New-York tribune., 1920-03-12
Commission Rate
On Liberty Bond
Sales Quadrupled
Investment Bankers to Put
New Scale Into Effect
Next Monday; Losses Are
Sustained at Present Rates

A group Of fifteen leading investment
houses which deal in Liberty bonds
over the counter yesterday announced
a nlgher scale OF commission rates to
take effect next Monday. In explain
ing the rise, they said in statement
TO the public that they have been trad
ing in Liberty bonds and Victory notes
at loss, and believe that the business
shouid now be put on paying basis.
The new rate will be more than four
times the old. The existing custom
among members of the New York Stock
Exchange is to charge 20 cents to in
vestmcnt dealers and 80 cents to in
ysstors for every $1,000 bought or sold.
Those investment houses, operating
under the new rate, will charge the
public $1.25 on $1,000 on denomina-
t1ons OF $1,000 or more; 81 on $500 on
ddsernoominations of $500; rs cents on a
800 bond; so cents on $50 bond.
Heading the Movement
The following bond houses are among
those who demand "living wage" for
II, their transactions in government bonds
The National City Company, the Guar
anty Trust Company, Harris, Forbes
Read & Co., Kissel, Kinnicutt & Co.;
Real & Co., Kissel, Kinncutt & Co.;
Kean, Taylor & Co.; Equitable Trust
Company, <. II. Rollins & Sons, Red
mond G. Co., Estabrook Company, Her
rick Bennett, Jelke, Hood g. Bollcs.
Blodgett & Co., and Colgate, Parl.crr
& Co.
"As patriotic duty every one was
willing to contribute literally in time
and expense to the proper distribution
OF the United States government Lib
erty and Victory loans" che fifteen
Investment houses said in Joint state
ment, to which other houses are ex-
pected to sign their names.
The undersigned. all Of whom have
given freely of their services in CON
nection with the distribution OF United
States government issues, feel that the
returns for handling these issues at
least should equal the expense In
volved.
GA careful computation shows that
transactions in these issues are costly
and, in line with action already taken
IN other cities, it is the judgment of
the undersigned that the following is
proper scale to cover the cost of
transacting business in all issues of
United States government Liberty and
Victory bonds and notes"
Observers of the bond market ex-
pressed the view that the higher scale
ought to bring about a broader market
- IitS &ONClIHIEut war issues. OeCAu96
the investment houses will have fnan-
cial. incentive for encouraging such
business, which they hitherto lacked.
Sought Cooperation Of Exchange
Instead Of Independently raising
their scale. the investment houses first
applied to the Stock Exchange for a
general change, but decided a change
OF policy from that quarter would come
too slowly and immediate action was
desired. Investment bankers. in first
taking the matter up with Stock Ex-
change authorities, asked that mem
bberss on the floor charge investme mt
dealers lie and investors "a for exc
cutting Liberty bonds transactions.
Although a group of investme mt
houses acted ndependently, the "bond
crowd" at the Stock Exchange are much
interested in the proposed change and
soon will hold conferences to work ont a
new policy.