The Washington times., 1930-10-27
'CHANGE.'
SEATS DROP
IN YEAR
Value of Membership on "Big
Board" Declines so Per
Cent Since Peak in 1929
BY EDWARD DIXON

BY EDWARD DIXON
Exactly one year has passed
since the first avalanche Of sell
ing orders poured into the stock
market, writing "Finis" to the
long cyce Of what is generally
known as the Coolidge Bull
Market"
Since October year ago stock
market values have deprecated
approximately SO per cent. And
wi decline In stock values there
has come a decided falling off in
activity in the market.
Customers rooms, once jammed
to the doors by those eager to
make a killing" are now com.
paratively empty. The daily
markets Of three and four million
sh~re turnovers are, for the time
being at least, thing of the past.
1t is only natural that the
vs-'!e of a membership in the
New York Stock Exchange should
show a material depreciation
from the peak levels Of 1929.
Seats Off so Per Cent
Amembership in the exchange
W recently transferred for a
price of $217, 900. Last year the
high point reached was $625, 900,
attained Immediately prior to the
isuSance Of the rights" Even
allowing for the deduction Of the
rights" which at the high level
had a value Of approximately
$125 900, the low point attained
this year represents decline Of
close to go per cent.
Thus far this year 110 member
ships or slightly less than 10 per
cent of the total enrolment, have
changed hands at prices ranging
from the low of $217 900 to $780,
600. reached in May.
OF the 110 transfers made this
year ten were consummated dur
ing the current month. And there
are IL more to be transferred.
1t is interesting to note that the
greatest portion Of the decline in
values of Stock Exchange seats
has occurred this month and in
September. Both these months
witnessed declining stock prices,
with the current month seeing the
low levels Of last November
broken.
Membership in the New York
Stock Exchange has long been
considered one of the most lucra-
tive investments. Yet, figured on
what the average bushes man
would expect to receive, which is
usually around 10 per cent of the
money put into an enterprise, the
current price for a membership
would give a return of only
slightly better than $21.700 an
nually when allowance is made
for annual dues, which are rela-
lively high, the return on the in
veStment is considerably less.
The present trend of declining
values for Stock Exchange mem
bers.1ips accompanying a similar
movement in stock prices is not
uncommon.
Down to S77,5OO in 1921
In 1921, the last previous de-
preston year, the cost of mem
bership on the New York Stock
Exchange touched a low Of $77,-
500, compared with a high Of
$115,0O reached in 1920. In
1914, the year the Stock Ex-
change was closed for several
months, low of $4,000 was
reached, against high Of $500
in 1913, and a peak Of $74,000
in 1912. In 1907 the low point
was $4,000, against a high OF
$4,000 in 1906.
In all of these periods there
has not only been a decline in
stock values, but a substantial
let.down in trading activity. It
is this latter phase which is as
much responsible for the deprecia-
ton in the price Of stock ex-
change memberships as is the de-
clining stock market. Probably
more. One has to go back
no further than last fall to
realize that even in declin-
ing market the value of a stock
exchange membership was high.
This was due to the record
breaking activity. With the sub
sequent falling off in activity
and the possibilities for an imme-
date increase in business, that
is, stock market business. being
reduced to almost a minimum.