Los Angeles herald., 1910-10-13
NEWS OF THE MINES
BOOM DAYS START
CALIFORNIA OIL STOCKS
Brisk Trading on Los Angeles Ex-
change Indicates Season
Will Be Profitable

The amount of trading on the Los
Angeles stock exchange shows that oil
stocks are becoming more active every
day. With the sharp gains in Union
and Mexican issues, the excitement on
the floor of the Los Angeles exchange
has been intense. So many visitors
are crowding around the pit that there
is scarcely standing room, and it looks
like the boom days of last winter and
spring.
Very few of those on the floor come
out of idle curiosity, as nearly all are
interested in the market" bull,
or rising market always causes more
interest or excitement than bear, or
a weak market. Union Oil in the last
few days. has gained nearly SO share,
and Mexican Petroleum limited COM
mon has advanced more than $40 q
share The already large business of
the exchange has increased by leaps
and bounds in the past ten days.
The Los Angeles stock exchange was
formed in this city sixteen years ago.
and is one of the Oldest stock eX-
changes in the west. There have been
five other exchanges in this city, put
the present exchange has absorbed
them all. The membership of the eX-
change now is sixty-nine, and there IS
but one seat left unsold in the treas
ury. The seats at the present time are
valued at about $2500.
'I have often been asked said l..
r. Parson, manager of the exchange
yesterday, "the question, What is
stock exchanged? Especially through
out the west have I heard this as
there are so many residents from the
middle west who have settled in Los
Angeles and have never resided in any
of the large eastern centers where the
stock exchange is well known.
IAN exchange is formed to concen-
trate, systematic and facilitate tne
business that always is carried on IN
every large financial center, IN an
classes of what is known as collateral
securities. 1t is not an organization
for profit, as the exchange as an ex-
change does not make any money. Ihe
members nav so much for a member
ship known in financial circles as
seat This membership entities man
to all of the floor privileges and pr1-
vate telephone and telegraphlo servs,
ice. The members pay certain hXeu
dues which provide for the running
expenses of the institution.
"a broker must make his word goou
IN either his customer or fellow broker,
or. according to the drastic rules, lose
his membership. In this way the ex-
change protects the buying public, for
can it's credit and integrity be estao-
lished. 80,
"The exchange protects the public,
in that it requires the stock traded
in over it's boards to be listed. In
order that a company may nave lls
stocks or bonds traded on the moor
If must undergo a thorough examina-
tion Even after it Is listed, the ex-
change can call upon a company at
any time for statement as to It's
condition. Therefore, the public can
procure at any time from the records
of the exchange information regard
ing listed stocks.
"By the establishment Of an ex-
change the investor is enabled to keep
track of his investment and the buy
ing public is protected from paying
prices for stock that it might be forced
10 nav were there no exchange to give
publicity to the stocks.
'The exchange also requires It's mem
bers to abide by fixed commission
IF a member deviates from this rule
he is liable to expulsion from the eX-
change. This protects the public from
exorbitant charges
an the first nine months of this year
S1OO 900 worth of new securltles
have been listed on the exchange. This
brings the total amount of listed Sc
curities to about 295,000000. A re-
hardly be euualed by any exchange in
the country is that the average rate
of dividends for the entire list is per
cent a year.
"I,ast year the total amount of busi-
ness done on the floor of the Los An
geles stock exchange was $634o, ,O25.O3.
For the first nine months of this year
the total business amounted 10 $S'zzf'-
163.0 and my prediction that the ex-
change will do more than $1o,OOO,OOo
worth of business for the year 1910 un-
doubtedly will prove more than true,
as the market is more active than AN
shares changed hands through the me-
dium of the exchange"
]. B. Neville is president; Fielding
]. Stilson, first vice president; Joseph
RalI. second vice president; D. A. Nc
Gilvray, secretary; D. C. Sullivan,
treasurer and L. F. Parsons, manager
and assistant secretary of the Los An
geles stock exchange.
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