Seat Prize

The first New York Stock Exchange seat to be sold since the adoption of the 25% membership increase brought, last week, $625,000, the same figure as for the last seat sold prior to the increase. But last week's purchase included the seat with its extra one-fourth right; in other words, five-fourths of a seat was purchased. Thus a precedent was established for valuing each quarter-seat at $125,000 and a seat at $500,000. The seat was bought by Ferdinand A. Straus from Robert L. Leeds, Mr. Leeds purchased his seat early in January, paid for it $600,000.

Inasmuch as the Straus purchase was for five-fourths of a seat, there still remained the question of what quarter-seats, sold separately, would bring. The bear market caused by the Federal Reserve's attack on speculative loans (see p. 47) may well lower seat prices since speculation by the general public is always on a bull market. A bear market generally means less trading for seat-holder, fewer commissions.