The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-11-24
LOCAL STOCK EXCHANGE
FRICTION OVER THE TRADING BASIS
FIXED BY THE GOVERNORS.
Messrs. Sol Meyer and A. w. Thorn
son Seeking a Change-Consum-
ers' Gas Trust.

The Stock Exchange is somewhat shaken
by friction. Two brokers, Sol Meyer and
A. w. Thomson, have not been represented
this week and neither will be represented
until the trading basis is altered. The min
imum for stocks in trade on Change is
fixed at ten shares and for bonds, one,
valued at 1000. Both believe this basis
Is Impractical in making substantial mark
ct quotations.
issued yesterday morning. this firm said:
The local security market is practically
stagnant and but few transactions are re-
corded, Notwithstanding the sales recorded
by the new Indianapolis Stock Exchange.
While we are members of such exchange,
we are not in accord with some of the
, methods employed, and radical changes. in
our opinion, must be made before any
benefits will be derived by the investment
public. So far trades on the exchange have
been principally by brokers for their own
account, and do not represent public buy
ing or selling. Besides. the quotations
given out represent but the purchase or
sale of one bond or ten shares of stock.
and the public mind should not be in
t1uenced by trading of this character.
Whatever you do. do not be influenced
by present quotations"
Mr.. Thomson said yesterday that the
trading basis must be made fair for all or
ne would sell his membership. He says
the exchange should be open without dis
elimination. and that its membership
company representatives. He says the
policy or the exchange now is too narrow
The board of governors took notice of
the Meyer & Kiser letter yesterday at
noon, but took no action. II will be con-
sldered again at meeting tomorrow
President Wild said yesterday the chief
concern or the other members in reference
10 II was that 1t insinuated that the re-
ported sales were fictitious Mr.. Wild said
this was undoubtedly an unjust insinuation
Mr.. Meyer says too many sales have been
q ooLf rnOr at~fn 20
sonable stock dealers to misrepresent their
character. He also says there have been
wash sales for the purpose of creating
fictitious market. These sales are made
by understandings between brokers who
are promoting special lines, and involve no
financial responsibility, except, perhaps,
an exchange of securities.
Other members who are not disposed to
believe everything they hear say the ex-
change is undergoing in its early stages
the trials that must sooner or later be I'M
dergone by all like associations. The New
York basis of trading is one hundred
shares. Less than that number involve a
premium. In Chicago twenty-five shares
Is the minimum, II is said. The Indianapo-
lis market has not the volume for such
basis and the minimum fixed here was pro-
portionate to the anticipated business. Mr.
and five bonds. Mr.. Thomson thinks only
sales on Change should be used to make
the market. Most of the other members
believe the present basis is fair until a
better one can be demonstrated Friction
now, IL resulting in reaching an amicable
new basis, will strengthen the exchange,
II Is believed by all.
Consumers Gas Trust is not forgotten in
the talk among exchange members They
say 1t is really at the bottom of the fric-
ton because the exchange bulling of 1t
uncovered design and produced clamor
from lamb or two. A transaction in Gas
Trust. about which the stories differ widely
outside the exchange, Is said to have been
the wedge that made the breach. The two
brokers who are rebelling say others have
used the exchange to exploit their own
lines. The result of the conflict Is expect
ed to be a free washing of linen and a re-
vision of the rules in some respects and
perhaps widening OF the membership
There were no sales yesterday The
prices on Change were:
STOCKS