The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-12-13

TWO
i can't tell the number OF the lat
Ter. A member may be a commission
broker today and an operator mex
month"
II see from your list of members
members of the Gould family are
members of the exchange. Why z
asked Mr.. Untermyer.
II can't say. unless they want to
rave commissions on their transac-
ticns.' replied stnrgls
Mr., Ssurgis said that an Increase In
membership would affect the value
Of the seats, but the exchange was
willing to increase its membership
when the public needs demand II,
Don't you think $4,000 an ex-
oreitant price for scat p asked MT
JntetTnyer
II do not. Its guaranty for the
performance Of obligations, and IL
protection to the ether members OF
the exchange Business has sncress-
ed in volume In recent years. When
/ was q young man brokers were
satisfied with profits of ss,ooe year.
.'po YOU think il fair that In the
event Of the failure of member Of
the exchange the value OF the seat
should go TO other members. ana not
be part 81 me assets to be distributed
to all creditors alike" asked Mr..
JnteFruyer.
Value Of Seat Protects.
az do" said Mr.. SturgIs emphati-
cal!v, Customers should 20 70
strong houses, or they need not go
To any house at all, The value of
the seat il the protection to other
members"
But YOU have the right TO ex-
anime the books of your members
at any tirne. and 10 have better know
ledge of the condition az your mem
oers than Il customer could have, re-
torted Mr.. Uutermyer.
yes, but you can't be sure that
a man solvent today may not he In
eoivent tomorrow.
In response TO questions Sturgis ad-
uaftted that the Hughes investigation
had no power TO subpoena witnesses,
but merely prepared list Of que~-
tions which were answered by
members Of the exchange, after
consulting with counsel The report
that was made to Governor Hughes
was printed but never made public.
The only persons who had access to
II were members of the exchange
Sturgts understood that the expenses
Of the commission were paid. but he
didn't know by whom. He denied
thai the stock exchange paid them.
AS To the hypothecation of secur-
.ties of customers by stock exchange
houses. Sturgis admitted II was done
irrespective Of the amount that had
been paid on the securities by the GUS
toner. lie vas unable to find any
exchange rule prohibiting It.
Regarding Matched Sales.
Sturgis said that matched sales.
that IS. orders TO buy and to sell
given through the same house at the
same time. were regarded as legi-
innate II the commissions were paid.
He said II was done TO make the
market appear active. and compared
IT to advertising. He understood from
hearsay that it Was a common prac-
tice. and was done TO raise price,
or lower them, according 10 the needs
uf the manfputar.
Siurgis admitted the feud between
the New ork Stock EXCHANGE, an,
the Consolidated, which he said Wa
due TO ancient controversies. and en-
hanCed ny the fact tffat the C1nsoI-
sidated nAmbers took one half the
commissions asked by the bigger eN'
change
st would tie healing balm If they
would charge the full priees, Ia
said.
He lodged when asked why th'
curb brokers' were kept out in th'
rain, but finally owned that II they
were under a roof they would he {
rival exe hange. and thst the rules @
the New York Stock Exchange for
batae it's nembers dealing with thos
OF any other exchange.
Method of Lending.
Methods OF lending money IN III
New York stock Exchange were OK
planned by J. II. Griesel, of Gries2i 4
Rogers.
can you give some idea If 'h
amount of money that Is leaned In
days transaction" asked MIR. Tn
terr7yer.
"Somet!mes," replied Grelsel, "fhre
or four millions are loaned in if eel
or twenty minutes, this volume O
transactions serving as a basis 70
rates on renewal Of loans. haV
loaned sometimes s25.0oo,000 day
and have boa rowed $4,000 600. | rep
resent the borrower rather than th
lender and | get the benefit in tn
tsaning tra1sa ctions."
do j. P, Morgan g. Company loal
at the exchange
They frequently do So replies
Greisel, although months may elaps
between their transactions. The prin
cipal lenders are the National Cit,
bank. the Chase National, and III
Bank of Commerce. " hen loaninl
for out Of town banks, the New Yorl
hanks generally make known In
banks for which they are loaning."
What would he the result OF fix
ing a rate of interest in money oi
the exchange" asked Mr., Inter
myer.
1T would keep the money at hom
in the country tanks" replied Greisel