Los Angeles herald., 1906-06-05
WILL BUILD BIG
STOCK EXCHANGE
LOCAL BROKERS WORKING UP
PROPOSITION
Plan Is to Erect office Structure in
Conjunction With Trading Pit
to Help Defray
Expenses

Members of the governing committee
of the Los Angeles stock exchange
have taken hold Of the proposition OF
erecting q new building for the ex-
change with a determination of carry
ing it out II such a thing is possible
Everything is still in a more or less
tentative shape, but the proposition
is under serious discussion and the
details are being gradually worked out
The plan which seems to meet with
most favor on the part of those having
the proposition in charge Is for the
exchange to secure possession of a
lot in the business district of the city
and then erect a building. Three or
four pieces Of property already are
under consideration. but the commit
tee is disposed to proceed slowly and
carefully before reaching a decision in
regard to a site. in order to secure as
many propositions from owners as
possible and to be in a position to Sc
lect the most advantageous one. The
site will have to be centrally situated.
One that would fully meet the pur-
poses Of the exchange is not easy to
find.
Financing Is Problem
The financing of the proposition also
presents some difficult problems. This
question has been the subject of con-
siderable discussion, but no plan that
seems to meet the approval of all the
members has yet been devised. One
suggestion is that the lot be secured
on a long term lease, say thirty or
forty years, and that bonds be issued
against it for funds with which to
erect the building.
1t is estimated that a building such
as the stock exchange wants to erect
would yield a revenue greatly in eX-
cess of the interest charges on the
bonds. as 1t would be situated i'm a
section of the city that commands the
highest rentals for business and office
purposes Those who favor this plan
say they are confident it could be
worked out satisfactorily and that
there would be no difficulty in dispos-
ing of the bonds on that basis.
The cash assets of the exchange are
somewhat limited. amounting at pres
ent only to about $350O. In addition
to this, however, 1t controls five mem
berships, which it is estimated are
worth at least $4,000.
Will Aid Toward Site
This amount would not go far
toward the erection of big office
building, but it probably would be suf-
ficient to secure the lease on the site
and afford a basis for a proposition
for an issue of bonds.
Inc outlook Tor the exchange never
was so promising as at present. In the
last year or two there has been a de-
cided improvement in the management
of its affairs, and from being looked
upon generally as an institution that
had little use for it's existence, it is
rapidly forging ahead to an influen-
tial position in the local business and
financial world
The present management is holding
the members to a strict account for all
their transactions, and II ders are as
sured of a Square deal so far as
it is within the power of the govern
ing committee and officers to do that
AS result of this the price of MEM
berships has been steadily advancing
1t is only a comparatively short time
ago that these were quoted around $500
and $400, while recent bids have been
as high as $4,000. The membership at
present is limited to fifty, and as
stated, five seats still remain in the
possession of the exchange.