The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-09
WANT EXCHANGE
FEES READJUSTED
Committee Will Recommend
to Governors That Rates on
Stocks Be Changed.
AFFECTS FLOOR BROKERS
Eventual RevisiOns of Liberty
Bond Commissions Is Re-
ported Expected.
AFFECTS FLOOR BROKERS

A recommendation In favor OF re-
adjustment of New York Stock Ex-
change commissions. and, It is under
stood, a readjustment of the commits
sions paid TO floor brokers for bushes.
done for members of the exchange will
be made to the board of governors this
month by the special committee ap-
pointed to look into the commission mat
ter. The recommendation probably will
be made al the meeting on next Thurs
day. These facts were made known at
the annual meeting OF the Associat lon OF
stock Exchange firms on Friday night
at the Harvard Club. during which the
associations committee on commissions
announced that the exchange sub-com-
mittce would make the recommendations.
The plan of readjustment, on which
the special committee will make Its IA
vorable report, It Is understood. will pro-
vide for basis OF $3.50 hundred
shares on stocks selling below $40. SIS
a hundred shares on stocks selling for
between $40 and 500. and $50 a hun
bred shares on stocks selling for more
than 800 a share.
Early last summer the movement for
a readjustment OF Stock Exchange com
missions was set on foot and Il spey
committee OF five members. with Bayard
Domnick of the firm OF Domnick 4
Domnick as chairman. was appointed
by President w. G. S. Noble 10 nvesti-
gate the matter. Various propositions
were presented TO the COMMITTEES and
several concrete plans were taken un-
der advisement, but it is underst God that
the readjustment plan outlined is the
one upon which a final favorable deci-
sion has been made by the committee
and which 1t will recommend that tbs
board Of governors shall adopt
At the time the committee was ap.
pointed little thought was given TO the
commissions paid floor brokers for t.
business done by them for members 81
! the Exchange. They are called two dol
| lar men. 1t is underst God that when tho
matter of commissions Generall% Wa
| taken W these brokers came in, f'r
| their share of attention. and the plau
| Tor a readjus:meut of their commissions
| Is said 10 embody advances corrCspyud-
| l:g ia the average TO the advance IN the
| regular commission rate.
| 1t Is reported from a reliable source
| that while no action covering a new
| basis OF commissions on dealings in
| bonds has been taken a REIMBURSEMENT in
| that department is expected. although
| probably not for a little time. such a
| readjustment in the bond department -
| expected. when it comes, to include all
| transactions in Liberty bonds. the COM
| missions charged Oh which are at pres
| ent left more or less to the discretion Of
the members OF the exchange.
| The movement for a reimbursement OF
| coSlmission rates received its impetus
| from the fact that the rapid and steady
| growth In the operating expenses OF
| brokerage firms have reached the point
at which net profits are considerably
| smaller than they were one or two years
ago. Not only have expenses been con
siderably enlarged by reason of much
heavier salaries paid to clerks and other
Office employees, but the Government
ruling that all brokers must keep a
memorandum OF their business for
checking stamp tax returns by the Inter
mai Revenue DepaT tnent niece ssitatsd ths
employment by practically every firm OF
at least two extra clerks to handle those
additional accounts.
Commission rates have been increased
in some other EXCHANGES. including the
Chicago Board of Trade, during the pas,
year and a half. and New York stock
btokers were of the opinion that they
were entitled to a reimbursement which
! would net them at least some increase In
income with which 10 meet heavy In
creases In operating charges.