The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-04-24
sLoW ar TEE 1RBrrnAeE BUs1sEsa
Conunusus Tsisphon. ouotsusrs Fror- the
Floor ~ the kxehrngs ProhibItsd.

Co,,,r-ous Te,spho,s ouotatieus rrorz the
Floor ora Exehrngs ProhibItsd
The Governors OF the New York Stock Ex-
change after another long session. decided
yesterday afternoon that they would do what
they could to kill the arbitraRs business. This
arbitrsee business has grown up more psrtic-
uiarly in the last ten years. and II has been OF
especial prominence on the Exchange since
the long. distance telephones came into opera
tion.
The ions. distance telephones communicate
with Boston, Philadelphia, and Baltimore.
and the complaint has been very gen
eral that the stock brokers OF these cities
have been in clover. while the vast major
ity OF the members OF the New York
Stock Exchange have suffered from loss
Of business. This statement however. IL
disputed By some Of the very best brokers on
the Exchange who have not hesitated to de-
clare that all legitimate methods tending
to expedite business are laudsble and even
tually benefit all hands.
Arhitrage in the stock market depends for
its pronts on the difference In price OF Sc
curity In any two markets The stock IL
bought where II Is cheapest and sold where 1t
is dearest. and with the aid Of the telephone
the transactions may be practically stimuli
taneous.
The long distance telephones. which are
within q few feet OF the brokers In the Board
room. are constantly kept open to Boston.
Philadelphia. and Baltimore. The brokers
have their agents constantly at these tele-
phones. and their customers In these cities
constantly have their agents at the other end
OF the telephone. II st. Paul Is 50 In New
York and U2is in Baltimore the chap at the
other end OF the telephone In Baltimore will
send over the telephone word to buy 100 at %.
and In two seconds he has sold II in Baltimore
at 92Ii. netting $50, and this profit 10 subse-
oqenS t Ts sto N .gorS S
telephone BY system OF sImple but effective
r1srSst at both ends Of the wire is known By
both men, although not q. word e spoken.
viii hold the index finger Of sIther hand in, a
horikontsl Possisb5Gn and shoSld the price IN
sssn Ssst 81 eana The ndsa nser IN W an
upright position. In case the stock Is W in
BstpoiG s6S ndsI finger e ts t ole So
brokers' were permitted to work n z sort q
Exchange. and the market quotations were
flashed to- London and q reply very often re-
Ssyd trade. have BEEN made Setwsen this
market and the EnglIsh CAPITAL IN ysTy lev
S BUSINESS CAME sn is S SseSts Win fhd certain
class OF the members Of the Stock Exchange
the telesraphers were bsnished from the
the Exchange and the arbitrage brokers Office
carried the quotations. which were repeated
to London as formerly. But the modern way
ia even more expeditions than the telegraph
ing from tho gallery.
:. This arbitraee business By telephone has. in
the estimation Of many. diverted legitimate
business from the brokers OF the Exchange.
who have paid anywhere from so. 900 to StO.-
600 for their seats. and whose ONCE aud other
expenses are large. The Governors. after
hearing all arguments. had the final meeting
on the question yesterday. and after shutdown
adopted tho following resolutions:
That In the judgment OF this committee Zone com.
posed OF the m embers OF the Law Committee and the
Committee on Arrangements which has discussed the
subject as joint comnitteej the sending OF continu
quotations by members OF this Exchange from the
floor of this Exchange IL detrimental to tho interest
and welfare OF the Exchange and IL prohibited.
That the so-called arbtraEe business or trading be-
tween this Exchange that OF other cty OF the
United States at present conducted 10 detmen tal
to the interest and welfare of this Exchange and Is
prohibited,
That the Committee o. Arrangements b. authorized
and instructed to that th. orsgong resolutions
carried into effect and that the prohibitions therein
are expressed and enforced.
Just what steps the Committee OF Arrange
ments will take to carry out these resolutions
IL not yet known. 1t was believed that they
will remove tho long distance telephones to
another and more secluded part OF the Ex-
ChanCe.