Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1911-06-13
RUSSIAN STOCK EXCHANGE.
Fifty-Si Authorized Brokers Do
Business.

The St Petersburg stock exchange
is even more of an exclusive club than
the Paris bourse, whose membership is
limited to seventy. as compared with
the LOO members of the New York
stock exchange and the 5000 brokers
and jobbers who operate on the London
stock exchange.
There are but fifty-siX authorized
brokers on the ST. Petersburg exchange
Each one of them must be Russian
subject, and must pay a deposit of 49,
900 rubles. The right to deal on the
exchange is not, however. restricted TO
these official brokers, except in regard
TO the government debt
Any person properly introduced by a
broker or by a recognized Russian
banker may enter the exchange and do
business with the brokers there. These
persons must pay small semi annual
subscription TO the committee OF the
exchange for this privilege. which may
/ be withdrawn if they fail 10 carry out
their legitimate transactions
Any broker or banker may introduce
a stranger for one days trading by
registering the strangers name in the
porter's book and paying a fee of one
ruble, just as the privilege of a social
club may be granted for a day to a
visitor
The banks also deal in bonds and
stocks as well as finance new and ex-
listing companies. Adult 500 securities.
practically all Russian, are dealt in on
the st. Petersburg exchange Dealing
in government securities is a monopoly
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 not great activi-
~ in governments at ST. Petersburg
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 profitable
feature of the brokerage business. The |
variety of securities known in England !
and America is unknown in Russia |
There are no convertibles, income bonds /
or things like that, and shares are prac- !
tically all common or ordinary.
BY law all shares must be registered. |
but special ukases or DEGREES have al |
lowed the creation of shares payable !
TO bearer and Of preference shares /
Formerly special kind Of stock known |
as founders shares existed, but these |
are disappearing. Promoters of a new
company are not allowed TO take more
than one-fifth of the shares of the
company. The official list OF securities
quoted on the exchange is printed daily !
in French and Russian
There is no transfer tax on securities
but the capital of companies is taxed |
at formation and there is a regular cor
poration tax similar to that recently
enacted in America. the companies be-
ing required to pay per cent on their
net earnings. All limited companies
must have the government authorize
ton, the general corporation law being
not very unlike in principle to the fed
eral incorporation law which has been
proposed in the United States.
The law is quite strict, providing
among other things that the share cap
ital must be fully subscribed and 40
per cent paid up. Bonds cannot be is
sued, for more than half the paid I'D
capital nor without the express au-
thority Of the government granted aft
er 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 mortgages
-Moody's Magazine