The New York herald., 1922-05-30
FALL OF new FIRMS
HITS CONSOLIDATED
Third of This Exchanges
Members Taken on Dur
ING or Since 1917.
RULES OF ENTRY CITED
Houses Required to Pass
'Diligent Inquiry of a
Committee.
SEAT PRICE ONLY $4,000
Brokers May Take Greater
Chances Than If Investment
Were Nearer $4,000


GThis is the second CT series OF
articles on hoW inUestors apparently
haze lost more than $4,000, 600
through bankruptcy of tpentyseUen
Consolidated Stock Exchange houses. ]
1t is generally a matter of consider
able pride to a business firm or an
organization that it has lived long and
has behind it therefore years of service
or activity that give it standing in
the community and serves as a guar
anty of it's worthiness. On the recent
. issue of tho membership book of the
Consolidated Stock Exchange. beneath
a picture of the building at the corner
Of Beaver and Broad streets, appear
the words "Founded in 1876"
The original organization from which
the Consolidated sprang was the New
York Mining Exchange. organized
in November, 1875. In 1877 it alb
sorbed tie American Mining and Stock
Exchange ana later on it absorbed the
National Petroleum Exchange, the
Miscellaneous Security Board and the
New York Petroleum Exchange and
Stock Board. The title was changed TO
the Consolidated Stock and Petroleum
Exchange of New York, and this name
was later changed to the Consolidated
Stock Exchange of New York.
Age Adds to Prestige.
1t is apparent. therefore, that the Con-
Eolidated as a single entity has age to
its credit. a study of the same mem
bership list. however, reveals that many
of the members of the Consolidated
have no such claim to respectability
that members have come and gone. and
that but few of the earlier members
are still doing business.
Strangely enough. it is these old firms
which seem 10 hold on best when there
is a furry in the financial district such
as resulted in a great number OF fail
ures few weeks ago. 1t Is the new
conner. in most instances. that goes to
the wall
The most recent membership list.
which has been corrected up to Novem-
ber / last. contains the names of ass
members, and opposite the name of each
member is given the date of his adj
mission to the Consolidated Exchange.
the firm. If any. with which the member
Is connected. and the business address
Of the member.
A careful perusal of this list shows
that of the 455 members more than
one-third, or, to be exact. 1856, were
admitted to membership during or since
1917. In other words, though the Con-
solidated as a whole has had a life
time of forty-sx years. 1S6 of the mem
bers. as such, have been in business
only five years or less.
Nor is the condition Indicated by the
most recent membership list new. a
study of the directory for the years
1913-1914 showed that only twenty-five
firms still active were then doing
business out of a total of GIL listed. and
that of these firms but three had been
formed prior to 1900. At the same time,
IL was shown that 125 commission
houses had been organized in the previ-
Gus ten years on the Consolidated Ex-
change. and of this number eighty-two
had failed.
While youth is certainly no crime, It
would seem that there may be some
relation between the mushroom bro
kerage firm and failures that cost the
investing public heavily. In the list
printed by THE New YORK HERALD yes
terday twenty-seven Consolidated firms
that had failed were named The age
OF these firms was not stated.
Failed Firms Admission Dates.
Tho following table however, gives
the name Of each firm with the date OF
its admission to the Consolidated, az
.yta tai L., tta ar, hare hin Jfroctor,,.