Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-10-13
BROKERS IN NAME
STOCK EXCHANGES RICHEST
MEMBERS NEVER VISIT IT.
They Don't Buy and Sell for Others,
but Their Membership Obtains Cut
Commissions for Them.
From the New York Sun.

A visitor to the gallery Of the stock ex-
change last week asked a man who was
watching the antics of the steel crowd to
point out John D. Rockefeller. The man
told the visitor that Mr.. Rockefeller was
not member Of the exchange. but he made
a mistake. John D. Rockefeller is a men,
Der of the exchange. So also Is William
Rockefeller. There are a score of promi-
nent financiers who hold memberships, but
never appear on the exchange floor.
John D. Rockefeller Joined tine exchange
in March, 1888. and William Rockefeller in
February, 1852. A member Of the board
since the COS was asked II he had ever
seen either on the floor. He thought he
recalled the introduction of John D. Rookie
Teller to the chairman, fOrmality through
which all new members must 60
The Rockefeller seats must have been
bought for about $1,000 or $500, the pre-
vailing prices when they joined the body.
Since neither of the Standard Oil men
executes commissions the floor as a
broker. 1t might be thought that the seats
have no value to them. AS members of the
exchange they are, however, able to trans
act business through their fellow members
at reduced rates-$2 a hundred shares If
they clear the stocks in their own names.
or S325 a hundred if they clear through
others.
Heavy Dealings.
William Rockefeller is credited by Wall
street with dealings which at times run
into hundreds of thousands Of shares daily
If he exercises his privilege as a member he
can save $4,000 on the purchase and sale
of 100000 shares. 1t would cost him 81 900
instead of $4,000.
But although the holders may get reduced
commissions, it is probable that the biggest
increment of gain in the ownership OF the
seats has been the great rise in their value.
Seats have sold this year as high as $50 900.
George Gould is also member of the ex-
change, which he Joined in February, 1885.
Mr.. Gould. like his fellow member, E. II.
Hartman. who was admitted in 1870 is far
too busy looking after the welfare of the
great western railroad system bearing his
name to sell and buy stocks for Other& on
the floor of the exchange. The street cred
its each man with heavy transactions in
stocks on which they undoubtedly save
part in commissions through their member
members only by reputation and would
probably pass unrecognized by ninety out
of each hundred active brokers should they
take fancy to visit the floor.
Gould, Belmont, Sage.
Mr.. Goulds brothers Edwin and Howard
are also members of the exchange, having
Joined in 1888 and 1898. respectively They
have never transacted business on the floor
nor has August Belmont, who was elected
to membership in March, 1888. Among the
other well-knOwn members who never per-
sonally exercise their privileges are J. Pier
pont Morgan. jr., Thomas F. Ryan, George
Croker, Edwin Hawley. Brayton Ives
president of the Metropolitan Trust Com
pany; Henry c. Swords, president of the
Real Estate Trust Company; George F.
Baker. jr.. Henry K. McHarg, Mortimer L.
Schiff and Henry Clews.
The dean of Wall street Russell Sage Is
also member of the exchange. He Joined
1t In January. 1874, when the price of seats
was low Long ago Mr.. Sage gave up his
place in the floor foot ball game to younger
men, but his seat is worth it's price to him
in cutting down commissions.
To all these inactive stock exchange mem
bers the lonS-held seats have been anything
but loss. In most cases the seat as an in
VeStment has proved itself in the same class
with Manhattan real estate and is even
more quickly disposed of in case of neces-
sity. In each case there has been present
the opportunity TO save commissions. even
when another broker did the work
And as a last resort to a shipwrecked
hnancier the membership If he could re-
tain 1t in the crash, would prove a haven of
shelter.
The Little Exchange.
The consolidated stock exchange or the
little exchange" as 1t Is known In Wall
street, has nearly as imposing an array of
inactive members as its greater neighbor
The Standard OIL interests are represented
by Henry H. Rogers. John D. Archbold and
8. c. 7. Dodd, all of whom Joined the ex-
change in the sos when it was known as
the petroleum exchange, and when the Oil
fever was at It's height. They still retain
their memberships. as do many other now
prominent men who became members in
the same years.
Other members to whom the uracept oap-
Grafton points with pride are Justices David
Leventritt and Henry A. Gildersleeye of the
supreme court. Justice Leventritt Joined
in 1884 and Justice Gildersleeye in 1887.
Anthony n. Brady, who began his business
career as an Albany grocer to become in
time the promoter and part owner of most
of the big electric and gas lighting COM
panies of the country even extending his
operations to France and Japan was ad-
mitted to membership in 1887 and Is still
enrolled.
Gould Representatives.
0. D. Shea. chairman of George Gould's
Missouri Pacific system, and director for
years in other Gould properties. Joined the
consolidated exchange in 1877, and his
step was followed by A. Fl. Calef, another
well known representative of the Goulds
Peter f. Myer, who gained more or less
celebrity Richard Croker's real estate
partner and henchman, was initiated in
1885
The little exchange" boasts a number
of bank presidents. These include Charles
w. Morse of the National Bank of North
America and the chain of financial institu-
tons which 1t controls: Valentine P Sny-
der, president of the new Bank of Com
merce, the second largest bank in the city:
Dumont Clarke. president Of the American
Exchange; John E. Borne, president of the
Colonial Trust Company; Julian D. Fair
child of the Kings County Trust COMPANY
and Dick 8. Ramsay of the Eastern Trust
Company.
The membership includes many other
prominent men, nearly all Of whom OBJ
tanned memberships In the great oil boom
when trading on this exchange was given
over entirely to oil certificates. They have
been inactive for years. so far as the floor
Is concerned. but retain their memberships
as Investments or for other reasons, per-