New-York tribune., 1922-07-30

1t prescribed form Of listing REQUIRE
ments, but the original listing of Sc
curitles is very rarely availed of. The
rules also provide for dealing in grain,
petroleum and other products. Wheat
49, however, at present the only com
modify actively dealt in, an this is
due solely to the permission to trade
IN smaller lots than the Produce Ex-
change limit of 5000 bushels.
At Saoords' Points
There are 1925 members, about 45o
active, and memberships have sold in
recent years at from $3.50 to $4,000. In
general the methods Of conducting
business are similar to those of the
larger exchange and subject to the
same abuses.
very strained relations have ex-
listed between the two security ex~
changes since the lesser one undertook
IN 1886 TO deal in stocks. The tension
has been increased by the methods by
which the Consolidated obtains the
quotations of the other, through the
use OF the tickers conveying them. 1t
Is probable that without the use of
these instruments the business of the
Consolidated Exchange would be par
aiyzed; yet the right to use them rests
solely upon technical point in a Judi
cIal decision which enjoins their re-
moval."
The foregoing applies to conditions
as observed in 1909 by an investigating
group selected by Charles Evans
Hughes. Much of the material in that
report is now out of date, but the ex-
cerpts show that the focusing of hos
tile criticism on the Consolidated is no
new phenomenon.
AT present not only the Consolidated
but all financial institutions are in a
measure under criticism as a result of
the flood of brokerage failures earlier
IN the year. Frequent conferences
have been held recently by Consoli-
dated officials, but from Mr. Silkworth's
statement there appears to be no inten-
tion radically to alter the functions
and purpose Of the Consolidated. In
submitting his answers to the question
naire Mr.. Silkworth remarked: "Re-
garding the Consolidated Stock Ex-
change, am very glad to say that the
officers and committees are working
overtime, holding meetings daily and
actively working to further the inter.
est of the investing and trading public
for the mutual benefit Of all con-
cerned." And District Attorney Banton
and his associates have expressed graf
itude for the willingness Of Mr.. Silk
worth to cooperate with them.
That the epidemic of failures was not
anticipated by Mr.. Silkworth is sug-
gested by the following comment at
tributed to him in an article On the
Consolidated which appeared in "The
Morning Telegraph" of December 1s,
1921:
ut is my opinion" the chief execu-
tive of the exchange remarked, "based
on more than twenty years. expert
ence, that membership in the greatest
odd-lot exchange in the United States
at this time possesses greater value
and promise than ever before in it's
history.
"The volume of business during the
few years under adverse conditions
has been most gratifying, and the or
ganization was never in Better shape
than it is at present to take care of
the increased trading volume which we
feel certain will come with a resump-
tion Of conditions moro nearly ap-
preaching the normal"
| The current questions which The
Tribune asked and Mr.. Silkworth's re-
is that of the writer.
Its Service
| /. Does the Consolidated Stock Ex-
change of New York fulfill an impor-
tant economic service?
Yes.
2. What is the service?
The Consolidated Stock Ex-
change supplies the only open bid
and offered market in odd lots of
| high-class securities in the
United States where the public
can and does actually receive an
immediate execution Of the ind-
vidual security or securities in
which they are interested. All
other odd-lot business of other ex-
| changes is conducted by pre-
| arrangement. For example, mem
bers Of the New York Stock Ex-
| change accept an odd-lot order and
execute 1t. either one eighth or one
| quarter of a point away from the
price of the next round lot trans
action in the particular security.
! The Consolidated Stock Exchange
| is the only exchange which keeps
| an official record of each trans
! action, no matter if only one share
| is involved. Every sale, regard
| less of the number Of shares in
| volved, Is recorded on the tape Of
the Consolidated Stock Exchange
| ticker. This exchange is the only
| exchange having an odd-lot ticker
| service.
A daily record is kept on file of
ali the transactions on the floor
of the exchange, which is available
for reference by the public at any
time. A customer Of any of our
members, by means Of this record,
can readily check up any transac-