Page:The New International Encyclopædia 1st ed. v. 18.djvu/678

* STOCK EXCHANGE. 582 STOCK EXCHANGE. on the New York Stock Exchange has far ex- ceeded that transacted in any other institution of the ■world. Following is the unofficial record of sales in that institution during a series of years : ments have, however, been allowed since 1885 to obtain a place in what was called the 'un- listed department.' Since stocks in this depart- ment enjoy all the facilities of 'listed stocks,' the discrimination has been entirely futile. List- 1902. 1901. 1900. 1899. 1898. 1897. 1896. 1895. 1894, 1893 Stocks $188. 266, 138, 176, 112, 77 54 66, 49, 80, ,503.000 ,944,000 ,380,000 ,421.000 ,699.000 ,324,000 .654,000 .583,000 075.000 977,000 Corporation Bonde S879, 994, 669, 826. 888. 629, 363, 499, 339, 351, 749,000 235.000 159.000 711.000 747.000 ,843.000 ,158.000 ,758.000 ,950,000 ,854.450 Government Bonds $1,378,000 1.892.000 7.012.000 10.582,000 24.581,000 10.394,000 26,494,000 7,480,000 4.345.000 2,143.000 State Bonds $3,675,000 2.502.000 2,082.000 2.013.000 3,642,000 2,004,000 2,284,000 5.:>83,000 10.929.000 3.792,000 Method op Business. Stock exchanges as at present constituted are limited in member- ship and governed by strict rules which cover both methods of business, rates of commission to be charged, and conduct on the floor. The rules governing methods of business in New York prescribe a minimum commission of one- eighth of one per cent, on the face value of securities purchased for outside customers, one thirty-second of one per cent, for purchases made on account of fellow members, and one- fiftieth of one per cent, for- purchases made on the order of another member on the floor. In London commissions vary from Is. per hundred to 2s. 6d, per hundred, according to the nature of the security. The Paris agents de change charge one-fourth of one per cent. In New York the Stock Exchange member may both transact business on the floor of the Stock Exchange and solicit business from outside cus- tomers. In London these functions are divided between the tAvo functionaries known as 'jobber' and "broker,' which correspond roughly to the divisions in other English professions, as, for instance, the barrister and solicitor in law. Members of the London Stock Exchange are for- bidden to advertise ; Xew York Stock Exchange houses advertise freely. Agents de change in Paris are forbidden to solicit outside business. Acceptance of a bid or offer of stock makes the transaction official on a stock exchange and binds each participant to the fulfillment of his bargain. Stocks thus sold must be delivered to the buyer bj- 2:15 P.M. of the ensuing day. The New York Stock E.xchange practices daily set- tlement of such accounts. In London settle- ments are made fortnightly, the bargain being carried for the account, that is to say, on credit, during the intervening period. No security may be dealt in on the Stock Exchange which has not been formally 'listed' by the committee. In New York a statement of the company's condition, with a balance-sheet, is required before li.sting; also proof that proper Stocks Bonds 1902 1901 1900 $533,519,300 923.010,100 443.713.000 525,384,240 700.064,680 257,275,450 S784.032.595 1.642.013.715 620.936.000 1899 704.172.605 1898 1895 628.163.996 143,373 900 facilities for tr.ansfer and registry of shares have been provided, and that with bonds the mortgage has been properly drawn and recorded. Corporations unwilling to make public statc- ings on the New York Stock Exchange in recent years have been as shown in the preceding table, 00 to 70 per cent, being securities issued to re- place others formerly listed. JIembebship Prices and Rules. With the limitation of stock exchange membership title to a seat in the exchange becomes valuable prop- erty. In New York the price of Stock Exchange seats has fluctuated with great irregularity. In 1879 their price was .$9000; they rose to .$20,000 in 1881, and to .$37,000 in 1883." but by 1893 had declined to .$1.5,250. From that price they grad- ually recovered, and in the recent great activity of business reached unprecedented flgures. Dur- ing the 'boom' of May, 1901, they sold for $66,000, and subsequently, in 1902, went as high as $84,000. The price at the opening of 1903 was $80,000. Ownership of a Xew York Stock Exchange seat does not necessarily imply the privilege of the floor; for that the owner must apply in due form to the committee on admis- sions. In the London Stock E.xchange applicants for admission must be recommended by three members of at least four years' standing, who pledge themselves to the extent of £500 apiece to reimburse his creditors in case of his default within four years. If he is of foreign birth he must have been two years naturalized. In Paris, where the number of agents de chmirie is limited to sixty, an applicant must be proposed by his predecessor or that predecessor's heirs, and must be approved by the governing committee and the Minister of Finance. Stock Exchange Se.t as Property. Owing to the peculiar personal nature of a member's rights and privileges, the exact legal status of a seat as a property right is not settled in all jurisdictions. By the general weight of author- ity, however, a seat may be considered as a species of incorporeal property held subject to such rules and regulations as may be adopted by the exchange. This gives a seat an anomalous position in the law of property because of the qualified and restricted character of an owner's rights. As it cannot be transferred except with the consent of the exchange, and to a person acceptable to the latter, it is held that it cannot be seized and sold upon an execution, but it seems settled in most jurisdictions where the question has arisen that a receiver appointed in proceedings supplementary to execution may ap- ply to the court for an order requiring the jud.g- ment debtor to arrange for a transfer of his seat to a person acceptable to the exchange, and apply the proceeds to the satisfaction of the judgment. This may also be done by a judgment