The sun., 1918-07-12
STOCK EXCHANGE
SUSPENDS MUIR &CO.
Charged With Evading Pro-
visions of the Commits
sion Law.
RULED OUT FOR A YEAR
Entrance Of Charles A. Bur-
bank Into Firm Not Re-
garded as Genuine.
RULED OUT FOR A YEAR

John Muir q Co. Of 81 Broadway, one
OF the most prominent Stock Exchange
houses In New York, Is to-day without
representation on the floor OF the New
York Stock Exchange as the result of
tho action by the board OF governors OF
the exchange yesterday in suspending
John Muir Edward II. Muir and Charles
A. Burbank. the members Of the firm
Who owned seats On the exchange. The
announcement OF the suspension. which
was made yesterday morning. was UNI
expected. and II came as a surprise to
members of the exchange and traders
generally. The suspension Is for one
year.
The general charge upon which the
action Is based is that the men sus-
rended have been guilty OF an act det-
rimental to the interest or welfare of the
exchange as stated in copy of the
charges which was served upon Mr..
Muir. The complaint then sets forth
specifically that the suspension is based
upon the charge of "devising and carry
ing out a plan or scheme to evade the
provisions of article 81 of the exchange.
known as the commission law
II is set forth in the charges that un-
der date Of July IL, 1917. an agreement
between the firm of John Muir & Co. and
charles A. Burbank was signed by which
Der of the firm. with his name on the
stationery and public announcements.
but that he was to have no interest in
the capital. assets, &C., of the fir1n, and
that he was under no circumstances to
be entitled to an accounting OF the gen.
eral business OF the firm or any OF It's
transactions except those in which he
had a personal interest under the agree
ment. BY this agreement Burbank
A.. -
the exchange for the firm and its Gus
toners without charge for brokerage or
otherwise. Burbank was to be allowed
10 transact business for other brokers
On the floor and to receive brokerage
charges for this business, except such
business as might come to him as a re-
suit of his connection with the Muir
firm. Burbank received from the firm
n minimum guarantee Of $4,000 year
as his earnings from personal business
II, return for his services. This agree
,nent was signed by John Muir. George
A Muir, Gardner S. Dresser. Edwin H.
Muir and Charles A. Burbank.
Burbank Nominal Member.
After this agreement had been drawn
up and signed, the governors charge. the
firm OF John Muir & Co. notified the eN-
change that Burbank had been admitted
scented him as q member Of said firm
and caused him to execute orders with
out charge although said Charles A.
Burbank was only an ostensible member
and had no interest In the capi-
tai. interest. profits or losses'' of the
firm. 1t Is by reason Of this agreement
and its operation that the suspended men
are declared to be guilty OF an act detri-
mental to the interests or welfare Of tho
exchange.
Notice OF the charges was served upon
Muir. who received ten days in which to
reply. Under date of July 3 Muir sent
n letter TO the governors of the exchange
IN which he endeavored to Justify his
actions. He declared that his intention
was to take Burbank into the firm as q
general partner with full liability to the
Arm for his acts: that he was clothed
with full authority such as had never
been given any persons except member
Of the finn. with the exception that he
had no authority in Office management.
signing OF contracts, checks. &c. Muir
said that he did not know the exchange
desired to regulate the respective in
comes OF partners, but had he known
Burbank would have received a per-
centage of the profits of the firm rather
than n guarantee.
Muir's letter further states that he
that Everything as proposed was all
right" Money to purchase the seat Oh
the floor of the exchange was then fur
r.shed Burbank by Muir. he says. and
details were to be arranged between
Burbank and George A. Muir. The let
TER TO the governors then tells Of soma
alleged transactions by Burbank which
did not have the approval of the Muir
firm. ''On his first days trading" says
W mn niraf
mistake, resulting in my carrying for
him Tor a long time the purchase he had
made During a part of this time this
purchase, and another occurring shortly
sfterward, showed q loss As large az
10000"
Burbank's Mistakes Pointed Out.
On clearing business. Muir's letter
declares, Burbank had given orders to
the bookkeeping department to credit
him with $2.13 a hundred instead Of 50.
i had also been found. the conmunica-
tion claims. that Burbank had taken
Improperly credit for floor brokerage on
orders originating with other members
which were placed by the firm and
which were in no way secured by his
own efforts. The agreement which he
Aligned, Muir declares, he viewed as a
matter of Office detail and routine and
'''oN II NdS III tne ndnOS OF
w. l. Ball. the company's lawyer. and
George A Muir. I'm signing the agree
men',' he says, II had no intention of
t'ading the rules of the exchange"
In concluding his defence Muir says
That 1T cannot be questioned as to all
i-.rl parties. both members OF the ex-
raugc and others, Mr.. Burbank was a
general partner; that the firm was in
al respects responsible for all his acts
ana that the rules OF the exchange do
not contain any requirements as to the
manner OF sharing partnership income
o. the respective shares thereof"
In respect TO the charges made against
Edwin II. Muir. his son. which were the
same as those made against him. the
senior Muir declares: II beg to state
mat in November. 1917. he entered the
service. The agreement complained of
was. II will be recalled. signed In De-
o-mher It was forwarded to him at
Camp Upton for his signature. He had
70 part in its preparation. He is aged
IS.
AS for myself" the letter concludes.
y have been in active business since the
age OF l4-close to sixty years. l have
h'hlcved some measure OF success and
fortune. If, as even my friends are apt
70 charge. I am at times wanting In
tact. l believe ] may fairly say, none
The less, that my business record Is fair
and honorable. Is 1t not preposterous to
suppose that would deliberately. In
conjunction with Mr.. Burbank. concoc,
scheme for my own humiliation and
N htaN.