his name and the date upon which the stamp is attached or used. He must also cut or perforate the stamp in a substantial manner so that it cannot again be used. A failure so to do renders the party guilty of a misdemeanor.

16. Under no circumstances may a stamp erroneously attached to a certificate or memorandum be removed. An adequate remedy in such cases, in the nature of a refund, is provided by section 280 of the act.

17. Every broker is required to keep a just and true book of account in the form prescribed by the Comptroller wherein shall be plainly and legibly recorded in separate columns:

(a) The date of making every sale, agreement to sell, delivery or transfer of shares or certificates of stock.

(b) The name of the stock and the number of shares thereof. (c) The face value thereof.

(d) The name of the seller or transferrer.

(e) The name of the purchaser or transferee.

(f) The identifying number of the bill or memorandum of sales as provided by section 270.

These books must be kept for a period of at least two years subsequent to the date of such entry made therein and are subjected to examination by the Comptroller or his representative at all times between 10 A. M. and 3 P. M. (Saturdays, Sundays and legal holidays excepted.)

18. Every corporation or its transfer agent shall keep a just and true book of account in the form prescribed by the Comptroller wherein shall be plainly and legibly recorded in separate columns: (a) The date of making every transfer of stock.

(b) The name of the stock and the number of shares thereof. (c) The serial number of each surrendered certificate.

(d) The name of the party surrendering each certificate.

(e) The serial number of the certificate issued in exchange therefor.

(f) The number of shares represented by said certificate.

(g) The name of the party to whom said certificate was issued. (h) The evidence of the payment of the tax as provided by sec

tion 276.

It shall also keep and retain a stock certificate book and all surrendered or canceled shares of certificates of its stock and memoranda relating to the sale thereof for a period of two years from the date of the delivery thereof.

All such books and papers are subject to the examination by the Comptroller or his representative at any time between the hours of

10 A. M. and 3 P. M. (Saturdays, Sundays and legal holidays excepted.)

19. It is imperative that these books, records and memoranda be kept and retained strictly in the form and manner provided by the statute and severe penalties are imposed for a failure so to do.

20. Severe penalties, civil and criminal, are also provided by the act for the illegal sale or use of stamps, for the removal or re-use thereof, for the failure to pay the tax imposed and for the violation of the other requirements of the statute. Furthermore, the failure to pay the tax constitutes an absolute defense to an action to recover the purchase price of the stock.

21. Every person, firm, company, association or corporation engaged in whole or in part in the making or negotiating of sales, agreements to sell, deliveries or transfers of shares or certificates of stock, or conducting or transacting a stock brokerage business, shall within ten days after July 1, 1913, or within ten days after engaging in such business, file with the State Comptroller, either in Albany or New York City, a certificate setting forth the name under which such business is or is to be conducted or transacted and the true and real full names of the person or persons conducting or transacting the same, with the post-office address or addresses of said persons, or in the event of a change in the persons conducting such business or change of address, like certificate setting forth the facts shall within ten days thereafter be filed. Such certificate shall be duly acknowledged. A failure to perform this duty is a misdemeanor.

22. Every stock association, company or corporation which shall maintain a principal office or place of business within the state or which shall keep or cause to be kept within the State of New York a place for the sale, transfer or delivery of its stock shall within ten days after April 7, 1914, if such certificate shall not have been theretofore filed, or within ten days after engaging in or maintaining a place for such business, file with the State Comptroller, either in Albany or New York City, a certificate setting forth the name of the company, the place of business and when and where incorporated, or in the event of a change in the persons or change of address like certificate setting forth the facts shall within ten days thereafter be filed. Such certificates shall be duly acknowledged by the president or secretary of the corporation. A failure to perform this duty is a misdemeanor.

23. The Comptroller will be pleased at any time to advise interested parties as to the provisions and requirements of the law.

May 1, 1914.

WILLIAM SOHMER, Comptroller,
State of New York,
Albany, N. Y.

STOCK EXCHANGE BY-LAWS AND RULES1

Stock Exchange Rules for Transaction or Conduct of Business

ARTICLE XX

Hours of Business

SEC. 1. The Exchange shall be opened for the entrance of members upon every business day at thirty minutes after nine o'clock

A. M.

At ten o'clock the Chairman shall announce that the Exchange is open for the transaction of business, and it shall so remain until three o'clock P. M., when he shall announce it to be closed. On half-holidays the closing shall be at twelve o'clock, noon.

SEC. 2. The Exchange shall not be closed at any time between the hours named in the preceding section, except by order of the Governing Committee.

SEC. 3. Dealings upon the Exchange shall be limited to the interval between the hours above named; and a fine of fifty dollars for each offense shall be imposed by the Chairman, upon any member who shall make any bid, offer or transaction before or after those hours. Loans of money or securities may be made after the official closing of the Exchange.

SEC. 4. Dealing upon any other Exchange in the City of New York or publicly outside of the Exchange, either directly or indirectly, in securities listed or quoted on the Exchange, is forbidden; any violation of this rule shall be deemed to be an act detrimental to the interest or welfare of the Exchange.

ARTICLE XXI

Calls

The appointment and arrangement of Calls of Stocks or Bonds shall be under the control and direction of the Committee of Arrangements.

ARTICLE XXII

Contracts Subject to the Rules of the Exchange

All contracts of a member of the Exchange, or of a firm having a member of the Exchange as a general partner, with any other member of the Exchange, or with any other firm having a member of the Exchange as a general partner, for the purchase, sale, borrowing, loaning

1 Article XX of the Stock Exchange Constitution, By-Laws and Rules of the New York Stock Exchange.

or hypothecation of securities, or for the borrowing, loaning, or payment of money, whether occurring upon the floor of the Exchange or elsewhere, are contracts subject to the rules of the Exchange.

ARTICLE XXIII

Bids and Offers

SEC. 1. All bids and offers made and accepted in accordance with these rules shall be binding.

SEC. 2. All offers to buy or sell securities shall be for 100 shares of stock or for $10,000 par value of bonds, unless otherwise stated. Offers to buy or sell specific amounts, other than as above stated, may be made at the same time and may be independently accepted. SEC. 3. Bids and offers may be made only as follows: (a) "Cash," i. e., for delivery upon the day of contract;

(b) "Regular Way," i. e., for delivery upon the business day following the contract;

(c) "At three days," i. e., for delivery upon the third day following the contract;

(d) "Buyer's" or "Seller's" options for not less than four days nor more than sixty days.

Bids and offers under each of these specifications may be made simultaneously, as being essentially different propositions, and may be separately accepted without precedence of one over another.

Bids and offers made without stated conditions shall be considered to be in the "Regular Way."

On transactions for more than three days written contracts shall be exchanged on the day following the transaction, and shall carry interest at the legal rate, unless otherwise agreed; on such contracts one day's notice shall be given, at or before 2:15 P. M., before the securities shall be delivered prior to the maturity of the contract.

On offers to buy "Seller's Option" or to sell "Buyer's Option," the longest option shall have precedence. On offers to buy "Buyer's Option" or to sell "Seller's Option," the shortest option shall have precedence.

SEC. 4. All contracts falling due on holidays or half-holidays observed by the Exchange shall be settled on the preceding business day, except that when two or more consecutive days are holidays or halfholidays, contracts falling due on other than the first of such days shall be settled on the next business day.

Loans of money or securities made on the day preceding a holiday or half-holiday observed by the Exchange shall mature on the succeeding business day, unless otherwise specified.

SEC. 5. Bids or offers shall not be made at a less variation than one-eighth of one per cent.

SEC. 6. Bids and offers shall be made on the basis of a percentage of the par value of the securities dealt in, unless otherwise ordered by the Governing Committee.

SEC. 7. Any member violating any of the above provisions of this Article shall be fined by the Chairman in an amount not exceeding twenty dollars; for a repetition of the offense, he shall be liable to suspension for a period not exceeding ten days.

SEC. 8. Fictitious transactions are forbidden. Any member violating this rule shall be liable to suspension for a period not exceeding twelve months.

SEC. 9. No offers to buy or sell privileges to receive or deliver securities shall be made publicly at the Exchange, under penalty of a fine of twenty-five dollars for each offense.

ARTICLE XXIV

Comparisons-Liability on Contracts

SEC. 1. It shall be the duty of every member to report each of his transactions as promptly as possible at his office, where he shall furnish opportunity for prompt comparison.

SEC. 2. It shall be the duty of the SELLER to compare, or to endeavor to compare, each transaction at the office of the Buyer, not later than one hour after the closing of the Exchange. Nothing in this Article shall be construed to justify a refusal to compare before the closing of the Exchange.

SEC. 3. It shall be the duty of the BUYER to investigate, before 10 o'clock A. M. of the day after the purchase, each transaction which has not been compared by the Seller.

SEC. 4. Neglect of a member to comply with the provisions of Section 1 or 2 hereof shall render him liable to a fine not exceeding fifty dollars, to be imposed by the Committee of Arrangements.

SEC. 5. Comparison 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.

An exchange of Clearing-House tickets shall constitute a comparison.

SEC. 6. Should a difference be discovered in an attempt to compare, the exact liability of the disputants shall be promptly established by purchase, sale or mutual agreement.