The evening world., 1912-12-12
BROKERS ATTACK
FREEZE OUT" RULE
OF STOCK EXCHANGE
Continued from First Pag..)

change brokerage house. dated May ~.
1909. The writer's declined to do any
further business with Obers and also
declined to act for b customer sent to
them by Obers.
Mr.. Obers said that when the Curb"
market was organized he was forced to
desert his business on the Curb because
the rules adopted "at the instigation Of
the New York Stock Exchange" pro-
hibited any curb market dealer from
dealing In any other exchange except
the New York Stock Exchange.
Arc there a great many securities
OF interstate Industries which can be
bought and sold only on the New York
Stock Exchange" Yes"
"yf . Consolidated Exchange member
owns such stock or bends, then he oan.
not sell them In any MARKET" "only
by trading under cover" answered Mr..
Helm
The opinion OF the New York state
Supreme Court upholdng the Stock
Exchange rule IN the suit brought by
Mr.. Helm wat put In the record.
CORRESPONDENCE WITH GARY
10 CITED.
Miguel II. de Aguers, president of the
Consolidated Exchange. was sworn. He
said that a number OF transfer oflces
refused to accept the guarantee OF the
Consolidated Exchange or It's members.
and gave the following list; Pennsyl-
vanla railroad, Lehigh Valley. Atchl-
son. Topeka ana Santa Fc, United
states Steel Corporation. Harvey Fisk
G Sort. tho Bankers Trust Company,
the Manhattan Trust Company and the
Guaranty Trust Company.
Correspondence covering n period OF
| two years betwcent the Consolidated
Exchange offices and Il. H. Gary OF the
| Steel Corporation. In which the Ex-
change sought IN vain to secure transfer
facilities for steel stock on the Consoli-
dated Exchange. was put into the
| record.
| Frank +. Sturgis Of the Stock Ex-
change. when called to the stand. said
! he had been "A member OF the Governing
Board OF the Exchange for many years
and was IT, president from 1892 to
1894. lie said that the Governing
board which was the executive au'
thority, was composed OF forty mer
and that the Exchange membership
amounted to 100. 1t had 1860 mem
bers when organized. lie said tina
the volume OF business to-day WA
probably ffty times as great as It wal
when the Exchange was organised II
1869.
Then why, n the business has In
creased no much, has tho membership
Of tho Exchange not Increased proper
tionately?" asked Mr., Untermyer.
BROKERS UNABLE TO MAKE 4
LIVING.
Il can only say In answer to tina
that the publlc's business mas been wei
taken care OF by the Exchange. Their,
are plenty Of bnokers TO do the business
as IL evidenced by the fact that tn
price Of seats on the Exchange has gon
down In the last few months. Broker
have been unable to make a living,
answered Mr.. Sturgls.
Mr.. SturEis said that the price o
seats was now about 5000, but that .
high as $685. 900 had been paid for a sea,
lEr. Btur6is said that the Unite
membership would "in all human prot
ability" be extended by the govsruiu
hoard at any time that II BEGAN,
necessary"
Mr. untcrmycr brought out that fail
, ures had occurred on the exchange b
which customers had lost their stock
held by an insolvent member. In cas-
OF that kind, MIR, Sturgls said. the pre-
ceeds OF the insolvent members sc,
80 a.