Evening star., 1928-11-24
BY JOHN F. SINCLAIR.
Special Dispatch to The star.

Special Dispatch TO The star.
NEW YORK. November 24.-Five
hundred and fifty thousand dollars was
paid yesterday for seat on the New
| York Stock Exchange, a 100 per cent
! increase in one year. Three Stock
Exchange memberships sold on october
! 81, 1927, and one on November 3, 1927,
for $270,000 each. So this last figure
is a little better than 100 per cent
increase in one year.
Is it worth it?
"It is a better buy now than it was
one year ago." a Stock Exchange mem
Der said today. II would not sell mine
for one million dollars"
The young man, under 40, who made
this statement bought his membership
five years ago for less than 100000.
why is a Stock Exchange member
ship now more valuable than ever be-
fore? There are 100 memberships in
the New York Stock Exchange. Some
firms have 10 memberships. Others
have memberships. Some have 8
memberships and some only /. Some
are very active. Some are inactive
John D. Rockefeller is a member Of the
New York Stock Exchange. He never
appears. So Is j. P. Morgan. He never
appears.
Scale Of Commissions.
But why has the membership price
risen 100000 this week? A membership
derives its value from two sources First.
commissions on the sale Of listed stocks
and bonds. too--imade to other mem
bers. Second, interest on money loaned
to clients.
The minimum scale of prices for pur-
chase or sale of stocks listed on the ex-
Nh {s VNA
half cents per share for every share
quoted on the New York Stock FX-
change for less than $40: 1912 cents,
over $25 and under $50; Is cents, over
$50 and under $75: 90 cents, over $75
and under 500; 25 cents, over $100 and
under 5000; 80 cents, over 5000 and
under $3.50, and cents additional for
every $50 extra.
For example, storekeeper in Lincoln,
Neb., likes a stock which Is selling for
$50 share on the New York Stock
Exchange. He goes to his broker and
buys 200 shares, paying $4,000 For the
privilege of buying this stock, he, in
addition, pays the broker. who Is pre-
sumably member of the New York
Stock Exchange, Is cents a share Tor
each of the 200 shares, or $50. The
broker is not interested In the stock
his fee of $50 for it.
This scale OF commissions went into
effect on October 81. 1924, on the eve
of the now famous Coolidge bull mar
ket."
On October Of this year there were
1.l3l stocks listed on the New York
Stock Exchange, of which approxi-
mately 800 are. active--that Is, being
bought and sold frequently.
Increase in Business.
Orders are sent In daily from every
| town and city in the United States,
! largely determines the value OF the
membership.
| Before the 1924 scale Of commissions
went into effect 1000, ,00O-share days
we're unusual. Last year the 1000 000-
share day was unusual. This week
5000, 900 and 100000 share days have
been usual.
From January to November %,
| 1927, total of 504 ,482 900 shares were
dealt in. For the same period this
year total Of 796.677.000 were dealt
in. Here Is an increase of 292, 900. 900
shares, or better than SO per cent in
crease over last year.
Stocks are higher. Commissions arc
| earnings from commissions are double
this year what they were year ago
II is estimated on good authority that
about $3,000,000 day is being taken in
commissions by the members of the
New York Stock Exchange.
This is one reason for the rise In the
value of memberships. Another one Is
| the profit made on loans to clients. On
October 81. 1927, brokers' loans totaled
| So. GAG, ,000,O 900. October 81 of this year
| the total was S5,879, 100000. Since that
| time 1t has gone up to over $4,000, ,000,-
600. So members have loaned over
81. 000, 900, 900 more now than year ago
| to clients. 1t is customary to add an
! interest charge above what a broker
pays his bank, Of from to 2 per cent.
II that figure were even ] per cent,
there would be another $40, 0,000, 900
added income over that of year ago,
or around $40 900 per membership this
year, If this amount were evenly divided.
Million Share Days Seen.
The Nation is growing. Millions of
people have money now who never had
anv before. It Is freely predicted that
within a few years 10000, ,0OO-share days
will be seen. Should this come about.
the New York Stock Exchange member
ship will be indeed an exclusive million
aires club of at least 1,100 members,
for every membership then would be
worth not less than 100000.
This does not include the New York
Curb, the second largest exchange in
the United States, with its $50 member
ships one of which sold this week for
$50, 900. It does not include any Of the
other nupae{ous stock exchanges