New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-02-16
FARMING TO EVIL-DOING BROKERS.
PRESIDENT sTURGIs. OF THE STOCK EXCHANGE
SPEAKS TO MEMBERS ON INFRACTloNS
oF THE COMMISSION LAWS


SPEAKS TO MEMBERS ON INFRACIloNS
OF THE COMMISSION LAWS
A small-sized sensation was made in Wall street
Yesterday when Frank X. Sturgis. president OF the
Stock Exchange assembled the rostrum ana maze
a speech directing attention TO the penalties lot
infraction of the rules governing the payment Vi
commissions. 1t is said that there has peeh co'iu-
sion between some OF the clerks employer at ''ie
board room telephones which connect WIN oroh-
ers' officers and some OF the brokers on the MOOT
who execute orders for fellowmembers at the regu-
lar rate of 50 per 100 shares BY agreement TO pay
the telephone boys part of this commission some
OF the boys said TO have been induced 70 'rahs
fer orders telephoned TO the Exchange from one
broker to another. When the firms telephone III
structons were not obeyed the clerks nave eN-
plainei that they could not find the broker to
whom the order was TO be delivered and so turned
II over to another-that man being the one VINO
"divvied" on the 81 commission. In the case or
houses which deal In from 800 to l'vo shares d
day. even in dun times the inducement 10 this
evasion of the commission law of the Exchange
might become OF pecuniary importance Announcer
reason for the warning given by President Sturgis
is 10 put a stop 10 the practices of some outside
concerns who advertise that they execute orders
on the Stock Exchange. which they could not do
in competition with the members unless commits
sions were divided.
President Sturgis made the following address:
During times Of financial depression Wheh III"
business OF this Exchange Is as stagnaht as IL nov
IL. there is strong temptation for ine t, 80
make unusual efforts 20 obtain lucrative business
by means which would be considered az an evasion
OF the commission law of the Stock ENchange. IL
manifest that this law IS the foundation or our
strength and that dislOyalty 10 ii Is not only dls-
loyalty the institution of which we are members,
but also TO the personal honor of the ind,vldua IL
matters not whether such evasion be IN the form
of a gratuitous private wire stretched between TINS
metropolis and some distant city. whether IL be
in direct rebate. made In some underhanded man
ner. of a portion Of the commission, or whether
il be in the demOraliZng form of presents 10 the
employees of other Stock Exchange houscs-one ana
all of these methods infrlngemenis OF our
and all such nfringements II discovered should
be punished as constitution provides. The
strength of chain is no greater than that oil us
weakest link. and If YOU separate the strands OF
mighty cable You soon reduce lis power 10 resist
any strain that may be put upon II. II is obvious
that our prosperity is largely dependent upon our
mutual good faith and trust. but II has come 10
the notice of the Governing Committee that pos
sible nfringements of our law have taken place
and are taking place al the present time. AZ their
meeting Yesterday therefore and with a view to
warning members of the penalties prescribed under
resolution was adopted by the Governors and
your presiding officer instructed TO read II 70
members OF the Exchange from this rostrum this
morning:
Resolved That the attention OF the members OF
the Exchange be called to the resolution adopted
1879 which is still in force that the Committee on
Commissions hereby authorized TO pay In their
discretion a reward not 10 exceed 5000 TO any
party or parties who shall furnish Information or
evidence which shall convict any member OF the
Stock Exchange Of violating the Commission law.