Evening star., 1903-07-18

over it calls for full annual reports. The
requirements of the exchange are really
very rigid, although contrary opinion has
sometimes been expressed. The exchange
has, indeed unlisted department; that is
to say it admits to dealings on the floor
certain securities, mostly those Of industrial
companies. which are not subject to the re-
quirements Of listed stocks and bonds. Bat
unlisted securities labor under some lrr-
pOrtant disadvantages in the street. For in
stance. the banks will not loan upon them
as freely upon listed securities, and
when they do accept them as collateral (Sa-
cUrityl commonly charge higher rates of
interest. The large majority of the STOCKS
and bonds traded in of the listed class
The exchange does not guarantee the value
of any security traded in on its floor but
It does endeavor to protect the public us
far as possible from investments in worth
less or fraudulent securities. 1t affords no
small degree of publicity.
The Membership.
Such is the Stock Exchange system Now
for some account of it's membership. or
ganization and building 1t is composed of
LOO members. only about half of whom
act directly agents or brokers' for in
Vestors and speculators. There are many
large capitalists who have Joined the ex-
change but never enter it, They get the
advantage, as members. of having their or
ders executed 1T much less than the rate of
commission charged outsiders. Still il
must not lie supposed that all the great
men of Wall street are members of the
Stock Exchange. j. flerpont Morgan. ia
cob ii. Schff and James Speyer. the three
largest private bankers are not members
James K. keene. most noted speculator
l. not member. John -. Rockefeller
George j. Gould and r.. ii. Hartman are
members.
The membership is composed of commits
sion brokers-that is men who act as agents
for the public in the buying and selling of
~ dol la -hr,
i'erS who do business for other members at
- Per loo shares. and room traders who
tUy and sell for their own account alone
The membership has been for many years
limited TO LOO. and the number is always
full- Some one must die or retire in order
That new member may be elected. Stock
exchange seats. therefore, are very val
liable. The word seat is commonly ap-
rlcd to a membership. although in fact
there are few seats in the board room. The
term Is an Inheritance from old days when
brokers did occupy seats like members of
the legislature. When member retireS or
dies his seat is sold for the benefit of him
self or family. The prices of seats vary in
different years In the dull times of 1896
th"y sold us low as $1,000. Early this year
there We're sales as high as SSl O1o. At that
rate the l 100 memberships had an agere-
gate value of $S,uUoco Recently the price
declined TO $1,000.
Members Commissions.
The members are restricted to certain
specified rates OF commission. The regular
charge for non members is one-eighth of
per cent. which amounts to $3.50 for 100
shares. Members may execute orders for
other members who do not give up the
name OF their principals at one thirty-sec-
ond of l per cent and for those giving up
the names of their principals at one-fftieth
OF per cent.
The exchange is unincorporated but finds
10 difficulty III transacting its business un-
der such conditions. 1t Is governed by a
president and governing committee, elected
by the members. but exercising almost alb
solute powers, like the directors of corpo-
ration. This form OF government has ex-
listed since 1859. and has worked admirably
to the satisfaction of all members
The New Building.
In April of this year the exchange moved
into its new building. erected on the site of
its former building but enlarged by the
purchase Of adjoining property. The land
and structure represent value of $s,-
100000. 1t Is one of the few buildings in
the Wall street district devoted exclusively
10 one purpose and one tenant Architec-
tu-ally. II Is one Of the most attractive
buildings IN the city. But there has been
40 sacrifice Of utility to art. The great
board room is 13S feet long by l12 feet
wide. and is 50 feet high. No other SINH
la. roOla IS 20 well lighted There are