of the rules for conduct of business, etc.; the control and regulation of quotation service and telephone and telegraph connection with the Exchange, the appointment of employees, etc.1

Second: A Committee on Admissions, consisting of fifteen members, whose duty it is to consider applications for membership and reinstatements. Re-admission or reinstatement may be had upon the consent of twothirds of the members of the Governing Committee present when the application therefor is considered.2

Third: An Arbitration Committee of nine members. They investigate and decide all claims and differences arising from contracts subject to the rules of the Exchange, between members or at the instance of a nonmember between members and non-members. Their decision is final, unless an appeal is taken by a member of the committee, or the case involves $2,500 or more, in which case either party may appeal within ten days to the Governing Committee. A non-member, making a claim, must execute an agreement to abide by the rules of the Exchange, and execute a full release of his claims, the latter to be delivered to the defendant or cancelled and returned according to the result of the proceedings.3

1Art. XI.

"The Committee on Admissions is a court of special or inferior jurisdiction. Its jurisdiction must be shown. It is not presumed. Matter of Seymour, Johnson & Co., 37 Misc. 264, 274.

"All claims" here referred to are only those which invoke Stock Exchange transactions.

Bernheim v. Keppler, 34 Misc. 321, 325.

The real parties to an arbitration are entitled to notice and hearing. Morris v. Grant, 34 Hun, 377.

In Heath v. President of Gold Exchange, 7 Abb. Pr. N. S. 251, it was held that the most that could possibly he claimed for the arbitra

Fourth: A Committee on Business Conduct, of five members, whose duty it is to consider matters relating to the business conduct of members with respect to customers' accounts, and to keep in touch with the course of prices of securities listed on the Exchange, with the

tion clause was that it should have the same force and effect as an agreement in writing, made by persons, to submit to the decision of one or more arbitrators any controversy existing between them. Such agreements, until an award has been made, are not binding on the parties. The N. Y. Rev. St. (2 Rev. St. 544, Sec. 23) permitted a party to revoke the powers of the arbitrators at any time before the cause is finally submitted to them for their decision. The court, citing cases, said the section seemed to apply to all cases of submission.

A by-law, providing for arbitration of business disputes, provided for suspension for refusal to submit them after due notification, and for expulsion after a hearing, if the gravity of the offense was deemed to merit it. The by-law was held valid.

Evans v. Chamber of Commerce, 86 Minn. 448.

Where a board provides a tribunal, a member cannot invoke a court of equity without first having recourse to the tribunal, unless, by fraud or otherwise, it refuses to move to a determination.

Pacaud v. Waite, 218 Ill. 138.

Aside from the question of validity of such a rule a member who voluntarily submits claims against him to the arbitration committee of an association and takes two successive appeals from the decision against him assents to the jurisdiction and cannot afterwards question it in a court of law.

Nat. League of Com. Merchts. v. Hornung, 148 App. Div. 355.

The award of arbitrators, within their jurisdiction, is binding upon the parties. The courts will not disturb it for errors of judgment merely, though they will for exceeding the jurisdiction.

Bartlett v. Bartlett & Son Co., 116 Wis. 450.

The decision of an arbitration committee composed of interested persons should not be allowed to stand. In such a case the members should be sent to the courts to determine the controversy.

Moffatt v. Board of Trade (Mo.) 111 S. W. 894.

The omission of arbitrators to be sworn (N. Y. Prod. Exch.) may be waived by appearing before them and arguing the case without interposing objections.

Sonneborn v. Lavarello, 2 Hun, 201.

An exchange has a right to try and discipline a member for action inconsistent with just and equitable principles of trade in failing to comply with a contract made by him outside of and not upon the floor of the exchange.

view of determining when improper transactions are being resorted to.1

Fifth: A Committee on Clearing-House; of five members, which has general charge of the ClearingHouse of the Exchange and its business, and designates the securities to be cleared.

Sixth: A Committee on Commissions, of five members, which enforces the rules relating to commissions, partnerships and branch offices, and reports to the Governing Committee violations thereof or any undesirable partnership or branch office.

Seventh: A Committee on Constitution, of five members, which considers all additions, alterations or amendments to the constitution.

Eighth: A Finance Committee, of seven members, which acts as a Board of Audit and examines the condition of the Gratuity Fund.

Ninth: A Committee on Insolvencies, of three members selected from the Committee on Admissions, which investigates every case of insolvency immediately after

In re Haebler v. N. Y. Prod. Exch. 149 N. Y. 414.

The fact that the board of managers of an exchange has power only to discipline when the member refuses to arbitrate or conciliate does not make the by-law unreasonable,coercive or contrary to public policy. In re Haebler v. N. Y. Prod. Exch. 149 N. Y. 414.

An offer to arbitrate before another Exchange or before non-members is not sufficient to prevent trial and discipline.

In re Haebler v. N. Y. Prod. Exch. 149 N. Y. 414.

Resolution of March 5, 1913. This is entirely new and seems to be the last word in control of members by the Governing Committee of the Exchange. The most rigid and searching inquiry has been made by this committee into various transactions of members, with instant beneficial results. Because of its activities it has been dubbed "The Police Committee."

its announcement, and reports to the Committee on Admissions.

Tenth: A Law Committee, of five members, which considers all questions of law affecting the interests of the Exchange, and is empowered to examine into the dealings of any member.

Eleventh: A Committee on Securities, of five members, which makes rules defining the requirements for regularity in the delivery of securities dealt in on the Exchange, and decides all questions relating to the settlement of contracts, subject to the rules of the Exchange, or to deliveries thereof, and all questions relating to reclamations therefor.1

Twelfth: A Committee on Stock-List, of five members, which considers applications for placing securities upon the Exchange list and reports to the Governing Committee, giving a full statement as to the organization, capitalization, resources, and indebtedness of the applicant. It is empowered to place upon and remove from the list, without report, Government and State or City obligations and subscription receipts. It has charge of the arrangement and revision of the list of securities. It is one of the most important committees of the Exchange,

The committee's jurisdiction of all questions "as to the regularity of stock certificates, bonds, etc. dealt in at the Exchange" embraces questions as to the regularity of the form of bonds; regularity of issue, which includes genuineness; regularity as to being within the list of admissions to the board, and questions of that nature; but the committee has nothing to do with the legality of a tender or delivery of bonds conceded to be regular in all those respects, but refused or objected to on some ground not available against a bona fide holder for value.

Morris v. Grant, 34 Hun, 377.

and exercises its power in a most wholesome and beneficial way. It is constantly obtaining details and report of corporations whose shares find a market on the Exchange and is thus in a position to keep all persons informed as to the general character, conditions and perhaps dealings of any of the companies whose names appear on the stock list.1

Appeals.

The constitution also provides for appeals from the decision of standing committees to the Governing Committee.2

Admission to Membership.

Every applicant for membership in the Exchange must be twenty-one years of age and a citizen of the United States.3

There is no constitutional limit as to the number of members, but it can only be increased by the action of the Governing Committee, which must prescribe the number and terms of admission. This action must be submitted to the Exchange in the same way as an amendment to the constitution.4

The initiation fee on a transfer of membership is $2,000,5 payable on the day of applicant's election."

In England, the Companies (Consolidation) Act of 1908 provides by statute for the collection of the information gathered by this committee. 2Art. XII.

'Art. XIII, Sec. I.

'Art. XIII, Sec. 2.

The present limit of membership is eleven hundred. Of these only about six hundred are active upon the floor of the Exchange.

"Art. XIII, Sec. 3.

'Art. XIII, Sec. 4.