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Jones & Baker 




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308 

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Box 615 Jones & Baker. 

The history of the New York ciirb; an authen- 
tic vrord picture of the famous open-air stock 
market from its origin to the present day. 
[New York J Jones & Baker, cl916. 
14 p. fold, plate, 15^ x 8^". 



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FILMED BY PRESERVATION RESOURCES, BETHLEHEM, PA. 




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)ones & Baker 
1916 



7ke 

Hi si or 1^ 

of me 

NevOl/ork 
Cur Jo 




An w/tuth^ntic 
Vopd Pictupo 
o^thg FaiTvpus 
Open::4ip Stock 
Maeket j^goHv its 

Ppesent Day. 

Copyr»i<^Ki 1916 

JONE56 BAKER 




EN first met to 
buy and sell 
stocks in the 
open air. There 
is something about the 
great out-of-doors that 
inspires purpose in the 
blood and gives courage 
and determination to the 
mind and heart. And so, 
through the ages, markets 
may come and markets 
may go, but — like Tenny- 
son's Brook — The Curb 
"goes on forever." 



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a. 

CO 



The First Market: 

rn HE First Congress of the United Statci, 
J while in session in Federal Hall on 
Wall Street, New York, in 1788-89, author- 
ized and subsequently issued bonds (then 
called stock) amounting to $80,000,000 for 
the purpose of discharging debts incurred 
by the Continental Congress and the vari- 
ous colonies. This naturally led to orders 
for the purchase and sale of these bonds 
bcinj? sent to New York. These orders 
first came to merchants, attomejrs-at-law, 
and others, but later as the transactions in- 
creased some men began to give special 
attention to this business, becoming the 
first brokers in America. 

The New York Stock Exchange 
Board: 

IN March, 1792, the leading brokers ef- 
fected an agreement by which the trad- 
ing was limited to those recognized by the 
organization which had become known as 
the Stock Exchange. These brokers, ac- 
cording to traditicmy met in the open under 
a spreading buttonwood tree located be- 
tween 68 and 70 Wall Street. This was 
continued until 1817, when quarters were 
taken in the Tontine Coflfee House. The 
organization was further perfected at this 
time and became officially known as tibe 
New York Stodc and Exchange Board. 

When the Merchants' Exchange Building 
was completed in 1827, the Stock Exchange 



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secured space which was occupied until 
the building was destroyed by fire in 1835. 
Quarters were then taken in the Jauncey 
Building, which were maintained until the 
completion of the New Merchants' Ex- 
change Building in 1842. In 1854 larger 
space was secured in the Corn Exchange 
Building. Two years later new quarters 
were taken in Lord's Court, which were 
occupied until 1865, when a private corpor- 
ation built a special building at 10 to 12 
Broad Street This building was subse- 
quently taken over by the Stock Exchange, 
and upon this site and adjoining pr<^erties^ 
•ecured in 1879, the present building was 
erected. 

The New York Stock 
Exchange: 

THERE had developed in the meantime 
a coterie of brokers who met in what 
was known as the "Coal Hole," a basement 
adjoining the Stock Exchange. In 1864 this 
group of brokers was welded into an or- 
ganization known as the "Open Board of 
Stock Brokers." Later, in May, 1869, the 
New York Stock and Exchange Board and 
the Open Board of Stocjc Brokers were 
merged into the present New York Stock 
Exchange. 

There was need, however, for an or- 
ganization for the handling of the unlisted 
securities which had previously been han- 
dled by the Open Board, and there arose 
almost immediately an outside market 



known as the Unlisted Securities Market 

This market, in the latter part of 1881, fol- 
lowing the boom resulting in the resumption 
of specie payments, assumed very large 
proporticms. The New Ycwrk Stock Ex- 
change sought eventually to control this 
market, and failing to accomplish this pur- 
pose, required its members to withdraw 
from the organization. As a result the 
New York Mining Stock Exchange and 
i3m Petroleum Consolidated Stock Ex- 
change, which were units of this market 
were merged in 1885 into tfie Consolidated 
Stock Exchange. This organization soon 
established a listed department similar to 
that of the New York Stock Exchange. 

The Outside Market Again: 

k S the New York Stock Exchange and 

the Consolidated Stock Exchange con- 
fined their trading to listed stocks there 
again arose the necessity for an "outside 
market" This developed on the "Curb," 
just outside die New Yoric Stodc Exchange 
entrance on New Street and subsequently 
on Broad Street. No definite date of or- 
igin of the "Curb market" can be fixed, 
for, as previously indicated, an open or 
outside market has existed in one form or 
another since 1778. 

It is interesting to note that all of the 
great markets — notably the Lond n Stock 
Exchange, the Berlin Stock Exchange and 
the Paris Bourse--^were wiginally ^^open" 
markets. It is also significant that each of 



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these organizations has indirectly affiliated 
with an organization similar to the "Curb" 
which meets in the open for the purpose 
of trading in securities not listed by the 
Exchange. 

Origin of New York Curb 
Market: 

A I-THOUGH no definite date can be 
given for the origin of the present 
New York Curb Market, it is, however, 
generally placed at 1873, when E. E. Men- 
dels, who subsequently became known as 
the "Father" of the New York Curb Mar- 
ket, effected a personal agreement under 
. which he and three or four other brokers 
! dealt in unlisted securities. This was 
previous to the Unlisted Securities Market 
which disorganized following the organi- 
zation of the Consolidated Stock and Petro- 
I leum Exchange. 

i The New York Curb Agency: 

FINALLY in 1908, following the boom 
and subsequent panic of 1907, Mr. 
Mendels formed, by the unaninH>us consent 
of the brokers doing business on the Curb, 
the New York Curb Agency. A listing 
department was established and for a 
nominal fee, legitimate enterprises were 
listed and admitted to trading. It was Mr. 
Mendels' idea that the chief function of 
the organization should be publicity, so 
that brokers and their customers might be 



protected from the notorious "wild-cat- 
ting" that had existed unavoidably through- 
out the boom of 1906 and 1907. 

The New York Curb Market 

Association: 

'T' HE Curb Agency, having proved so 
• successful, was re-organized in 
March, 1911, as the New York Curb Mar- 
ket Association, and Mr. Mendels became 
its first Secretary. Mr. J. L. McCormadk 
was elected chairman, and served until 
June 29, 1914, when Mr. Edward R. Mc- 
Cormack, the present chairman, was 
elected. Following the death of Mr. Men- 
dels in Octc^r, 1911, Mr. Franklin Leon- 
ard, Jr., was elected Secretary, in whidi 
capacity he served until he resigned to be- 
come the Association's Attorney. He was 
succeeded August 1, 1914, by Mr. A. B. 
Sturges, the present Secretary. 

The organization of the New York Curb 
Market Association is similar to that of the 
New York Stock Exchange. It has a con- 
stituti(H], rules and regulations for listing, 
trading and doing business practically 
identical with those of the Stock Exchange. 
In fact, the Curb Association is a "little 
board." 

The New York Curb Market Associa- 
tion, like its predecessor the Agency, is 
pledged to a policy of publicity to the end 
— ^that the public may get a "square deal.** 

Unfortunately it cannot regulate all of the 
dealings on the Curb, for, being a public 



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market, anyone, whether a member of the 
AssociatifMi or not, may buy or sell securi- 
ties of any description there. As a matter 
of fact, however, such traders do not usu- 
ally continue long, as they are not offi- 
cially recognized in dealings by the mem- 
bers of the AssodaticMd now totaling 333 
names. 

Stock Exchange Houses Repre- 
sented on the Curb: 

THERE is no direct connection between 
the New York Curb Market Associa- 
tion and the New York Stock Exchange, 
but there is an indirect relation by which 
the two organizations co-operate for their 
common good. Most of the prominent 
Stock Exchange houses have one or more 
representatives who are members of the 
New York Curb Market Association, and 
in some instances Curb trading; forms a 
large part of the volume of business trans- 
acted. 

Functions of the Curb Market: 

HE NEW YORK CURB MARKET 
\ is, in other words, a recognized in- 
stitution of icmg standing, performing a 
four-fold function: (1) It provides a mar- 
ket for issues of companies during the pre- 
liminary period of organization and dur- 
ing reorganization. These stocks are 
traded in "when issued" until the organi- 
zation or reorganizaticm is perfected. (2) 
A market for stocks of companies in the 
development or "trying out" stage, a 



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period during which stocks possess their 

greatest speculative possibilities.^ (3) 
market for mining stocks, oil and industrial 
concerns that for various reasons do not 
care to list their stocks on the Stock Ex- 
change. (4) A market for the Standard 
Oil stocks, none of which has ever been 
listed and traded in on the Stock Exchange. 

Expansion of the Curb^s 
Business: 

THE growth of the Curb Market has 
been gradual and of a permanent 
nature. The volume of trading by years 
since 1911 follows: 

iNOUSnaAL SECURmES 

1911 $1,356,651 

1912 4,295,415 

1913 2,281,246 

1914 2,253,689 

1915 20,073,768 

Mining Stocks 

1911 $11,772,314 

1912 12,689,773 

1913 10,576,792 

1914 11,004,172 

1915 41,158,026 

Oil Stocks 

1911 $4,567,233 

1912 4,987,454 

1913 5,623,946 

1914 2,984,567 

1915 8,976,443 

Bonds 

j 1911 $74,517,000 

1912 35,093,000 

1913 26,582,000 

1914 27,615,200 

1915 60,748,250 



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The New York Curb is now the second 
greatest security maricet in the world in 
point of volume of business transacted. 
This is due in part to conditions which 
have restricted trading on die European 
Exchanges, but the greater interest now be- 
ing manifested in mining and independent 
oil securities has also been an important 
factor* 

Listings Show Curb^s Import- 
ance: 

T^HERE are formally listed by the Curb 
Association at the present time 184 
Mining stocks; 86 Industrials; and 19 Oil 
securities, the largest number in the history 
of the Associaticm. It is significant that 
the number of industrials now officially 
listed has more than doubled during the 
past year. This is convincing proof of the 
growing importance of the Curb Market. 

In addition to the stocks listed by the 
Curb Association there are over 100 stocks 
traded in, which are listed on the Toronto, 
Salt Lake, Boston, San Francisco, Spokane, 
Denver and other Mining and Stock Ex- 
changes. These are stocks which, by reason 
of their merit, have attracted nation-wide 
attention and have, therefore, found their 
vay to the New York Curb. 



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Character of Stocks Listed and 
Traded In: 

THE fact that the mining stocks that 
are listed on the Stock Exchange al- 
most without exception have made their 
debut on the Curb, is an indication of the 
character of the stocks listed and traded in 
on the Curb. Notable anumg these are 
Kennecott, Green-Cananea, Alaska Gold, 
Nevada Consolidated, Chino, Alaska Juneau, 
Chile Copper, Inspiration and Miami. It 
is also noteworthy that in most cases 
the larger part of the market appreciaticm 
occurred in the period when the stocks 
were being traded in on the Curb. 

Further proof of the worth and stability 
of the leading Curb stocks is that the 
dividend-paying mining stodcs now being 
traded in, yield investors an average re- 
turn of 18%, figured on the basis of mar- 
ket prices and prevailing dividends. 
Among the speculative stocks there have 
been many which have yielded traders 
enormous pn^ts — notably United Verde 
Extension — which in less than two years 
sold from 36 cents up to $40 a share; and 
Electric Boat, which in six months advanced 
from $6 a share to $500. 

Broad Street^ Curb's Location: 

HE present trading place of the Curb 
Market is in the middle of Broad 
Street, a block and a half south of Wall 
Street and the Stock Exchange. Here 



every business day of the year may be 
seen a group of over 300 men, who are 

actively participating in the trading. No 
one who visits New York should fail to see 
this remarkably interesting sight 

The brokerage houses are for the most 
part located along Broad Street overlook- 
ing the Curb. Quotations are secured and 
trades made either by a system of signal- 
ing or by private telephones to the Curb 
with which most of the houses are equip- 
ped. 

The Curb a Public Market: 

T HE trading is public and the transac- 
^ tions are posted on the boards of those 
houses maintaining board rooms; and by 
those having branch offices transmitted over 

private wires to the board rooms of their 
branches located in other cities. 

The Curb Association Office: 

THE CURB ASSOCIATION maintains 
offices in the Broad Exchange Build- 
ing at 25 Broad Street, where the data re- 
quired of the various companies whose 
stocks have been listed, are filed for public 
examination and reference. The officers of 
the Curb Association are well and favor- 
ably known in financial circles, and with 
the aid of the members, are building 
month by month and year by year, a 
bigger, better New York Curb. 



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JB 104 



INTENTIONAL SECOND EXPOSURE 



THE NEW YORK CURB MARKET 




■ ■ ■.- /- V. ' 



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JONES & BAKER 



Stock Brokers 

COMPLETE SERVICE INCLUDES 

1st: AN INFORMATION BUREAU, 

covering the principal mining, oil and 
industrial centers. 

2d: A STATISTICAL DLPARTMLNT, 
maintained to furnish dependable ' 
stock data» through rqports» bulletins 
and correspcmctence. 

3d: A WEEKLY NEWS LETTER, 

containing quotations, dividend dec- 
laraticxis, market conunents and the 
latest important devekH>m^its. 

4th: DIRECT PRIVATE WIRES, 

between New York, Chicago, Boston, 
Philadelphia and Pittsburgh for the 
prompt and accurate execution of 
orders. 

5th: COMMODIOUS CUSTOMERS' , 
ROOMS, where continuous quotat- I 
ions are shown for the convenience 
of customers. 

^'NOTHiNQ TO SELL BUT SERVICE'' i 

Jones & Baker confine their opmations strictly I 
to executing th^r customers' orders on a 
commissk>n basis. They are not interested in 
any mining or other company. They handle 
no promotions or specialties and uriderwrtte 
no securities. They are ther^ore, always in 
a position to give customers impartial and 
unprejudiced information. 



WtiU or Hrisit the nearest office* 

NEW YORK 

50 Broad Street 505 Fifth Avenue 



29 So. La Salle St. 

PHILADELPHIA 
Widener Buikiing 



CHICAGO 



BOSTON 
68 Devonshire St. 

PITTSBURGH 
320 Fourth Avenue