648 
APPENDIX 
firms or members from whom or to whom their purchases or sales 
for customers were made. 
In order to stamp out the sporadic but pernicious practice of non- 
member pseudo-brokerage firms who “bucketed” their customers’ orders 
to purchase by not actually executing them at all, the legislature of 
New York State in 1913 enacted into State law this old Stock Ex- 
change custom, in the following terms: 
“The people of the State of New York, represented in senate and 
assembly, do enact as follows: 
“Section 1. Article 86 of Chapter 88 of the laws of 1009, entitled ‘An 
act providing for the punishment of crime’ constituting chapter 40 of the 
consolidated laws is hereby amended by adding at the end thereof a new 
section, to be section 957, to read as follows: 
“ ‘Section 957. Delivery to customers of memoranda of transactions 
by brokers—A person engaged in the business of purchasing or selling as 
brokers stocks, bonds, and other evidences of debt of corporations, com- 
panies, or associations shall deliver to each customer on whose behalf a 
purchase or sale: of such securities is made by him a statement or memo- 
randum of such purchase or sale, a description of the securities purchased 
or sold, the name of the person, firm, or corporation from whom such 
securities were purchased or to which the same were sold, and the day, 
and the hours between which the transaction took place. A broker who 
refuses to deliver such statement or memorandum to a customer within 24 
hours after a written demand therefor, or who delivers a statement or 
memorandum which is false in any material respect, is guilty of a mis- 
demeanor, punishable by a fine of not more than $500. or imprisonment for 
not more than one vear. or both.’” 
While this legislation has undoubtedly assisted in driving out of 
business the old-style bucketshop which actually executed no orders 
at all, unfortunately it has not proved a similar preventive of the 
modern bucketshop which buys legitimately enough for its customers 
but secretly sells out again practically at once; for this reason the 
modern bucketshop can often furnish its victims with legitimate con- 
firmations, although it no longer is carrying the commitments to 
which thev relate. 
(XVd) Commissions charged on transactions effected on the Ex- 
change by its members as brokers are subject to minimum rates as 
provided in the Constitution (Article XIX) as follows: 
ARTICLE XIX 
Commissions 
Dhiigaiion *SEC. I Commissions shall be charged and collected upon 
aid the execution of all orders for the purchase or sale for account 
collect. of others, of securities admitted to dealings upon the Exchange 
and these commissions shall be at rates not less than the rates 
* Ag amended May 13. 1924.