Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-06-14
ATTORNEY NYE'S OPINION
Trading In Whining stocks-New """ru
Leads In the number OF shares
sold.
TODAYS METALS;
SILVER COZ
LEAD, Sh25
CASTING COPPER, 1871

For some time past It has boon
question ln the minds of stock brokorH'
whether they, ua mcmuora of thc exc
change. "a licensed corporation. were TO-
quifud 10 pay Individual licences 90
carry on the business oi buying and
eclling stocks. 10 determine this
polnt the salt Lake Exchange decided
10 consult legal authority, resulting Ia
the subioIned opinion, delivered by
Attorney George J.. Nyc and submitted
to the members In open session this
morning. II concludes that the pay
mont Of a license. either municipal
state or national by the exchange. does
not license ita individual mcmbcra,'
and h Ia full as follows
Major J. L. jackson. President SAT-
Lake stock and Mining Exchange
city.
Dear sir-Rcplying % your request
for on opinion as 10 whether ur not tho
payment OF a license by the salt Lake
Stock and Mining Exchange" "a corpor-
ntioln. licenses the Individual members,
permit me 90 say. 1 have examined lhu
ci.y ordinance ~ December u, lht',
copy Of which I enclose. ana % ape
pears 90 be- regular and legal, such an
ordnance ~ fully authorised under me
etntutea OF this State granting power
60 license. tn cities.
A recent and very well considered case
IN Illinois holds similar statutes, and
a like ordinance under them, cunHtltu-
uonnl and valid. Many authurltlca are
cited and I believe the case mentioned
oxprcssca the decided law today
ID ~ held in the same case, 'that
81 d. J..
and sell stocks, bonds or other secure
ties on the door OF the exchange In their
own name and make or receive delivery
and payment In the execution of orders
Tor customers. are liable Co license
charge" This was Ia connection with
the question as 10 who were brokers.
The Salt Lake city ordinance re-
fcrred IN says. Sec. Il 1T shall d. un-
lawful Tor any person, arm or corpnr-
alton 10 engage IN or carry ON the busi-
ness, trade OF profession uf buying ana
selling stocks. within the corporate lim-
~ ~ Salt Lake city. without first hav-
Ing obtained a license therefor, aa here
IN provided"
II IL a we'll known and almost cic-
mcntary rule % statutory conatruc-
ti0n that unless the subject mat
ter Indicates that they are used
IN n technical sense. words or
phrases are to be- considered
as used IN their popular and common
acccptaton." The section NJ the or
dinnnce referred 60. clearly will admit
of but one Interpretation, ana that ~
the plain, everyday meaning ui the
language used
Having reached the conclusion that
every person. firm or corporation deal
ing In stocks must pay "a license, we
next come Co tho question. Dr. the salt
Lake Exchange a corporation enEnEod
IN the business " huying and selling
stocks within the meaning ~ the or
dinancr so that a. license TO ~ would
license IT, members
In the nrFt place. the Exchange, mo-
! understand %. b. not engaged lu the
business % buying and selling stocks
II simply nCts us a. medium through
which ~ Individual members buy and
cell on their own private ana personal
account Applying the tHyt of profit
and loss wp nnd tho Exchange 90 no
richer because % the dealings NJ Broker
a. ana bears no part % Broker BIS
losses.
In no sense Of the word and without
q forced construction could the Ike
change be- considered AZ corporation
engaged lu buying and selling stocks.
II lacks the essential elements ~
making or receiving delivery AMI pay
mcnp IN stock transactions, This lH
equally true II II has its own clearing
house. because again il Is but me
dium.
doubt the legality of'thc Impose
ton Of a license charge on tho Ike
change under the ordinance In qucH-
tion.
II is equally clear 7 think. that a
person, ilrm nr corporation dealing, as
huch, IN stocks for profit, whether on
the Exchange or ON the curb, must have
n license therefor Apply the rule 20
your own corporation. Take for cNam-
pie the corporation uf y a CO., Brook
erH, q member M the salt Lake EN-
change, I presume there uro such. X
q Co. buy scat on the exchange, that
does not cntltle each individual meme
Der OF the corporation ~ X q GO. 90 o.
seat n they would become members
Of the exchange without buying "a
seat, they would Htill be- without the
privilege ~ dealing ON the exchange,
The exchange says they must have o.
scat before dealing thcrg. the city says
they must have a license before deal
inr NJ ALL
What ] have said above applies with
equal force 90 subdivision . M section
2 Of the act OF Congress entitled AN
net TO provide wuys and means Co meet
war expenditures. and Cor other pur-
poses which is as follows.
brokers shall pay $50, Every per-
son, Ntm or company whose DuHlu'FH N
n 90 negotiate purchases or sales NJ
stocks, bonds. exchanges, bullion coin
money, bank notes, prumIs8ory notes or
other securities Tor themselves or
others, shall De regarded ng o. broker
provided that any person having paid
the special tax na q banker shall not
be required 10 pay tho special tax us a
broker"
The essential element IN this section
al ia HHs de
language, ~ still the purchase or sal,
and 1.-THE making or receiving delivery
and payment"
My conclusion ls IN. tho payment
N licenHo. either municipal, state ui
national, boy the exchange docs not %,
ccnse les Individual members.
N this does not cover the full soopi
~ your inquiry I shall be pleased I,
20 into any other feature or detail
which may suggest itself to you. Yer!
truly yours GEO, l., NiE.