The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-01
STOCK EXCHANGE
RAISES ITS RATES
Commissions for Purchase and
Sale Of Stocks Go Up 20
to 60 Per Cent.
GOVERNORS ADOPT PLAN
New Schedule Said to Be Made
Necessary by Increase Of
Brokers' Expenses.

Unless a majority Of the members of
ehe New York Stock Exchange vote
against the plan the commissions
charged on the purchase and sale of
STOCKS by brokers will be raised in a
week from 20 to go per cent. depending
upon the prices OF the stocks traded in.
This was decided upon at a meeting of
the governors held yesterday afternoon.
when the commission problem, which
mas been under inve stigation for many
months. finally was threshed out. The
schedule adopted by the governors will
20 submitted TO the members of the ex-
chahge FOR their approval. The MEM
bers must vote witnin week on the
proposal, and unless a majority OF the
fuli membership votes in the negative
the plan will be adopted and imme-
diately become effective.
According to the schedule approved
by. the governors the commission on
stocks costing under $40 a share will be
raised from 1925 to $3.50 a hundred
shares stocks costing more than $40
share, but under s125 share, from
S12.50 hundred to SIS a hundred
shares; stocks costing more than 1925
share from s12.50 hundred to $40
a hundred shares. The first two items
OF the schedule represent increases of
20 per cent. each and the last is an adj
vance OF so per cent. The commission
on bonds Is unchanged, at orse-eighth Of
l per cent.
The rate Of commission paid by men,
bers OF the exchange to the floor brok-
ers, or the two dollar men, who execute
orders given from other members OF the
exchange. Is increased in the schedule.
The increases in that section are that
when principal is given up the COM
mission In to be raised from 81 a hun
dred shares to $l.25 a hundred shares
on stocks Of $40 or less from 81 to $3.50
hundred on stocks between $40 and
$l2t, and from 81 to SO hundred on
Rtocks costing more than $125 a share.
When principal Is not given up the
commission for floor brokers is to be
raised from 31.25 to s1.75 a hundred
shares on the first class from $312h
to S3.75 a hundred shares on the second
class and from s3.12h to So n hundred
shares on the third class For trading
In bonds the Moor brokers would receive
S2.50 on bonds selling up to s125 and So
for bonds costing more than that amount
when a principal is given up and In the
alternative case 1915 on bonds up to
that amount. In the case OF floor brok-
ers further change in the schedule
provides that the foregoing figures on
stocks traded In when a principal is
given up. except that when the amount
dealt In is less than 100 shares, the
commission shall be not less than q cent
share on stocks selling for less than
$40 and two cents a share on stocks
selling for $40 or more a share.
When the agitation for a readjustment
or commissions for stock transactions
was started several months ago It was
pointed NoNt that heavy increases In the
brokers' expenses made such a step nee
essary- Since that time there has been
still greater Increase, it Is declared
and the change has become more neces-
sary The increase in wire charges
alone is said 20 be SO per cent. 20 per
cent OF which was added by Postma ster-
General Burleson when the wires we're
taken over by the Government and an
additional 10 per cent for taxea Clerk
hire. II Is declared, has increased 80 per
cent. In the last Ave years. Other big
increases In brokerage expenses which
Justify the increase in commissions are
noted. 1t Is said
In the new schedule OF commissions the
governors have followed very closely the
schedules of the foreign bourses For
instance. commissions on the London
Stock Exchange for shares dealt in In
the American market are as follows:
For stocks costing IS or less, at dlscre-
tion; from IS to s25. 6 pence from s25
to $50, pence; from $50 to 500. a
shilling; from 500 to $3.50. 1 shilling Q
pence: from $3.50 to 5000. shillinas,
&c. and an additional rise of 8 pence
for every $50 or portion thereof in tho
price OF the stock