The New York herald., 1922-06-04

morgan meant when he made q never
to be forgotten statement about the
value Of character in banking circles. 4
Some are. not so good. but of this
sort there has been a notable cleaning
out OF recent years and even OF recent
months. There are perhaps few for
whom the Jail beckons. but II so their
tenure in Trinity place Is probably short
for Curb Association authorities are CO.
operating nowadays very earnestly and
sincerely with the District Attorney for
the protection OF investors and for the
repute of their own organization. 1t
is not easy to get away with crooked
stuff in the Curb market nowadays,
however cinch it was at one time.
As the Curb gets older its conscience
gets more and more sensitive. It's
pretty old now. anyway.
First Market Under = Tree.
Tradition has it that before there was
any thought of a Stock Exchange in
New York there was open air trading
underneath a buttonwood tree in Wall
street. From this organization of trad
ers. with operations limited largely to
the first bonds authorized by Congress.
and to shares in the United States Bank
and in the Bank Of North America.
came the Stock Market, which had its
first indoor home In the Tontine Cof-
fee House and which. after number
of interesting changes and migrations,
became the New York Stock Exchange
Of the present day.
While removal to various sheltered
quarters were going on an an ever pres
ent minority Of brokers kept up open air
trading. During the civil war 1t was
estimated that there was greater vol
ume Of business done In the open street
than In the exchange itself. Then the
Curb Market transacted business in
William street, between Exchange place
and Beaver street. In 1869 thefe was
another merging Of outdoor brokers with
the Stock Exchange. but. as before, a
minority continued to trade In the open.
Part OF these brokers organized the New
York Mining Exchange and the Petro-
leum Consolidated Stock Exchange. and
in 1885 these were consolidated into the
Consolidated Exchange.
r From 1880 to 1900 the Curb Market
was conducted in front Of the Mills
Building in Broad street. and from 1900
until its move indoors into its own hand
some building in Trinity place it did
business in front OF Is Broad street.
AJ was in that locale that countless
spectacular scenes were staged, a
thousand comedies enacted That out
of-door trading was the last word in
the picturesque from the days when 1t
was performed by the fine old gentle
men in beaver hats, ruffed fronts and
tight trousers TO the days of the roll
licking kids just out OF college and
headed for fortune from the jump off
Of the Curb Market hurlyburly.
Fathered by "Pop" Manaels.
In the early days of the Curb. the
days when they traded in front Of the
Mills Building, the members had.
really no organization, but they had
q remarkable man. His name was
Emanuel S. Mendels. but every one
called him Pop One might almost
say that he originated the Curb, for he
loved, 1t and devoted all of his time
outside Of sleeping TO its well being.
All Of his interests were wrapped UP
in it.
: Through sheer integrity and force OF
character he became the arbitrator Of
all disputes, one man court for the
settlement Of difficulties. He interpreted
the unwritten law of the loose body of
brokers. He strove to give dignity to
the association. He was a terror to
evil doers. and to the hooligans that in
vaded the curb.
When new projects approached tho
curb. asking for recognition. and for
4
dels who appraised the honesty and
good faith of the applicants and of
their applications. Nowadays this in
vestigation is all systematized, through
committees and banks and references
and so on. But in the old days 1t was
one mans character and shrewdness
that marked the deadline for crooks.
Nobody ever found cause to charge
that Mendels had favored q dishonest
enterprise. but his authority. of course
was limited legally and outlaws often
worked among the legitimate traders,
calling themselves curb brokers. Men
dels accomplished an extraordinary
amount Of good. He put the curb on
its feet and set It going. The old curb
manual was his work. and this docu-
ment was the basis of the new rules
and regulations Of the association.
When Mendels died in 1911 there was
keen sorrow among the men who had
followed and benefited from his ex.
perience and advice.
Stocks Carefully Tested.
Nowadays the Curb Is steered and
guided in formal style. There Is
board Of directors of fifteen, with large
powers. There are committees on arbi-
tration, complaints. membership, well
fare, finance and law.- Executive offices
are maintained in the new home and in
these applications are investigated and
other necessary business transacted.
In every case an effort Is made to in
vestigate the character of stock offer
ing by requiring in advance of listing a
statement Of the assets. liabilities, earn
ings and expenses. A list of officers,
with bank references. is required
Sworn statements and verified prospec-
fuses must be submitted. Certificates
of title with accurate maps are indis-
pensable. Fifteen per cent at least of
the company's stock must be outstanding
and in the hands OF the public. In these
later days every possible precaution is
taken by the governing authorities to
protect the public and to forestall fraud.
The Curb is recruited from pretty
much every condition of keen. ambitious
youth. Many Of its members are the
sons OF prominent bankers or brokers.
placed upon the Curb by their elders to
gain. through hard knocks. a foundation
knowledge Of the practical workings OF
finance. Many college graduates with
leaning toward finance start in the
Curb before rising to 100000 seats on
the Stock Exchange.