The question of the commission charged to the public by the brokers was
brought before the Commissioners, but they refused to report in favour
of an official fixed tariff, or against sharing commissions with
runners, or against the practice of taking a double commission on
certain transactions; but they expressed the opinion that where the
commission was so divided, or a double commission was so earned, the
client should be informed of the fact. As has been shown, this question
of double commissions is closely connected with the question of the
distinction between the broker and the jobber, and this distinction met
with entire approval in the Commissioners' report.
On the vexed question of dealings in shares before allotment, the
Commission gave the Stock Exchange Committee the credit of having done
all that could be expected to cope with it. The Commission attributed
the scandals which had arisen, however, to the system under which the
Committee first permitted such dealing to take place, and then, when
unfair advantage was taken of the permission, refused to enforce the
completion of the deals by fixing the special settlement. The Commission
had been informed by the representatives of the Stock Exchange that
although the Committee would persist in enforcing the fulfilment of
bargains in shares before allotment, as debts of honour, even although
such bargains were declared by the law of the land illegal, yet, if they
were so declared, the rules of the Stock Exchange would be made to
conform to the new law. Accordingly the Commission recommended
legislation prohibiting dealings before allotment under sufficient
penalties--a recommendation which it has hitherto been found
impracticable to adopt.
Public-domain text, read in full here on John Shaqi.
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