending Dec. 81, SS1, the
transactions of the stock exchange COM
puted to have amounted 10 $12,S1 G, 246. 800
and paid. The commissions thereon at one
fourth Of per cent would be $32 ,616,
which, divided equally among LOO brokers,
would give to each the snug little sum of $29,-
121. This as related TO the cost Of his seat, Is
almost Q, quite equal to the israeiitss sheat
remuneration; some receive five or six times as
much. Profit Is propOrtiOned to size OF sales
ana purchases. It Is impossible, without DOS
session of an abstract of each brokers' business,
10 accurately estimate the amount Of fictitious
sales, or sales on ''margins,' as compared with
Judge, be less, and is probably much more, than
one half Of the whole.