European Stars and Stripes (Newspaper) - February 24, 1959, Darmstadt, Hesse An unusual photograph of the Busy crowded new York Stock Exchange. Only a seat owner is permitted to transact business on the floor. New York Stock Exchange seats a Bull Market memberships going for highest fee in a generation with Price More than doubling since last january by Sam Dawson a staff writer Stock brokers Are enjoying their own Bull Market. And so the Price of seat on the new York Stock Exchange has climbed to the top Price in a generation. At the turn of the Century most heroines of popular fiction were brokers daughters wooed and won by poor but Earnest employees of their fathers firms. The fathers belonged to that Day s most publicized of Rich men s clubs the new York Stock officials pointed out that it admittedly is no longer a Rich Man s club. But at today s prices membership does t make it exactly a poor Man s club either. In january last year a seat sold far $69,000. This january it brought $140,000. There Are 1,366 of them and the owners Are scattered across the country. There Are some 650 brokerage firms with one or More members and some individuals on their with the members Are about 8,100 general partners of firms and these Are called Allied members. If the firm i incorporated general partners Are called voting stockholders and there Are about 3jb& of these also there Are 20,000 registered Only a seat owner can transact Busi Ness on the floor of the Exchange Al though it is cluttered with Many clerks and Exchange that exclusive right is Why seats command a High Price in time of great activity in the Market and Why one brokerage firm has As Many As 13 members two others have 11 each a fourth has 10 and another has 9.how do you go about getting a seat if you want one How much does it Cost to hold onto one there is a Market for seats just As there 18 for stocks in the office of Trie Secretary of the Exchange Sellers Post the figure they want to toe paid and buyers Post a five Day february 24, 1959 figure they re willing to pay. The official will Tell either one the going bid and asked prices but will divulge no names. Where there is a meeting of the minds on a Price the two parties Are brought together. But this does t assure you a seat. First a four Man admissions committee questions the applicant and his two sponsors study his application covering personal his tory and his financial situation. There Are two Cardinal rules 1. He will devote a major portion of his time to the securities business 2. He already is experienced in this business. Then Exchange officials investigate his reputation both personal and All this satisfies the 33-member Board of governors of the Exchange he is voted in becoming a member immediately upon paying the seller for the seat. The buyer can put up his own Money in Cash or he can borrow it or his firm can put it up for him or it can be a gift from relatives or friends. But if the Money in t his outright lenders or donors must sign agreements releasing any claim on the seat it cannot be considered As collateral. Costs go on. The initiation fee is $4,000. Dues Are $750 a year. Members pay $15 each on the death of another member and the family of the deceased gets a$20,000 gift. They also pay $140 a year toward a seat retirement program started in january 1 53 to run through 19r2 with the intent of cutting to 1,300 the constitutional membership total of 1,375. Since the Exchange cannot pay More than $60,000 to retire a seat the program at today s Price is merely any other concern the Exchange has payrolls taxes maintenance costs. So it also gets one per cent of All commis Sions earned by the membership. Altogether it costs a broker about $1,200 a hold a seat. Sales and prices Are recorded on indicators above during trading. Quote room keeps traders informed at to fluctuations in Price. The stars and stripes Page 11
