The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-06-12
III MARKET IS
;|[[STREET CRY
I 1t Is Quiet Is Shown by
Price of Seats on the
Exchange.
1.-THE BAROMETER
In BUSINESS CIRCLES
ny a Living in 1t for a
Iood Many of the Stock
Brokers.
ny PRESTON g. ADAMS
,nsed Wire to The Tribune,

pfe,rn IBy Eh6OIoN ", EOAmp.
bis i, ,ased Wire to The Tribune,
'cas.R YORK, June 11.-Stock exchange
l,-. vary in value as much as the Sc
Tn IN the brokers deal in. The price
lss,,-.t rs is in fact pretty good barometer
ar condition OF the market Last year,
c,,. 4 brisk market. seats sold for s94,-
| -Ehe last sale was 5000, which in
do q pretty dull market, 1t has been,
"a 4 so dull that there has been hard
,u !, wing In It for a good many OF the
as
,.re are BOO New York Stock Ex-
!. houses, OF these there are prob
: $50 houses which, TO pay office
: les and make per cent on the cost
~ 7lr memberships and the capital en-
bsg IN the business. must earn at least
., n q year each. These are houses OF
capital and low expenses, transact
alssr ! the most part business for other
= Y ers at 81 TO 1925 per 100 shares,
anf 10, OF course. some business at the
OF S11mmission of $3.50 per hundred
Their commissions might aver
Se n;.26 per hundred shares. To earn
u q a year each they would have 10 do
11h1ned gross business OF about 1886
q. = which, at the commission aver
J. II \. &p 90 DCI ilCIuEcut "Outu lllCcii
d q shares. Every share Of stock re-
NJ aion the tape as sold is also bought,
'ozis NO commissions are represented.
th Ilare probably 100 houses which. to
igs fice expenses and make 8 per cent
- capital Invested. would have to
N 10000 q year each, or q combined
Il Nbusfness of $4,000 day, which, at
m me average commission of S6.25 per
HI Va shares. would mean 100000
. OF stock bought and sold, or $4,000
- tape.
!, y. h, About Large Houses.
IL u there are probably 100 large
fz. = whose expenses arc much larger,
n Maintain private wires and eXpen
"A ifices, and who would have TO earn
NJ wage OF 500. 900 year each TO do
uN IL as the smaller houses. Their
y, esions average higher. inasmuch as
-, originate business outside. Their
- ssions would not average s12.50 per
I'd, however. as they give out
many orders at 81 per hundred
ElIpmmission was $40 per hundred
IND they would have to do, all to-
1IUl, about 333,333 shares day. or 166,-
1api ares. as IT would appear on the
- 70 earn their 100000 a year each
v,h rommissions alone. So, in the three
,f5r houses which would have 10 do
Am, day $4,000 shares between them.
- 1000 shares "one way" as the tape
fhrs the business, to make expenses
\. Nm per cent on their capital from
!. = HBlons. There arc 100 houses not
- tied for, Some OF these are bank
: uses. not wholly or largely depend
~ - on the stock exchange business for
others are houses not easily
lgM Not Profitable Year.
n. q these calculations il appears that
RtHkers depended chiefly upon COM
MS for income, approximately 3i0.-
ares OF stock would have 10 be
n M and sold In a bona fide manner
lay to pay their expenses and yield
% 3 per cent on the capital invested.
~ hen, at the end of day. there is
.c- ID total of $50. 900 shares bought
Ibid that includes the business done
. mber traders, either for themselves
other brokers, at 81 a hundred
" Keeping of books on ii The pro-
~ OF total transactions contributed
sn,.g traders and which is of little or
II At to brokers Will vary with chang
7ases OF the market, but IL might
~ 5e through the year TO be one-half.
g there would have to be market
DUG shares, more or less. to indi-
i; hat brokers were doing 800. 900
~ q day. The year 1909 was a very
i - Btock exchange year, but trans
averaged only little more than
~ shares, and, II traders contrlbut-
e-half, there was left an average
p, and the commissions arising
tom could not have made that year
.tAtable one for them.
II|lI What the Facts Are.
simple facts that stock exchange
Lbs's worth $4,000 even In very dull
and that brokers continue to main
a kf3tenslve establishments and keep
" pE capital invested, prove that there
u1fe potential profit in the stock cN-
business. The explanation is
Ed y active stock exchange house does
fiy wholly upon commissions for
06Ee- AS custodians OF their clients
DIVES and as large borrowers OF funds
ance their clients speculations.
nUro %nat amounts 10 a banking busi-
V'.~ncn, IN the aggregate. is some
fnE enormous For instance, A house
loans during a year would aver
1o.oo0'0oO. might obtain the money
pen cent. and charge It's clients G
IlfiI Ent. In which case per cent. or
Y" 'p. would be profit.
sup Loans Are Many.
rTt would be an unusual, though by
sas an impossible, case. The loans
.-hc ve nmeo STOCK exchange houses run from
~ W. 10 sbo 100000 and the broker
uiy charges his customers higher
Ls than he pays. This will Sug-
, w Hnot possibilities there are in the
sAcnange business, when the pub
W carrying stocks. IT Is when the
neither trading so az 10 yield
nor carrying stocks" so as
IKE the interest account profitable,
a 6Drg STOCK exchange business does not
uWnlnat mas been moro the case since
of January last than at any pre-
. AT TINE since The beginning OF igOs
1W the decline In the price OF stock
SrS Coffee Traders Alarmed.
York coffee traders fear they are
GltEer OF having their business lake,
W rom them by New Orleans through
"a nahating freight rates. and have
~ tsseps 10 lay the matter before the
fhSs commerce commission II the
10 1HaS DO not furnish .ellef.
w Money Rate Higher.
E~ failure Of recent per cent ,nu-
,oans. The Indifferent success OF
" ~, tork ~ per cent Offering. the
6Se stssnatioD IN the bond depart
the securities marketB-thesc ana
'ecent developments IN nr rqucial
are responsible for a pel(sf. .uorp
general, that money rates arc ap-
m hs"g, VI they have not already
- dSae permanently higher level In
IA tlnt Investment circles there seoms
0stposltion TO challenge this belief so
wSe accompanying cond,tions remain
,e(<FPS arc. But interest rateg aro vnrv
y" l.tp ACTIVELY po ortIcIn,, -. r.,