Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1913-04-25

this commission be charged in all
cases, and if a broker should make
any exception, for the first offense
he is suspended from the Exchange
for from one to five years, and for
the second Offense he is completely
barred and his seat is confiscated,
Notwithstanding that this rule alb
solutely prohibits all competition be-
tween the members of the Exchange.
Suppose also, that Smith purchased
this stock as a speculation, and at
the time he sends in his $1,000, he
instructs his broker to hold the stock
until it advances to- Is, or to $3.50,
and then to sell. The broker puts
the stock in his vault, and in
meantime needs money. The Ex-
change permits him to hypothecate
Smiths stock at the banks without
Smith s. knowledge or consent. And
if in the meantime the broker be-
comes a bankrupt, each one of the
], 100 members must first be paid
in full, before Smith gets a single
cent?
Before any stock may be sold on
the Exchange, or generally regarded
as good collateral, it mmust be passeI
by what is known as the Stock List
Committee. This requires a write
application, showing in detail the
condition of the concern; must be
accompanied by sample stock GER
tificate, bond, mortgage, or other
security to be listed, printed by the
security to be listed, printed by the
American Bank Note Company; to-
gether with the listing fee of $50 for
each million par value of the issue.
The American Bank Note Company
is controlled BY certain members Of
the Exchange, and unless all certi-
ficates, stocks, bonds, mortgages etc.,
are printed by it the Governing
Committee of the Exchange will re-
fuse to list it.
The Committee on Stock List may
also direct that any security be taken
from the list, and further dealings
prohibited, an the Governing Com
mittee may suspend dealings in Sc
curities previously admitted to quo
tation on the Exchange, or summary
rdmove any securities from the list
without notice.
These provisions are frequently
used by the owners of the bulk OF
stock to squeeze out the minority
stockholders. In the organization of
the Southern Railway Company, by
]. P. Morgan & Company, some nine
teen years ago, certificates repre-
senting over $4,000 shares, whose
holders were unwilling to resign theil
voting powers, were thus summarily
removed from the stock list, taken
from the market, and rendered
practically valueless and the same
plan was followed in the organiza.
ton of the tobacco trust. This trust
was created by the consolidation of
the American Tobacco Company and
the Continental Tobacco Compan.
under the name of the Consolidated
Tobacco Company. The Consolidated
agreed to pay % per cent Of the
value of 3O,OOO,OO shares of the two
old conernsc at 200 and par, "espec'
lively, and the Exchange of stock
proceeded until the trust had acquir
ed all but about 1880 shares of the
common stock of the old American
company when Thomas F Ryan re
Quested that this issue be stricken
from the list. The request was grant
ed, and value of the 1850 shares
practically destroyed.
York Telephone Company and pro
The Exchange controls the New
hibits any other service to its mem.
bers. If any member of the Exchange