New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-09-20
4PBTTRAGF TRADING IN STOChS.
IMPORTS MADE on TIE EXCHANGE TO PIT
STOP TO THE PRACTICT-TTS EFFECTS.

IMPORTS MADE on THE EXCHANGE TO PIT
STOP TO THE PRACTICF-GTS EFFECTS.
A movement has been started on the S''"F EN-
change TO PIT stop 10 NIL arb'irae' business De
Xrw-York and rOs'on. AMI New York anu Tl "'cF
mia The contention is made by th-' Oppose" "
This class OF business that IT Is Of no benefit To t"'
rychonre and is In fact. positively harmful to tho
intcrorts Of New York broicrs. ON the oth'r mana
Tho advocates OF tho system say That, far from Ing
d.irimcnt 10 regular business, II really r~ul's III
transactions which would not otherwis" DC ""u'r'
,nhen and by swelling IN" amount Of business uA''
.c,rs 20 make the market. and Keep II active They
% 40 far as say that In dun times tho hrhta'o
business Is often tho principle factor In preventing
absolute slagnnon. and Is II, all times henoni
ard not n harmful feature In the situation
Arhi,rnpe I'm stocks 60 STATS ir buying them In one
market ond scllng them IN another. For Instance.
the Philadelphia market generally lars somewhat De
hind tho Nc,yYork market Many brokers have
long stance telephone, directly from the Goor O. the
New. York Exchange to the floor OF the Phlnirlphi
EXCHANGE New-York broker learns from his
Philadelphia CORE pondesn that certain stock Is
sclI,ng In philadelphia Ia Of point below the New
York price lie buys In the former Ct y and immel
,,ey sells here pockctlng the difference In the quo
afions as his pront The same system Is followed ont
between Boston and New York md London and New
york the cable. instead Of the telephone bciog toi,
Of course, I'm the latter cnso.
order To Drncnt Dy tnf uU'r'Hrc III inc
the transactions have 10 he done quicliy. ana 70
facilitate the operation the brokers use Il system OF
signalling With the fingers from the floor OF the EN-
change TO men stationed at the telephones. some
ho,ises have rs many Ave special men 10 attend TO
This business alone.
One argument used by the opponents OF nrhrag"
hiSnrss Is that In Philadelphia the regular brokers
commission for the execution Of orders Is 1-l6 OF
pcr cent instead OF is OF per cent as here. This. II
4, urged tends TO attract business there which would
otherwise come here. but Just what bearing this fact
has on the question OF arltragc trading Is not made
clear In Boston the authorized commission Is the
same AS I'm New-York The stocks IN which arbitrage
trading Is chiefly done NJ present are Philadelphia ana
Reading and Northern Pacific preferred
A Joint meeting OF the Committees on Law and Ar
rangcmcns WIS held yesterday 10 consider the com
plants Of those opposed the arbtIage business and
many OF the members who make practice OF sich
dealings called upon to explain their position:
After studying the matter the Joint committee VIII
report the BOnrd OF Governors, ana that BODY VIII
take whatever action Is decided upon There are no
rules BY which arbrage trading be prohibited, ana
one method proposed to accomplish the end Is 10 take
ont all the telephones now on the nrOr II the EX
change and then to put them back only the express
condition that they shall be used for communication
between the Exchange and the Offices OF the members
only.