New-York tribune., 1922-07-30

i4. HOW does the total volume of
business on the Consolidated compare
with that on the New York Stock Ex-
change?
In answering this question it is
important not to lose sight Of the
fact that the units Of trading on
the New York Stock Exchange and
the Consolidated Stock Exchange
are different. The handling Of the
ten-share unit on the Consolidated
Stock Exchange necessitates Writ
ually the same routine and takes
just s much time and is just as
expensive as the handling of the
10O-unit on the New York Stock
Exchange. The volume of Consoli-
dated Stock Exchange business for
the year ended December 81, 1920,
was 21,785,014 shares; for the year
ended December 81, 1921, 43 ,609 ,49o
shares. should judge the number
Of shares dealt in as compared
with the sales quoted on the off,
cial sheet Of the New York Stock
Exchange would be approximately
25 per cent.
Is. Does the future of the Consoli.
dated Exchange lie in changing it's pol
'cy and becoming primary market in
certain securities or in continuing to
deal IN the same securities as the New
York Stock Exchange?
There is no idea at this time of
any change in the policy of trad
ing or any change in the class Of
securities now being traded in on
the Consolidated Stock Exchange.
faci!lties i! are provided, and will
continue to be provided, for the
trading in of all securities traded
in on the New York Stock Ex-
change, and primary market can
be established. upon application,
in other highgrade securities not
listed on the New York Stock Ex-
change. For example, bond issues
not traded in on the New York
Stock Exchange could be traded in
provided application were made
and the issue found satisfactory.
The Consolidated Stock Exchange
is primary market for odd-lce
business.
lComment-1f the Consolidated is a
primary odd-lot market in the securi-
ties in which it deals, the implication
is that the big board is a secondary
market in the same securities in odd
lots. This is not our understanding.
AS far as listing is concerned, we
we're informed by Mr. Silkworth that
when the New York Stock Exchange
lists a new company, the Cons olidated
then lists it more or less automatical-
", without independent investigation.
MIR. Silkworth remarked that the Con-
solidated is ready to accept the listing
requirements Of the big board as salts
factory. We consider this attitude
open to criticism, particularly since
the Consolidated aspires to be the
market place for the little fellow, who
needs safeguards and protection. By
merely duplicating the Stock Exchange
listings the Consolidated would be re
peating all the errors that the big
board might make. In our opinion, an
exchange is not fulfilling its highest
economic function when it accepts the
decision Of hostile, competing body
as substitute for its own investiea-
tion. According to our understanding
companies which apply for listing on
the New York Stock Exchange do not
as general rule, simultaneously seek
listing on the Consolidated. which
usually lists the shares on its own
initiative. The New York Stock Ex-
change gets large revenues from com
panies whose securities are listed.)
is. What efforts, If any, are being
made to change the fundamental policy
in regard to listing?
None at the present time.
II. Is the Consolidated Stock Elk.
change, in your opinion, primary or a
secondary market in the securities in
which it NOW deals? Give data to sup
port your opinion.
See answers to questions 9 and Is.
(Comment-In the absence Of fuller
statement on this crucial point, we
would hesitate to dissent from the
the Consolidated Is secondary mar
ket.)
Is. Any general comment.
So long as human nature is what