The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1913-04-24
STOCK BROKERS
SAY BUSINESS
HERE'S" ROTTEN''
He'll Board of Review That
Undertaking and Other Causes
Make Ii Improbable
ASSESSMENTS OF THREE
FIRMS CUT TO $4,000
4. G. Craig, Summoned by Ma
gel, Describes How Trans
actions Are Carried On

There is no money III tne broker
age business, according 10 the state
ments made by the managers OF three
local brokerage offices before the
board OF review, "Wednesday morn
Ing. when they protested against
100000 assessment each Estimator
Thomas G.. Craig, supened as Wit
ness by Assessor John {. Nagei, told
the aldermen of the methods OF tran
sacting business In brokerage OIL
nee. The estimator, who was former
ly local manager for Paine, Weber
a Co.. did not make any startling dis
closures. After listening to the state
ments made by the branch Office man
ayers, the board reduced the assess
ment to $4,000 i'm each case. TWO
of the managers consented 10 THIS
figure before leaving the committee
room. The firms cejcerned are Paine.
Weber 4 Co.. Hornblower & Weeks
and Hayden. Stone & Co.
THE stock broker is between the
devil and the deep blue sea- said
Manager Hayes. OF Hornblower &
Weeks. The brokerage business Is
the rottenest In this prosperous city
of Detroit. Legislation against securi-
the undertaking in tlfe magazines and
the dullness OF the market at the
present time have combined to make
the business OF the stock broker a
nerve wrecker.
''The fact OF the matter Is that
you fellows don't pay any taxes or
list your stock here or down ease
where your main Offices are located"
said Assessor Nagel.
The brokers referred the assessor
to recent financial reports showing
that the main offices had paid heavy
tax In eastern cities.
Manager Bennett. OF Hayden, Stone
4 Co, asked about the average bank
account OF the firm. said that II aver
ages between $4,000 and $4,000 daily
for the year and he produced bank
books TO prove his statements. He
explained that the records of debts
and credits were kept at the main OF
Ace. The other two managers made
similar statements.
Mr.. Craig told the aldermen that
when he was with Paine, Weber &
Co, the daily bank balances ran from
S26, 900 to $4,000. with debts OF from
100000 To 100000 charged on the
firms books to customers.
Asked TO describe operations by
which accounts went on the books. he
described how, for example, custom
er would deposit $1,000 as a margin
In purchasing 100 shares OF stock. The
brokerage Arm would charge the bal
ance OF the purchase price OF the
stocks, $4,000. against the customer
and wire for the stocks. On receiving
the stocks. the brokerage firm would
deposit them with bank, borrow on
the certificates and send the money
ON to New York TO complete payment
on the purchase. The brokerage OF
nee, OF course. charges the client q
fee for making the transaction
Assuming that the capital stock aud
surplus of insurance companies are
taxable. even including so-called Ex
exempt city bonds, held by many OF
the local insurance companies, Asses
sor John G. Nagel Wednesday morn
ing put l3 local insurance companies
on the assessment books for $6,932,-
220. The insurance companies Will
protest against the assessment ana
carry the matter into the courts, SO
that the city will get no returns on
the added assessment this year.
The insurance companies are now
assessed as follows: Federal Casual
ty Co.. $305. 400: Detroit National Fire
Insurance Co.. S42S.500; Standard Ac-
0dent Insurance Co. $1.844,170; De-
troit Fire Il Marine Insurance Co., ST.
$25O.7OO; National Casualty Co. 1882.
800: Michigan Fire & Marine lnsur-
ance Co.. $612.650; Columbian Ma
tional Fire Insurance Co. 100000;
Michigan State Life Insurance Co.,
S21, $780, Northern Assurance Co,
9116,O00: Detroit Life Insurance Co,
$21S,00O; Imperial Life Insurance Co.
$4,000: Peninsular Life Insurance Co.
$123,0 900: Michigan Mutual Life lnsur-
Ance Co.. $S72,S00.