No Tipping Allowed

In bad odor with large sections of the U. S., the New York Stock Exchange has been cleaning house for more than a year. Last week it swept out a particularly grimy corner. Six members were suspended, for periods ranging from one month to three years, for tipping Exchange employes. All the suspendees were bond traders, members of the foreign bond "crowd" located on the floor of the Exchange but apart from the main body of stock brokers.

Members Seeholzer, Sagar, Schmeltzer, Wurzler, Goerz and Robertson used to tip the employes who carry order slips from the telephone booths along the wall to brokers on the floor. Employes often gather up several orders for the same bond at the same time. It is to a broker's interest to get his order first and also to find out the amount of the other orders. Corrupt employes went first to the broker who had tipped him (or tipped him most), delivered his order, told him the size of the other orders. Opportunity for corruption also exists along the same lines in obtaining quotations. If several firms seek quotations simultaneously, it is to the advantage of a broker to know his competitors' figures so that he can quote a slightly better figure, get the business Alexander J. Robertson of Ludwig, Robertson & Co. received the longest suspension--three years. He had also split commissions with customers (in effect a rebate) contrary to a long-standing Stock Exchange rule.

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