New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-02
FOR REPEAL OF
THE STAMP TAX
Consolidated Committee Is
Preparing for Vigorous
Campaign at Albany.

The members CT tho legislative COM
,rs.too of the Consolidated Stool; Ely
.,o,gc. consisting oe =. Z. Adams Jr.
o~l,l D. Bud, L. a. Farnsworth, ~. T.
-fo~rc ard ". L 5. Webster, in co-opera-
g,n v..h ~ .. de hguero. president OF
.Nn exchange, are preparing for vigor-
o,s canlraigr at Albany 20 repea! the law
;.,oosin,. & tax on sales ard transfers Of
s.7cSs.
When the stamp tax TGs first put into
erect. in l9o5-'cs. the receipts to the state
s,r the fiscal yaa- from the tax were
sfout 100000. For the calendar year OF
10 or.y abou. 900 was obtained ~
the state. which shows tina: with business
g, the financial district steadily Gecreas-
,r. nc receipts for 1915 Will be yet small
o. Fy continuing this levy upon dealings
ic securities :: viii be pointed out to leg
isla.c:s that the state will lose IN tie de-
s.raction y: tazesle property values
through the injury 50 general business
and real estate very nron more :han has
II any tins beon obtained through the
collection ~ the tan
4 b:icf has been prepared which Will be
admitted TO tie legislative committees
following the line o. President Ag1ieio's
argument last season before the Senate
Committee on Taxation and Rctr-nch-
rnept which resulted in a favorable re-
poyt:ng Of Senator HetSe-nau's bill, which
was raised 10 the second reading IN the
Senate. The essential points of the appeal
set forth that an exchange is composed
OF three classes OF members.
Firs:-There is the man who executes
orders for non-members. known as the
commission broker. He is a very Inn
portant part Of the exchange. for. with
cu; him and the general public whom he
represents. the exchange would have no
rsason for existence. The commission
broker. however. does not pay this stamp
tax. he charges 1t 10 his client.
secon6-There is the arbitrageur. who
has instantaneous connections by private
wire with other exchanges. He helps to
broaden the market by buying or selling
in other exchanges as soon as there is
variation Of y OF l per cent, or more. He
ravs the stamp tax when he sells in New
York, but almost invariably deducts II
from a profit, as his counter operations
are made simultaneously. His tax amounts
10 a round sum, and the enforcement
of the present stamp tax law tends 10
curtail his operations and weaken the
worldwide influence OF New York as a
financial centre.
Third is the room or floor trader.
The floor trader is the balance wheel OF
the market. He is an ESSENTIAL part OF
the machinery Of the exchange. With
out him at times there would be no mar
ket. Were the commission brokers com
PEELED TO rely entirely upon each other
for the execution of orders, hourS-eren
days-might at times elapse without pur-
chases or sales. except at great sacrifices.
The floor trader operates for his own &C
count. and will buy or sell. as the case
nay be- at a moderate variation from
last sale. Through the operations OF the
floor trader the market is steadied, wide
and violent fluctuations are avoided and
large orders. which naturally seek the
broadest market. are possible OF execution.
New York without its floor traders would
he simply a follower instead OF making
the prices for the world on American
securities. The floor trader does not ma
nipulate stocks; he takes no part in So
called wash sales; he does not infringe
any Of the laws which have been passed
in the Legislature to insure fair dealing
in stocks and bonds.
President de Aguero takes the position
that if the business OF trading in stocks
is unlawful 1t should be prohibited, but If
lawful those engaged in the business are
entitled 10 the same consideration accord
ed to men ia other lines of business.