The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1885-11-28
BROKERS. COMMISSIONS.
rhs Pay Received By Members Of the Nes
fork stock Exchange.

rhs Pay Received bs Members Of the NeS
fork stock Exchange.
Generally speaking. brokers are q
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 ono
eighth or one-quarter of one per cent
profit. These are the physiognomists
of the institution. Reading the faces
of associates who have large orders.
they buy with the intention of selling
to them at a 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 scalp
ers. few in number, and by making
specially of dealing in inactive stocks
have formerly fixed the unsavory appel
latiens Of ''Helrs Kitchen" and Rob
bers' Roost" upon certain localities of
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 Northwestern for sixteen
years is said to have accumulated q
handsome fortune. The ideal broker
is cool. imperturbable, unreadable,
knowing or accurately guessing the
movements of the great operators, able
to buy the most stock with the least
fuctuation. covering bis tracks in the
execution of large order by purchas-
ing in small quantities, and by shrewd
selling at the same time. Washington
Z. Connor partner and broker of Jay
Gould, does presumably the largest
brokerage business in the Exchange.
The compensation paid to commission
brokers ought to be satisfactory. 1t 10
one-eighth of one per cent upon the
purchase 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 DO
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 another 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 IS per
share or less is $3.12t per 100 shares;
if at more than So and not over $40
per share, 1925; if more than $40
per share, $3.50. To members of the
Exchange the minimum commission
charged is 81 per 100 shares. Con-
tracts for a longer period than three
days carry six per cent. interest. Any
violation, direct or indirect, of these
laws-even the Offering to do business
at less than these rates-is punishable
by expulsion from the Exchange, and
sale forthwith by the Committee on
Admissions of the membership of the
offender The commission broker who
carries stock for his customer and
furn shes most of the money occasion
ally charges one-fourth Of one per cent,
or S25 per 100 shares. Ten bonds, at
par of $1,000 each. are reckoned
equivalent to 100 shares, and are sub
ject to the same commissions.
What compensation will these rates
afford to brokers'? For the year ending
December 81. 1881, the transactions oil
the Stock Exchange are computed to
have amounted to S12,816, 246. 600.
Checks for this enormous amount were
drawn and paid. The commissions
thereon at one-fourth of one per cent.
would be 1872, 040, GIG; which, divided
equally among LOO brokers, would
give to each the snug little sum of s29,-
127. This, as related to the cost of his
seat, is almost or quite equal to the
Israelite's .'shent per shent." Not all
the brokers receive this remuneration
some receive five or six times as much
Profit is proportional to size of sale.
ana purchases 1t is impossible, with
out possession of an abstract of each
brokers business, to accurately estimate
the amount of fictitious sales, or sales
on margins" as compared with sale;
to bona fde investors. 1t can not, We
judge, be less, and is probably much
more, than one-half of the whole.
Wheatiey, in Harper's Magazine.