Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-06-12
RUSSIAN STOCK EXCHANGE.
Each Member of 1t Must Be Russian
Subject.

The st. Petersburg Stock exchange
| is even more of an exclusive club than
| the Paris Bourse, whose membership
| is limited TO 20. as compared with the
| 100 members of the New York Stock
Exchange and the 500 brokers and
jobbers who operate on the London
Stock Exchange.
There are but Sc authorized brokers
on the St. Petersburg exchange. Each
one of them must be a Russian sub
iect, and must pay a deposit of $1,000
rubles. The right TO deal on the ex-
change is not, however restricted to
these official brokers, except in regard
to the government department
Any person properly introduced by
broker or by recognized Russian
banker may enter the exchange and
do business with the brokers there.
These persons must pay a small semi
annual subscription to the committee
of the exchange for this privilege.
which may be withdrawn if they fail
to carry out their legitimate transac-
tons.
Any broker or banker may introduce
stranger for one days trading by
registering the strangers name in the
porter's book and paying fee of one
ruble, just as the privilege of social
club may be granted for a day to
visitor.
The banks also deal in bonds and
stocks as we'll as finance new and ex-
listing companies. About 500 securities,
practically all Russian, are dealt in on
the St. Petersburg exchange. Dealing
in government securities is a mo-
nopoly of the official brokers, but as
so large an amount of the government
debt is held in France and is traded in
on the Paris Bourse there is no great
activity in governments at St. Peters
burg.
The most active part of the market
is in railway and bank shares. The
foreign exchange market is absolutely
controlled by the state bank, and Rus
sian brokers are therefore deprived of
what in other capitals is a profitable
feature of the brokerage business.
The variety of securities known in
England and America is unknown in
Russia. There are no convertibles, in
come bonds or things like that, and
shares are practically all common or.
ordinary.
By law all shares must be regis
tered, but special ukases or DEGREES
have allowed the creation of shares
payable to bearer and of preference
shares. Formerly a special kind of
stock known as founders shares ex-
listed, but these are disappearing. Pro-
moters of a new company are not al
lowed to take more than e-fifth OF
the shares of the company. The Off
cial list of securities quoted on the
exchange is printed daily in French
and Russian.
There is no transfer tax on securi-
ties, but the capital of companies is
taxed at formation and there is
regular corporation tax similar to that
recently enacted in America, the
companies being required to pay s
per cent on the net earnings. All
limited companies must have the gov
eminent authorization, the general
corporation law being not very unlike
in principle to the Federal incorpora-
ton law which has been proposed in
the United states.
The law is quite strict, providing
among other things that the share
capital must be fully subscribed and
40 per cent. paid up. Bonds cannot be
issued for more than half the paid up
capital nor without the express au-
| thority of the government granted af-
I ter inquiry into the security offered.
| All the assets of the present and
| future are liable for the payment of
the bonds, which must be registered
as gages.-Moody's Magazine.