Mexico weekly ledger., 1886-04-01
sTocK-BRoKERs. PAY.

oenerally speaking. brokers are OF
taree classes. The frst does q regular
commission business; never speculates.
1ncept on occasions, and succeeds best.
Ane second are the scalpers, who buy
ana sell In the hope of making one
eigntn or one-quarter of one per cent
pront These are the physiognomists
Vi the institution. Reading the faces
OF associates who have large orders.
they buy with the intention of selling
TO them at rise. The scalpers are
busiest when there are more brokers
than business. Too smart to live, they
usually die of pecunisry atrophy. The
| guerrillas are q sub-class of The scalp-
ers, few in number, and by making
specially of dealing in inactive stocks
have formally fixed the unsayory an.
pellations OF "Hells Kitchen and
Robbers Roost'' upon certain locali-
ties of the floor. The third class is
| composed 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, unreadable,
knowing or accurately guessing the
movements OF the great operators, able
to buy the most stock with the least
fiuctuation. covering his tracks in the
execution of a large order by purchas-
ing in small quantities, and by shrewd
selling at the same time. Washington
Il. Connor, partner and broker of Jay
Gould, does presumably the largest
brokerage business in the Exchange.
The compensation paid to commits
sion brokers ought to be satisfactory.
1t is 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 q 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 another (giv-
ing 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
$5 per share or less Is s. l22 per 100
shares; if at more than $5 and not over
$40 per share. Sc. 25, if more than $40
per share. $12.50. 10 members OF the
Exchange the minimum commission
charged Is 90 per 100 shares. Con-
tracts for longer period than three
days carry six per cent. interest Amy
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 fur
nishes most of the money occasionally
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, aud are subject to the
same commissions.
What compensation win these rates
afford to brokersp For the year end
ing December 81, 1881, the transactions
OF the Stock Exchange are computed
TO have amounted 10 $12.Sl6, 246, 600.
Checks for this enormous amount were
drawn anu paid. Tho commissions
thereon at oae-iourth OF one per cent
would be S32, ,040. GIG; which, divided
equally among l,l00 brokers. wonld
give TO eacn the snug little sum Of
s2g. l27. This, as related 10 the cost
OF his seat, is almost or quite equal to
the Israeiite's ''shent per shent." Not
ali the brokers receive this remunera-
ton; some receive five or six times as
much. Profit is proportioncd to size Of
sales and purchases. 1t is impossible.
without possession of an abstract of
each brokers business, to accurately
estimate the amount of fictitious sales,
or sales on margins" MS compared
with sales to bona .fde investors IL
can not, VIC judge. be less, and is prob
ably much more. than one-half Of the
whole.-R. Va atiey, ia Harper's Mag
nzf,se TCr AJUemtsr.