Show L ARANE HOUS k ON ON THE Ti IS PLAN lenn R. R W Waterman terman Believes Goad Work of Nev Concern May He Be Repeated Here a iI Means Me ns to Protect Members From Financial l Reverses The organization of a house clearance-house in connection wit with the Salt Lake Mining and Stock exchange is sug suggested suggested by Glenn R. R Waterman of Goldfield Nev who wio i is in in int the e city today The feature is suggested as a means to better protect m members and custo customers rs of of- the exchange and t the e suggest suggestion on is inspired by the success of the clear clearance ance- ance house ance-house house in Goldfield As s' s is g generally n rally known Salt Lake City eity is o one ie of the best markets for mining for mining stocks in the country The ex ea change was organized several ye years years rs ago ago when th the first firs members did not fully app appreciate the importance of th the great industry which now presents a more more attractive propos proposition tion to investors rs and capitalists the world ove over over- than any of the commercial or industrial stocks SOME RULES HAVE ALREADY BEEN RECOMMENDED RECOMMENCED ED FOR TOR THE ORGANIZATION WHICH IS SOON TO TAKE THE HE PLACE OF OP THE o OLD OLD iD CONCERN THAT IIA HAVE VE FOR TOR AN AN OBJECT T THE E BETTER PROTECTION PROTECTION ROTE TION XION OF PATRONS PATRONS- A AND th THE ADVANCEMENT AD AD- OF OP MINING STOCK TRANSACTIONS UPON WON MORE LEGI LEGITIMATE TIM T LINES OF TRADE DE THESE H SE IT IS HOPED WILL BETHE BE THE MEANS MEANS' OF PLACING THE RESPONSIBILITY smILi TY FOR FOIt THE QUOTATIONS NS AND SALES SALES ENTIRELY ENTIRELY UPON THE EXCHANGE EX EX- EXCHANGE CHANGE AS A BODY RATHER THAN UPON INDIVIDUAL MEMBERS MEMBERS MEM MEM- BERS AND FIRMS Glenn R. R W Waterman terman who is is one of the younger younKer generation of the Waterman Water WaterS man man h house which has successfully c conducted con conducted con con- n. n duct ducted d a mining mininA brokerage business in inthis inthis in inthis this city for years ears is ill hero from Goldfield Goldfield Gold Gold- field on a a vacation Mr Ir Waterman described de do scribed this morning mornin the UtA recent scenes enacted on on the tho Goldfield exchange of which his lis brother Ralph Waterman is is a member when the Goldfield stocks were pounded down and a number of members members mem memo bers were engaged in shorting the stocks As is known th there re was a sudden sudden sud suel- den change f for r the better and some some of the stocks advanced by leaps and bounds while more than one firm on tho short end was forced to retire from business A crash of ofa a. a number of firms was ivas narrowly nar narrowly averted and much m money ney was Rave saved to all who w were re dealin dealing in these stocks by reason of the of-the the establishment of I the stock exchange e clearance house This institution similar is-similar is to the clearance clearance clear clear- ance anCe houses bouRes maintained by bv many plan larJ large c houses banking of the co country Immediately after the lose dose of e each h session o of the Goldfield exchange each ea i broker sends sends-in in hi his hilt sh sheets ets of sales a cs an and purchases If his his' purchases exceed ht hiI 1 sales he ho attaches a check to cover tho the rence and nd jf f th these there re is is a balance ow ow- n nim the clearance hou J gives vel him bint hima a a. che check k for th the excess of f his Jis sales over over o his bis purchases h s tI T These Thesa ss s1 e sheets ts a are e turned turned into tho the clearance house at atthe the close of the session session ses ses- session sion and before be he is paid back any money every check is taken to the banks by the clearance house manaJ manager r and certified to by the banks upon which they are drawn thus insuring the clearance house from loss In In Inthe the tote case of sales made on future delivery ry of f ten to ninety da days days- s the seller and buyer uyer are made to deposit a L j certified check for fOT 33 13 3 per cent cenk of the buying or selling price and these margins are kept up bv by either th the buyer buy buy- buyer for er er or the seller as all the market fluctuates fluctuate s. s In this manner every everyone one is protected If If Ifa a a member can not keep up his margins margins mar mar- gins h he ha must turn the stock into the clearance house If on the tho other hand his bank hank will not certify to the checks that he has has' turned into the clearance house ho he m must mast st make the transaction good in cash rash before he is permitted d to tr transact b business siness on the floor o of the exchange exchange exchange ex ex- change again This detailed work nece necessitates the incurring of some expense on the part of the mining exchange but the money thus spent is is- for the good of the entire membership Mr Waterman believes belieVe as it makes members careful in their trading and prevents much wildcatting wildcatting wildcatting wildcat ting on the part of both members and patrons on en the exchange As an illustration illus mus of this method every firm finn that was vas embarrassed embarras ed by the recent nt advance in Nevada mining stocks ill ii again engaged engaged engaged en en- in business and no no noone one who was trading with these fi firms s lost money monty All Members Satisfied rule has been strictly enforced b by bythe the Goldfield exchange since last February ary and though some o members l did not not- like t the proposition i when e first Introduced t c they all agree recent test teet case that It is an excellent method and has been every changer y t part Ft of the he heo heo o of country o showing that patrons he a the mining from exchange Is responsible for or the Individual transactions of or Its patrons The business Is thus closed up e every ery twenty twenty four tour hours for tor all stocks and checks that are arA turned Into the clearance house are ready for delivery before the reopening of or the exchange the following morning The rule Is rigidly enforced for f every member ember m regardless a I of his financial standing Sonic Some objection ma may be raised to this method locally as some members argue that I It takes s more money than a great many I of l the st t traders s to place Ia In Inthe inthe the business Other members consider that this would be the means of ot holding down members to their financial caliber and prevent any anyone one on on the exchange from doing business on a shoe string as it were were and thus thuR run the risk of ot embarrassing embarrassing embarrassing em em- either himself or his custom custom- ers X |