APPENDIX 
639 
Sec. 1. It shall be the duty of every member to report each of his trans- 
actions as promptly as possibly at his office, where he shall furnish oppor- 
tunity for prompt exchange of tickets or comparison. 
Sec. 2. An exchange of tickets shall be made in the manner required 
by the By-Laws and Rules of the Stock Clearing Corporation and shall con- 
stitute a comparison. In all cases in which an exchange of tickets or 
special contract exchange tickets is not so required, comparisons shall be 
made by an exchange of an original and a duplicate comparison ticket; 
the party to whom the comparison ticket is presented shall retain the 
original, if it be correct, and immediately return the duplicate duly signed. 
Sec. 3. It shall be the duty of the SELLER to exchange tickets or 
to make comparison in respect to each transaction at the office of the 
BUYER. ..evveeereensans 
Sec. 7. The neglect or failure of a member to exchange tickets on a 
contract in cleared securities as defined in the By-Laws and Rules of the 
Stock Clearing Corporation, which contract is to be cleared through said 
Corporation, shall constitute a default;....... 
Sec. 9. No exchange of tickets or comparison or failure to exchange 
tickets or to compare, and no notification or acceptance of notification, such 
as notification of failure to receive or failure to deliver, shall have the 
effect of creating or of canceling a contract, or of changing the terms 
thereof, or of releasing the original parties from liability ;..... .ceeenen 
Sec. 10. The price at which an order is executed on the Exchange shall 
be binding, notwithstanding the fact that an erroneous report in respect 
thereto may have been rendered; and no member shall assume or pay any 
part of the difference between the price at which an order is executed and 
‘he price at which it may have been erroneously reported. 
(XIIc) The severest test of the Night Branch machinery in 
recent years arose during the 1929 panic. Since the Night Branch 
security clearance is necessarily the first step in the whole process of 
~learance and settlement under the Stock Clearing Corporation, any 
delay here tends to delay all subsequent parts of the work. At times 
during the 1929 panic the Night Branch clerks could not obtain the 
sheets and tickets necessary for clearance from the members until 
late into the night, and accordingly they were compelled to sleep in the 
Night Branch offices and for the first time in many years do their 
work in the day time. In his address, “The Work of the New York 
Stock Exchange during the Panic of 1929,” (Boston, June 10, 1930) 
President Richard Whitney stated: 
“A further difficulty arose in connection with the operation of the 
Stock Clearing Corporation, through which contracts made on the 
oor are regularly cleared and settled. When the Clearing Corpora- 
tion was originally organized in 1920, the terrible lessons of 1907 were 
kept clearly in mind, and the institution was designed to operate safely 
in critical stock market periods. This wise foresight yielded invalu- 
able results in the supreme test which occurred last autumn. Indeed,