The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-12
STOCK EXCHANGE
SEATS ARE CHEAP
Price Indicates Lull in Finan-
cial Transactions
COFFEE TRADE UNEASY
New York Dealers Are Afraid That
Business Is to BE Taken Away
From Them by New Orleans.
Money Market s
COFFEE TRADE UNEASY
By PRESTON c. ADAMS

New York, June 11.-(Specia1.) --Stock
exchange seats vary in value nearly as
much as the securities the brokers deal
in. The price of seats is, in fact, pretty
good barometer of the condition of the
market. Last year, with brisk market
seats sold for $4,000 The last sale record
ed was $4,000, which Indicates a pretty
dull market. 1t has been, in fact, so dull
that there has been hardly living in 1t
for good many of the bankers.
There are $50 New York stock exchange
houses. OF these there are probably $50
houses which, to pay office expenses and
make per cent on the cost of their MEM
bership and the capital employed in the
business, must earn at least $4,000 a year
each. These are houses Of small capital
and low expenses, transacting for the
most part business for other members at
81 to $3.50 per 100 shares. They do, of
course. some business at the full COM
mission of $3.50 per 100 shares. Their
commissions might average ss,25 per 100
shares. To earn $1,000 year each they
would have to do combined gross bust
ness of about s9166 a day, which at the
commission averaging $6.25 per 100, would
mean 1866 shares. Every share of stock
reported on the tape as sold is also
bought, and two commissions are repre-
sented. There are probably 100 houses
which, to pay office expenses and make
& per cent on the capital invested would
have to earn $4,000 year each, or a COM
bned gross business of $4,000 day, which
at the same average commission of &c.
per 100 shares. would mean 10000 shares
of stock bought and sold, or $1,000 on the
tape.
Then there are probably 100 large houses
whose expenses are much larger who
maintain private wires and expensive Of
fees and who would have to earn an av-
erage of 100000 year each to do as well
as the smaller houses. Their commits
sions average higher, inasmuch as they
originate business outside. Their COM
missions would not average $3.50 per 100,
however as they give out great many
orders at 81 per 100 shares to other mem
bers. If their average commission was
$40 per 100 shares they would have to do
all together about 1888 shares day, or
1866 shares, as 1t would appear on the
tape, to earn their 100000 q year each
from commissions alone. So in the three
classes named are $50 stock exchange
houses, which would have to do each
day $4,000 shares between them, or $780,
GOO shares lone way as the tape records
the business, to make expenses and earn
per cent on their capital from commits
sions. There are 100 houses not accounted
for. Some of these are banking houses
not wholly or largely depending upon the
stock exchange business for income; 9TH
ers are houses not easily classified.
From these calculations it appears that
II brokers depended chiefly upon COM
missions for income, approximately 24O,-
900 shares of stock would have to be
bought and sold in a bona f1de manner
each day to pay their expenses and yield
them per cent on the capital invested.
But when. at the end of a day, there is.