Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1903-04-18
WAYS AND MEANS

Mar fallacy Not only do outsiders
nav the expenses of the organization,
but they pay the salaries Of officers
and committee men az well. The money
comes from three different sources;
fret before any stock or bond may be
dealt I'm on the floor Of the exchange,
the corporation issuing II must make
written application 90 the committee
AN listed securities II the corpora
tiop is WILING To- submit 10 an inYestl-
pafion regarding its financial standing,
and "a shaU be found tO have been IN
solvent existence for az least one year
and n its securities are estimated 10
be Of sufficient importance ln tIe lliian-
cial world to add to the business OF we
exchange they are listed ana may oe
dealt In on the floor OF t1e eNchahge'
If @ corporation declines 20 maize lhe
abatement required, iIs tocNs a,n
placed ON the trade list as unlisted
securities The amount paid by % cor
poratlon for the privilege OF helng per
mltted 10 have ms securities dealt m
on the floor. is an annual fee OF sou iof
every million dollars OF the par NaIue
OF the securities admitted 20 the trace
privilege. In round figures the secuIi-
Ties "caled' on the floor oI the eN-
change aggregate as follows
Railroad stocks $500 100000 rail-
boad bonds. 5000 100000; miscellane-
ans stocks. $500 600 600: miscellane-
ans bonds. SjOOOO00O0, Or a total OF
si9 500 600 600. This would yield $780,
00O per year to support the exchange.
The telegraph companies have the
privilege of reporting transactions on
he hoard 10 members and out-of-toWn
contributors and there Is scarcely
citv If Importance where some bucket
anon or brokerage house does not pay
liberallv for these reports ana IL Is
fair 10 assume that the exchange de-
riyps large income from this source
The company owning the ticker tran-
chIses I'm general use, by brokers ana
koepers of public resorts charge from
sIO 10 S25 per month for each instru-
ment and divide q considerable portion
~ the proceeds with the exchange
THESE sources of income. listed securl-
Ties. telegraph and ticker franchises
WELD revenue estimated at SSVOVoO
per year ,
The president Of the exchange is paid
s5 900 per year, as is also the secre-
tarv and members Of the different
committees are paid a few hundred dol-
lars per year -.
The corporation received It's charter
nj Albany. IN 1858, as THE New YORK
stock Exchange Building Company
and was created for the sole purpose
of supplying medium IN which might
be vested the title of all real property
owned by the exchange, and Is the eX-
changes legal self. having a recognized
standing i'm law. II has an authorized
canital Of $3.50 900 with 700 shares OF
the par vaue.of $500 each, only SZao,-
600 OF the stock has been issued, the
remainder being held In the treasury
It's assets year ago were stated ny we
president 20 be $1,000 600 but win the
of additional property
and the construction Of the new puild-
ing. probably $1,000 5000 would be low
estimate Of its assets.
Moth. X puzzles the average cut
slider more constantly than ne publich.
ton OF names Of buyers or sellers OF
stock on the exchange yet use OF
brokers' names Is very much more than
mere guess work, for as a rule large
ananclers or spectators employ GER
tain brokers to execute their orders.
so that Il comes there are brokers on
the stock exchange who generally
come TO he regarded as brokers for
certain large interests The broker
himself will engage other brokers 10
do the work on the board and en-
deayor by thus distributing business to
disguise the source from which the
orders emanated These secondary
brokers' Of course, know who engages
their services. and they draw their own
differences and impart them 70 their
friends, and before long the whole
Wall street district has the story that
such and such interests are buying or
selling particular stocks. Even With
out this form Of leakage brokers are
Obliged 10 employ clerks who have very
intimate friends, and IN this manner
information goes through the whole
street II frequently happens that OPP
orators who want 20 attract the public
and distribute stock az high prices,
find It impossible 10 utilize these condi-
tons. They win employ brokers really
identified with leading operations, and
have Wdiciously circulated items pub
lished by the news agencies and num-
berless financial publications In the
Wall Street district. Still there are a
certain class of spectators who, on
general principles, take the opposite
side from any tips distributed on the
street. and, for a matter OF fact such
operators generally come out ahead IN
the game as they take II for granted
that tips are distributed I'm order 20
accomplish certain purposes,
The loan crowd on the stock eX-
4