New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-09
Higher Stock
Commissions
Recommended
Exchange Governors APP
prove Calling for an In
crease in the Rates
okers'Expenses Greater
Must Have Offset to the
Burden of Mounting
Expenses of Operation

The high cost of specializing on the
Stock Exchange is going to soar still
higher If report on commission rates
prepared by special committee is
approved by the board of governors.
Recommendation that the new sched-
ule be put into effect will be made at
meeting of the governing committee
scheduled for next Thursday at
O'Clock.
The sub committee. of which Bayard
Dominick, of Dominick & Dominick, is
chairman, IN It's report proposes the
following new rates: $3.50 hundred
shares on stocks selling below $40 a
share, SIS hundred shares on stocks
selling between $40 and 500 share
and $50 a hundred shares on stocks
selling above 500 share. The stand
ard commission on brokerage transac-
lions now amounts to $3.50 a hundred
shares, regardless of the market value
of the stock. If the changes suggested
are approved there will be substan-
tlal upward revision in the rates
Other Changes Recommended
Stock Exchange members CLAIM, that
they are entitled to higher commits
slons to offset heavy increase in the
They also argue that while the changes
proposed are generally higher than
those now in effect, adoption of the
new rates would remove many ineqauli-
ties existing in the prevailing method
of charging for buying and selling
stocks.
While the rates mentioned cover in
the main. the recommendations of the
Dominick committees report, that
o1c
changes, such as a revision of the pres
ent system of charging for business
emanating from out-of-town firms that
are not directly represented on the
floor of the exchange. In addition,
it is suggested that brokers on the
exchange who act for other brokers
and charge commission of 50 a hun
dred shares, should increase their
rates slightly.
In a plan submitted to the govern
ing committee of the exchange last
November by the Dominick committee
the recommendation was made that the
rates proposed should also apply to
dealings in bonds, except in the case
of the United States Government is
sues, where the commission is a matter
of private arrangement between the
buyer or seller and the broker This
report also recommended the following
rates:
For stocks selling under $40 share.
So; for stocks selling between $40 and
S25 a share, $40; for stocks selling be
tween $25 and S75 share. SIS, and
for stocks selling above S75 a share.
$50. This report vas disapproved by
the governing committee in its entirety.
Reason for Delay
One OF the principal reasons for the
delay in the preparation of the rates
now proposed was the objection of
the so-called wire houses to any propo-
sltlon which would increase their com
mission charges. At recent hearings
held before the Dominick committee
some out-oftown brokers stated that
it would be cheaper ror them to estab-
lish Offices in New York and conduct
their business through the So brokers
rather than pay the higher rates. The
commissions now charged are said to
vary from SIS hundred shares to s625
The full personnel of the Dominick
committee in addition to Mr. Dominick
includes w. W. Heaton, of Day g. Hea-
ton; Robert Atterbury, Of Van En-
burgh & Atterbury; S. L. Cromwell. of
Strong e. Sturgis, and Edward Roesler,
of Laidlaw e. Co.