proper and adequate margin may constitute an act detrimental to the interest and welfare of the Exchange, and the offending member may be proceeded against under Section 8 of Article XVII of the Constitution. "That the improper use of a customer's securities by a member or his firm, is an act not in accordance with just and equitable principles of trade, and the offending member shall be subject to the penalties provided in Section 6 of Article XVII of the Constitution. "That reckless or unbusinesslike dealing is contrary to just and equitable principles of trade, and the offending member shall be subject to the penalties provided in Section 6 of Article XVII of the Constitution, in every case in which the offense does not come within the provisions of Section 5 of Article XVI thereof." Sales With no Change of Ownership. FEBRUARY 5, 1913. Resolved, That no Stock Exchange Member, or member of a stock Exchange firm shall give, or with knowledge execute, orders for the purchase or sale of securities which would involve no change of ownership. The punishment for this offense shall be as prescribed in Section 8 of Article XXIII of the Constitution regarding fictitious transactions. PART V LAWS OF THE STATE OF NEW YORK RELATING TO STOCKBROKERS Penal Law (L. 1909. chap. 88. Consol. Laws, chap. 40.) SEC. 295. Receiving deposits in insolvent bank.—An officer, agent, teller or clerk of any bank, banking association or savings bank, and every individual banker or agent, and every private banker or agent and any teller or clerk of an individual banker, or of a private banker who receives any deposit, knowing that such bank or association or banker is insolvent, is guilty of a misdemeanor, if the amount or value of such deposit be less than twenty-five dollars; if the amount or value of such deposit be twenty-five dollars or over, such person shall be guilty of a felony, punishable by imprisonment for not less than one nor more than five years or by a fine of not less than five hundred nor more than three thousand dollars, or by both. Source.-Penal Code, Sec. 601, as amended by L. 1902, ch. 148. Application of section. - Cragie v. Hadley, 99 N. Y. 131 (1885); Atkinson v. Rochester Printing Co. 114 N. Y. 175 (1889); Hall v. Baker, 66 App. Div. 131, 135, 72 N. Y Supp. 965 (1901). |