New-York tribune., 1918-07-12
Stock Exchange
Suspends Members
OF John Muir & Co.
Odd Lot Brokers Barred
From Board for Alleged
Breach of Rules

John Muir, originator Of the partial
payment plan as applied to the pur-
chase of securities; his son, Edwin II.
Muir, now in the United States army
service, and Charles A. Burbank. all
of the firm of John Muir & Co., "odd
lot specialists" were yesterday sus-
pended from membership for one wear
by the governing committee of the
New York Stock Exchange for an al
legged breach of the rules Of the insti-
tuition
The difficulty which resulted in the
suspension of the three members of
the exchange arose out of difference
Oh opinion over the status of Charles
A. Burbank in the Muir firm. Burbank
retired from Muir G. Co. on June /.
put still retains a seat on the ex-
change, for winch John Muir, head of
the firm, paid $60,0O0 The Stock En-
change governing committee charges
'hat John Muir represented Burbank
as member of the firm and caused
hlm to execute orders on the floor of
the exchange for John Muir e. Co. and
ITS customers without charge to the
nrm, although Burbank was only IAN
ostenslbIe member of the firm, and had
10 interest in the capital, assets, profits
or losses OF said firm" On the basis
OF TINS charge the head Of Che firm was
held to have been guilty of an act
detrimental to the interest or welfare
OF the exchange.
Says Ruling Is Unwarrantcd
Following the announcement of the
suspension from the rostrum of the
exchange John Muir issued the follow
ing statement of his position in the
case:
"a little over a year ago / was ap-
pointed chairman of the Liberty Loan
Baby Bond Committee. | made up nv
mind to give my entire time to this
work. and did so. 1t was expected that
my son, Edwin II. Muir, the other floor
member of my firm, would 20 into the
army. He has done so. These facts ne
cessltatcd our having another floor
member OF the exchange. | advanced
Charles A. Burbank 100000 to enable
hlm to buy seat, and he was made a
floor member. He was announced as q
general partner, and given full au-
thorlty to act as such. The suspension
ordered by the governors of the New
ork Stock Exchange is based on the
fact that Mr.. Burbank, instead Of re-
ceivlng percentage of the profits of
our business, received minimum guar
antee and his outside commiss ions.
This arrangement the governors of the
Stock Exchange have disapprovcd |
do not agree with their reasoning or
conclusion, and consider the action of
the governors unWarranted. No crit-
cism has been made of our relation
with our customers.
Arrangements have been made by
Muir & Co. for the continuance of their
business through the Stock Exchange
firm of Ware & Leland, a Chicago
house with numerous branch Offices 1t
was announced that carly yesterday
4 900 orders for the purchase or sale
of securities had been transferred from
the Muir firm to Ware & Leland fur
execution.
Mr.. Muir's Explanation
According to lengthy statement is
sued late in the day by Nh. Muir set
ting forth in detail his side OF the case,
the arrangement made by John Muir e.
Co. with Burbank constituted the lat
ter a general partner. Burbank, ac-
tording to Mr.. Muir was clothed with
full authority not only to act fer the
firm in all respects and to subject the
assets of the firm and its members to
liability for his acts, but in office man
aEement and IN the right to draw |
money he was clothed with such pow
ers as no one excepting a partner would |
have been given.
at never occurred TO me-" said Mr.. |
Muir in this statement, 'that the mat
ter of respective incomes of partners |
was one which the exchange desired to |
regulate. If it had, Mr.. Burbank would |
have received not guarantee but
percentage OF our profits, which, take !
IT, would have been an entirely unob-
jectionahle arrangement, though the
results would have been the same as
those which have actually occurred"
Differences arose between Mr.. Bur- |
bank and the firm which finally result
ed in the formers retirement on June
|, after which he made connections
with another Stock Exchange house.
NJ. Burbank, when seen yesterday, said |
that he would have nothing to say
about the action of the Stock Exchange
authorities until he had had a, oppor-
tunity to consult with his lawyers
Burbank still holds in his name the
Stock Exchange seat purchased by Mr..
Muir, and the latter is now endeavor-
ing TO obtain title to the membership.
The announcement Of the suspension
>f the members Of the Muir firm eX-
cited great interest in Wall Street,
where the house has long been one Of
he best known in the district by rea-
son Of its policy Of catering to the
person Of small means.