APPENDIX 
615 
of securities the effect will be a diminution in the profits of share- 
holders; to the extent that the issue consists of government bonds, the 
effect will be an increase in public expenditure with all its attendant 
consequences. The ulterior effect of even a simple tax may be 
profound.” 
(VIIIc) When one member of the Exchange (usually a commis- 
sion broker) gives an order to another member to execute, the latter 
(usually a specialist or “two dollar broker”) obtains from the former 
a commission for his services based upon the schedules of minimum 
rates established for such transactions in the Constitution [Article 
XIX, (b) and (c)]. 
When the giver of the order does not give up his own name as a 
principal in the transaction and has the member executing the order 
clear it for him, the higher schedule of rates (b) applies; when he 
does give up his own name as a principal and clears the transaction 
himself, the lower schedule of rates (c) applies. These two schedules 
are as follows: 
Prices 3- 
Lol 
Selling under 50¢........... ... _ 
Selling at 50¢ and above, but under $1.00. . 
Selling at $1.00 and above, but under $10.00.. 
Selling at $10.00 and above, but under $125.00. 
Selling at $125.00 and above . 
Minimum Rates per Share 
‘c N 
nutually agr 
J 
(VIIId) “Chapter XI. Members Dealing for Their Own Account. 
“Sec. 1. No member, while acting as a broker, whether as a Spe- 
cialist or otherwise, shall buy or sell directly or indirectly for his own 
account or that of a partner, or for any account in which either he 
or a partner has a direct or indirect interest, securities the order 
for the sale or purchase of which has been accepted by him or his 
firm or a partner for execution; except as follows: 
‘[Exception (a).] A member who, by reason of his neglect to 
execute an order, is compelled to take or supply on his own account 
the securities named in the order, is not acting as a broker, and shall 
not charge a commission; 
“Exception (b).] A member may take or supply the securities 
named in the order provided the price is justified by the condition 
of the market and provided that the member who gave the order shall 
directly, or through a broker authorized to act for him, after prompt 
notification, accept the trade and report it; 
“[Exception (c).] A member, acting as a broker, is permitted to 
report to his principal a transaction as made with himself when he