Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1899-11-22
REFORM ON Change
Sweeping Changes in Methods APP
piled to Transactions on Board
of Trade.
Crusade Against Bucket Shopping
Results in New Policy For
the Brokers.
All Orders Must Be Actually Exc.
cuted in the -Today's
Quotations.

Chicago, Nov. 22-Sweeping reforms
in the methods to be applied to bust
ness transactions by members Of the
board of trade were instituted yester-
day afternoon at a meeting of the di-
rectory. The crusade against bucket
shopping" resulted in the adoption of
two resolutions outlining the policy of
the directors and explaining the I'M
as regards various lines of trade which
have been inveighed against in the past
by a majority of the brokers. Gross
trading" and the .sknning" and
matching" of orders is to be prohib-
| tied. ALI orders for trades must be
regularly consummated in the market.
This Will, 1T is expected, increase the
volume of trade at least 25 per cent and
| fluctuations.
The abolition of the system of cross
ing orders means that every order
placed with a commission house will be
placed in the pit The SPECTATOR,
whether he be buyer or seller, will be
forced to abide by the laws of chance in
the placing of his order. He will also
get the benefit of the effect on the
market which his trade naturally
would have. Every trade affects the
market to a greater or lesser extent,
and the man behind the deal calculates
on the effect of his trade in making his
speculations. If his order is crossed"
it does not get out of the commission
house With which 1t is placed. and no
one but himself and his brokers know
that he has such deal ON foot.
The crossing" of orders is explained
in this wise: If, for instance, man in
st. Louis orders local commission
house TO buy for him an order of wheat
at certain price, and his brokers find
they have an order to sell in like
amount at the same price from a man
in St. Paul the st. Louis man is given
the st. Paul mans >holding without
either being bought or sold on change.
Both spectators are deprived of the
opportunity 10 get a better price than
the limit they set and both are also de-
MED the effect both trades would have
ON the market Were the orders regular
~ placed in the pit
The following resolutions We're adopt
ed by the directory yesterday after
noon:
No member Of this association shall
act as agent for the employee of another
member in any transaction in which
the name of the employer of such en-
plcye appears.
The second resolution relating to the
prevention of bucket shopping" was
adopted in the following form:
NO member OF this association is
allowed under any circumstances TO be
both principal and agent in any trans
action for future delivery of any Of the
commodities dealt in under the rules OF
this board.
Furthermore. no member of this as
sociatlon, in any TRANSACTION for future
delivery of any OF the commodities
dealt in under the rules Of this board,
shall allow himself directly or Indirect
~ either by his own act or by the act
of an employee or of a broker 10 be
placed in the position of agent for both
buyer and seller
There seems to be an exceptionally
strong sentiment among members 0.
the board 10 revive the old style of
trading TO a great extent In years past
each large firm was represented by one
of the partners in the pit. This bust
ness is nov all done through employees,
(which permits Of the SHINING" of the
Iorders 1t Is thought that if RESPONSE
Bile heads. of the firms would pay more
attention to the actual transaction of
Du change many pf he re-
forms at present being attempted
would be brought about by this change
! in the method of doing business.
The bucket-shop" committee made
charges against 4. r. Jones & Co. for
alleged Illegal trading.
The report ON McLain Bros & Co
stated that the Investigation could not
be completed until after the charges
tpreferred by federal authorities have
been tried.