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change employees and assists them in improving their business status, 
and continuing their education. For the latter purpose the Department 
organized the “New York Stock Exchange Institute” which regularly 
conducts lectures and class-room exercises in finance, economics, and 
related subjects for the benefit of Exchange employees. The Depart- 
ment also maintains an employment office through which not only the 
Exchange but also its members can secure employees. Frequently 
Exchange firms recruit their office forces from young men trained 
in this way in the service of the Stock Exchange itself. The intensely 
human and progressive policy carried out by the Personnel Depart- 
ment would deserve extensive comment in any but an economic study 
of the Exchange system like the present; special information con- 
cerning the Department’s work can, however, be readily obtained 
from its annual reports, copies of which can be secured from it upon 
application. 
CHAPTER IV 
The Distribution of Securities 
(IVa) Owing to the comprehensive and searching analysis of new 
security issues applying for listing made by the Committee on Stock 
List, fraudulent security promoters always give the New York Stock 
Exchange a wide berth. Naturally, the Exchange has no contact 
with or responsibility for the security swindling by “fly-by-night” 
promoters which occurs sporadically all over the country, and espe- 
cially perhaps in centers far from New York. Nevertheless such 
swindles seriously injure the legitimate security business, and in any 
case the Exchange has not wished to play the Pharisee in regard to 
so iniquitous and harmful an evil. 
In 1922 the New York Stock Exchange played the principal part 
in financing the establishment of the Better Business Bureau of New 
York, as a permanent fraud-detecting and fraud-fighting agency. In 
1924, Mr. E. H. H. Simmons, President of the New York Stock Ex- 
change, inaugurated a national campaign against security swindling, 
which was endorsed by President Coolidge. The cooperation of the 
Federal Government in Washington (especially through the Inspectors 
of the U. S. Post Office Department), of the Securities Commissioners 
of the various States of the Union, of local prosecuting officials, and 
of Stock Exchange firms, banks, and other private financial firms, was 
obtained. In addition, the Exchange established a Fraud Bureau in 
its own organization, to cooperate with other parties interested in 
suppressing frauds by exchanging information and striving to obtain