except by permission of the President or the Committee of Arrangements.

SEC. 3. Communications shall not be read to the Exchange without the consent of the President or the Committee of Arrangements.

ARTICLE XXXVIII.

Alterations of the Constitution.

The Governing Committee may make additions, alterations or amendments to the Constitution by a majority vote of all its existing members. Every proposed addition, alteration or amendment must be presented, in writing, at a regular meeting of the Governing Committee, and referred to the Committee on Constitution, which shall report thereon at the next regular meeting of the Governing Committee, or at a special meeting called for the sole purpose of considering it. Action thereon may be postponed to a fixed date by a vote of two-thirds of the members of the Governing Committee present. Such alterations when adopted by the Governing Committee shall be submitted to the Exchange and shall stand as the law of the Exchange, if not disapproved within one week by a majority vote of the entire membership. No alteration of Article XVIII shall ever be made which will impair, in any essential particular, the obligation of each member to contribute, as therein provided, to the provision for the families of deceased members.

RESOLUTIONS ADOPTED BY THE GOVERNING COMMITTEE.

Advertising.

FEBRUARY 9, 1898.

"That in future the publication of an advertisement of other than a strictly legitimate business character, by a member of the Exchange, shall be deemed an act detrimental to the interest and welfare of the Exchange."

Arbitrage Dealings.

FEBRUARY 9, 1898.

"Whereas, The so-called Arbitrage business or trading between this Exchange and that of any other city in the United States, based upon quotations from the floor of this Exchange, has resulted in practically ignoring the commission law; therefore

"Resolved, That in the judgment of this Committee the sending of continuous quotations or quotations at frequent intervals by members of this Exchange, from the floor of the Exchange, is detrimental to the interest and welfare of the Exchange, and that any member engaging

in such business or trading shall be proceeded against under Section 8 of Article XVII of the Constitution;

"Resolved, That the Committee of Arrangements be and they hereby are authorized and instructed to prevent the transaction of any such business or trading by any member of this Exchange, and to prefer charges against any member engaging therein."

Foreign Arbitrage-Joint Accounts.

(To take effect July 1, 1911.)

APRIL 20, 1911.

"Whereas, The so-called Arbitrage business by means of joint account trading between this Exchange and foreign cities, where each party interested charges a commission or allowance, has resulted in practically nullifying the Commission Law; therefore

"Resolved, That any business, domestic or foreign, for the joint account of a member of the Exchange and a non-member, where each party in interest charges a commission or allowance, is hereby pro

ments.

"Resolved, That any business, domestic or foreign, conducted under an arrangement of accounts, not joint account in name, but designed to produce results similar to those of the above described joint account, is hereby prohibited.”

Bids and Offers.

DECEMBER 14, 1898.

"That where parties have orders to buy and orders to sell the same security, said parties must offer said security, whether it be stock or bonds, at one-eighth per cent. higher than their bid before making transactions with themselves."

Rules Covering Bids and Offers.

(Amended May 12, 1911.)

MARCH 30, 1910.

1. That the recognized quotation on stocks shall be public bids and offers on lots of 100 shares.

2. All bids and offers on larger lots shall be considered to be for any part thereof in lots of 100 shares or of multiples thereof, whether so stated in the bid or offer or not.

3. If a bid is made for a larger lot of stock above the price at which smaller lots are offered, or if a transaction is made in a larger lot above the price at which smaller lots are offered, such bidder or buyer shall be compelled to buy any or all of the smaller lots which were publicly offered at the time, at the lower price, up to the amount of the bid for the larger lot. If the bid for the larger lot is accepted, and the

buyer is unwilling to buy more, the seller must give up to the members who were publicly offering to sell at the lower price, such amounts as they were publicly offering to sell at the lower price, if such claim is made immediately.

4. If an offer is made to sell a larger lot of stock below the price which is bid for smaller lots, or if a transaction is made in a larger lot below the price which is bid for smaller lots, such member offering to sell, or the seller, shall be compelled to sell any or all of the smaller lots which were publicly bid for at the time, at the higher price, up to the amount of the offer of the larger lot. If the offer of the larger lot is accepted, and the seller is unwilling to sell more, the buyer must give up to the members who were publicly bidding the higher price, such amounts as they were publicly bidding for, at the higher price, if such claim is made immediately.

5. A member may sell on offer the largest amount bid for without regard to priority of bids. Should the offer be of an amount larger than the largest bid, the balance shall go to the next largest bidder in sequence; bids for equal amounts being on a par.

A member may buy on bids under the same rule.

Attention is directed to the resolution of the Governing Committee adopted October 26, 1892, which reads as follows:

"When a purchase or sale is claimed by a party who states that he had on the floor a prior or better bid or offer such claim shall not be sustained if the bid or offer was not made with the publicity and frequency necessary to make the existence of such bid or offer generally known at the time of the transaction."

7. Disputes arising from a question as to priority of bid or offer, if not settled by agreement between the members interested, shall be settled by vote of the members knowing of the transaction in question.

Disputes as to the application of rules relating to the transaction in question, if not settled by agreement between the members interested, shall be settled by any member of the Committee of Arrangements.

8. The above rules shall not apply to lots of less than 100 shares, nor to active openings when bids and offers are simultaneous.

Members Dealing with Themselves - Specialists

MARCH 30, 1910.

(To take effect April 4, 1910.)

"Resolved, That any member of the Exchange who, while acting as a broker, either as a 'Specialist' or otherwise, shall buy or sell directly or indirectly for his own account, for account of a partner, or for any account in which he has an interest, the securities, the

order for the purchase or sale of which has been accepted by him for execution, shall be deemed guilty of conduct or proceeding inconsistent with just and equitable principles of trade, and shall be subject to the penalties provided in Article XVII, Section 6, of the Constitution.

"The foregoing rule shall not apply to the act of a member who by reason of his neglect to execute an order is compelled to take or to supply on his own account the securities named in the order; in such case the member is not acting as a broker and shall not charge a commission.

"A member, acting as a broker, is permitted to report to his principal a transaction as made with himself, only when he has orders both to buy and to sell and not to give up, and then he must add to his name on the report, 'On order,' or words to that effect."

Bucket-shops

MAY 19, 1909.

"That any member of this Exchange who is interested in, or associated in business with, or whose office is connected, directly or indirectly, by public or private wire or other method or contrivance with, or who transacts any business directly or indirectly with or for, any organization, firm or individual engaged in the business of dealing in differences or quotations (commonly called a bucketshop) shall, on conviction thereof, be deemed to have committed an act or acts detrimental to the interest and welfare of this Exchange.”

Clearing Charges

NOVEMBER 23, 1881.

"That in transactions where orders are received from a nonmember, wherein the broker filling the order is directed to give up another broker or clearing-house, the responsibility of collecting the full commission of one-eight per cent. shall rest with the broker or clearing-house settling the transaction."

OCTOBER 24, 1894.

"That in transactions where orders are received from a member on which a clearing firm is given up by said member or by his order, the responsibility of collecting the full commission of one-thirtysecond of one per cent. shall rest with said clearing firm; and it shall be the duty of the broker who executes such orders to report the transactions to the clearing firm and render to them and collect. his bill therefor at the rate of one-fiftieth of one per cent.; and also that where a broker executes an order for a member and clears the security himself, he must charge one-thirty-second of one per cent."

DECEMBER 28, 1911.

"That hereafter when a member of the Exchange receives and delivers securities for another member, the clearing charge for said service may be a matter of mutual agreement."

JANUARY 24, 1912.

"That the Governing Committee rules that in the matter of clearing charges between members of the Exchange, said charges shall be based upon a stipulated sum of money for each one hundred shares of stock or ten thousand dollars of bonds, or portions thereof." "The payment of a certain sum of money for any period of time for said service, irrespective of the number of shares or amount of bonds cleared, is forbidden."

Clerks in Nominal Positions.

JANUARY 23, 1901.

"That the employment of a clerk or clerks in a nominal position because of the business obtained by such clerk or clerks for their employer, is a violation of the rules. Articles XXXIV and XXXV of the Constitution."

Clerks, Speculative Transactions for.

(To take effect April 4, 1910.)

MARCH 30, 1910.

"That the taking or carrying of a speculative account, or the making of a speculative transaction, in which a clerk of the Exchange, or of a member of the Exchange, or of a bank, trust company, banker or insurance company, is directly or indirectly interested, unless the written consent of the employer has been first obtained, shall be deemed an act detrimental to the interest and welfare of the Exchange."

Responsibility for Accounts-Fictitious Names, etc.

"That every member of the Exchange be required to use due diligence to learn the essential facts relating to every account accepted by himself or by his clerks or representatives, and also relating to the possible use of a name for the account other than that of the party interested."

Commissions.

Reciprocal Business.

APRIL 14, 1897.

"That transacting or offering to transact business in grain, produce, cotton or other commodities, without commission, or for a nominal.