El Paso herald. (El Paso, Tex.) 1901-1931, 1911-02-27

posite what is now so Wall street, and
signed an agreement to charge uni
for rates of commission This docu-
ment is still in existence, and marks
the founding of the New York Stock
exchange. Meetings were thereafter
held internationally as occasion de-
manded at the old Tontine Coffee
house. corner Wall and Water streets.
But it was not until 1917 that a for
NAL and permanent organization was
effected on substantially present lines.
The first regular board room was the
Merchants exchange. In 1853 the Or
ganization removed to the corner of
Beaver and Wall streets. and finally
in 1855 took possession of the present
site on Broad street, where the build
ing underwent successive additions and
alterations until the present mag1if1-
cent structure was erected.
Millions Change Hands Daily.
In the course OF an average days
trading in an active market on the
New York Stock exchange 100000
shares Of stocks may change hands.
These at their par value of $1OO per
share represent total value of $780,
100000. But on single momentous days,
as in the financial furry of 1907, or
during the Northern Pacific squeeze
on Black Monday in 1903. the total
transactions have mounted as high as
100000 shares. In 1910, a normal year,
the aggregate sales footed up nearly
$500 900, 900.
Strange to say, the New York Stock
exchange is not Incorporated, being a
strictly voluntary association governed
by regular constitution and bylaws.
1t is directed by a president. vice presl-
dent, treasurer, secretary and by
board of governors consisting OF 40
men. The membership is now HOO,
Seats" or memberships pass by sale
or transfer, and may be bequeathed in
case of death. The price of seats fluc-
tuates seemingly in distinct ratio with
the total yearly transactions of the
exchange itself. The highest price was
touched in 1909, when $4,000 was paid,
but seats were sold as low as $4,000
in 1901, and $4,000 in 1900. In 1925
the initiation fee was SO. It is now
$1,000. A purchaser of seat must be
approved by a committee on admis-
sions, and a most rigid standardN or
business probity is demanded. In case
a member fails or defaults or is .'sold
out" his seat may be sold for the bene-
fit of the creditors The annual dues
are only $50, with a death assessment
OF $40 on every surviving member, this
latter sum going to form a fund from
which $4,000 life insurance is paid
to heirs of deceased members.
What Visitors May See
Visitors with passes are admitted
TO the gallery, and from this vantage
point may look down on a yelling. dis
heveled and apparently crazy mass of
no ic
confusion seemingly inextricable. Yet
there is order in all this chaos At
one end is the cltairman's rostrum,
from which he calls the exchange to |
order and announces the opening Of !
business at 10 a. m. each working day 7
and declares the sessions closed at 3 !
p. m. From this rostrum notices are !
read concerning admissions. deaths, !
failures or other formal communica-
lions. Up to 1875 the whole list Of !
stocks was regularly called" from :
this rostrum several times daily, thus
giving opportunities for quotations and ]
bids. But the system proved too cum !
brous and was ultimately abandoned !
Around the main floor runs a stout 1
steel railing, with openings at inter- /
vals- Within the space thus enclosed !
are desks and telephones for clerks I
belonging to brokerage houses, this 4
y
space beyond the railing is sacred TO j
members of the exchange. Woe bet.de (
the unhappy outsider who eludes the !
and Wanders upon the I
floor. The instant he is spied a crowd ;
of brokers. yelling like Comanche =
braves, will surround him, His haty
will be damned over his eyes. his
clothes torn to ribbons, as he is tosse
and hustled from group to group and !
fir7c1 1x- int = h.
hatless, dazed ard GREATNESS. Nor are /
the members more merciful to their
own kind when initiating a new mem
Der or making war upon the offending
straw hats which are taboo after Sep
TENDER l. At such times the fun is
fast and furious
Always Ready to Start Something.
There is always a fun-loving or
sporty" contingent in the exchange
who cam be relied upon to start some
thing whenever business is slick This
Is especially the case on Christmas and !.
New Years ewes, when a mild species
Of carnival takes place on the floor
with perhaps a grOtesque procession
Or some bizarre ceremony, at which
the governors wisely wink Another
feature of the Christmastide celebra-
ton is the Christmas box for the ex-
change employees. to which members
royalty IN good times ana
bad, the amount for distribution run
hing well into the thousands. giving
% each employe a handsome bonus.
Despite the deafening uproar ano ap-
parent confusion, business on the floor
II the stock exchange is really con-
lucted in an orderly manner and ac-
,ording to strict rules. The vast arena
s studded with iron posts bearing the
James Of leading stocks, such as Erie"
Steel" 'Lackawanna. Pennsylvania"
N. Y. Central" In other places or
corners some particular security viii
'e regularly dealt in. Transactions be-
ween buyer and seller are thus in
-ariably made in the particular crowd"
md in the presence of perhaps a hun J
ired other brokers dealing in the same
tock The first bid or offer has pri-
,rity until superseded by a higher or
eldom occur. Sometimes the broker
ave different modes OF making their
ids known-by an outflung hand. by
pening the fingers, or by voices alone.
'hese peculiarities become as well
,nown as the mans features. Disputes
edo moccur. Sometimes the broker
rusts to his marvellous memory, but
more often he scriboles a few cabalistic