Evening star., 1926-05-16

/ ID l. a. El@EhI.NO
/ An amendment to the constitution
! Of the New York Stock Exchange. or,
rather. the Association of the New
! York Stock Exchange Firms, was en-
acted last April which practically
| comedies the right of members having
| offices outside of the home city of
! the exchange to take concerted action
I with view TO recommending rules
J and action by the exchange in their
I immediate interest when deemed nee
! eSSary.
Brokerage problems are conSta ntly
attracting attention of interest only
! to the Out-of -the-city brokerage firms
! Time and again forward out-of
! town member has made protest
! against this or that evil that has
/ been uncovered, but the protest has
been given little consideration because
/ of the fact that there was no unified
| backing to the protest. save from one
member house.
Now the outside member houses
| will have the right to offer their pro-
! test, backed by the entire personnel.
| through the appointment Of an execu-
tive council composed entirely of out
! side-of- New York members.
; Protest Will Carry Weight.
i 1t is apparent at once that the pro
/
! barren soil. but that the association
| will give ear at once. understanding
! that but for an evil practice the coun-
| Gil would not start contention.
This executive council is composed
of Louis II. Atherton of Schrimer.
! AthertOn & Co. Boston; A. r. Wright
of A. J. Wright & Co. Buffalo: r. $.
Richards of Kay. Richards & Co.,
Pittsburgh; r. NJ. Jones Of Branch,
Cabel & Co. Richmond; n. Bissinger
of Strassburger & Co. San Francisco;
Arthur c. Rilmer of Lorenzo Ander-
son & Co. st. Louis, and W. w. Spaid
of w. b. Hibbs & Co. Of this city.
W. w. Spaid one Of the most popu-
lar younger men in the fina ancial dis
trict Of the National Capital, was
highly honored in being chosen chair
man Of this very important commit
tee, which is in itself a further assur-
ance that when the committee makes
protest its plant will receive prompt
attention from the big board.
This matter of bringing the mem
bership of the exchange operating out
side of New York into closer assoCia
ton has been frequently discussed
but this is the first time that any con
Certed action has been taken.
. Great interest has been taken in
| the movement as a means of eliminat
ing practices contrary TO the ethics
and rules of the association.
!. Members of the council will meet in
the near future in New York City and
any action recommended will be i'm
mediately reported to the association
Much good Is expected from the move
ment.
Avoiding an Evil.
The practice among bankers in the
| hoan n
turn Cancelled checks to the maker
: either monthly with statement of bal
ance or when the bank books are
turned in for balancing.
In foreign countries the practice is
! | to send depositors a list of check:
: paid and 10 send detail as TO eacf
check caShed.
1t is a fact that many banker;
; have met with trouble and not in
; frequently with loss through the praC
! tice of returning Cancelled checks
! Interruptions depositors might set III
! the claim that they had never drawn
? such and such a check. In many in
, stances ii would be an easy matteI
: TO demonstrate the truth of the mat
! ter. but a real sharper might easil!
! pave the way for making trouble, Will
the bank having only the charge o
= the check to maintain its claim
George L. Mccarthy. vice president o
. the Empire Trust Co. of New York
has invented a mechanical devic'
which will give full protection I,
turn of checks to makers, after pay
! ment
Mr.. McCarthy's device takes con
tinuous Photographic record of al
i checks paid. The device, which Il
termed a "checkograph." is capable
of taking 5000 photos on 100 feet o
5 film, costing the banks about 81, o.
. at the rate of about / cent for ever!
. 90 pictures.
. Mr. Mccarthy claims that it ma!
! be attached to any adding machin,
and that its operation will require
3 no extra work on the part of th'
s operator
? When thrown on a screen each o
: the small negatives will reproduce
all details of the check.
The Eastman Kodak Co. perfecte,
? the Photographic apparatus.
. Mr. Mccarthy conceived the device
and financed it. 1t required NOR,
I than 1S months effort to make ;
2 success of the invention. He expects
: to have the device ready for use i,
the near future.
Mellon Says $500. 100000.
, Secretary Mellon places the aggre
. gate losses sustained in this countr.
: through the operations of fake secur
ity statesmen at $500, 900 900. which i
admittedly a heavy tax to pay TO
gullibility, after all that has been sal,
, and done in the interest of education
! warning and advice.
This great loss seems to bear ou
Barnums famous every minute" es
innate.
! Secretary Mellon also urges th'
, adoption of more blue sky laws II
| different States. Certainly the Dis
trict of Columbia needs such I.
as bad as any State in the Uffon
Congress has so far refused to act.
| In view of the $780, 900 estimate