The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1929-12-27
q WASHINGTON TINES FINANCIAL News
STOCK HOUSES
ASK TO GUT
WAGES

NEW YORK, Dec. 27.--The
question Of customers mems sal.
aries has arisen as an important
item in arranging approximate
1880 budgets for numerous stock
exchange houses. Practically
every firm is concerned with this
matter.
Many Establishments have taken
place and are contemplated in sal
aries to such employees. The ma
jority naturally are downward,
since it IS net expected the high
average volume of business on the
exchange will be maintained over
the next few months at least.
The attitude Of the stock ex-
change itself toward such read
justments in customers mems
salaries is that each case merits
individual attention and decision
ALI member firms are required to
submit 10 the exchange applicar
tons for permission to employ
customers men and also for per-
mission to pay a specified salary
or to change the compensation.
The exchange frowns upon and
forbids in it's constitution payment
of salaries based upon fluctuating
volume of business. A specific
salary is favored.
1t has generally been the ex
perience of stock exchange. firms
De- ~
increased compensation for Gus
toners men without much ado
from the exchange. A conten
plated reduction in commission
mems salaries, however, quite
often meets refusal Of permission
from the exchange, acting
through its committee on com
missions and quotations.
1T is known that the commit
tee has on more than one occa-
sion recently declined to permit
downward adjustment of such
salaries. It. is stated on the COM
rnittee'S behalf. however. that
many such requests have been
approved. Each application is
Judged entirely separate from all
others.
Particularly since the recent
collapse IN stock prices with the
subsequent virtual annihilatior
Of public business have custom
erS mems salaries become a mat
ter of increasing attention from
brokers.
In many instances the volume
Of business brought into the
firm by such employees has de-
creased to half its previous total,
while In not q few instances their
business has been practically
wiped out. A number Of Gus.
toners men have voluntarily re-
tired from the stock exchange
business.
"A few have voluntarily applied
for reduction in their salaries,
appreciating that their value to
the brokerage house is subStan-
TALLY leSsened. Even in such
instances it is known that the
stock exchange has refused per-
mission to put lower salaries into
effect.
The customers man is a vital
INK in many houses to their
clientele. lis importance is re-
Iation to the volume of a houses
business was never greater than
during the great bull market
which terminated only a few
weeks back.
Some of the customers men.
without any previous experience
ia Wall Street. soon after enter.
ing the business. were able to
command substantial salaries.
The highest priced customers
man in Wall Street was under
stood to have commanded q
salary running into six figures.
Most customers men when they
command such huge business are
given a partnership in the firm,
and often for a substantially
smaller business. Numerous Gus
toners men command salaries
around 5000 a year.
Although the stock exchange is
quite vigorous in acting against
any known instances of commits
sicn-splitting either with the Gus.
toner or the customers man, It
Is known that many subterfugeS
are utilized to overcome this ex.
change opposition.