Some Manila stock exchange rules

Media

Part of The American Chamber of Commerce Journal

Title: Some Manila stock exchange rules
Language: English
Source: The American Chamber of Commerce Journal Volume XVII (Issue No.4) April 1937
Year: 1937
Subject: Philippine Stock Exchange; Stock exchanges -- Laws and regulations
Rights
Fulltext: April, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 27 i Quarters in New Wilson Building vice and surplus earnings distribution help greatly by the Governing Committee of the application for two new members at a price of P45,000 each. Those new members are Esteban Parellada, Manila stock broker with offices in the National City Bank Building, and MigueJ Simon of the firm of Hess&Zeitlin, Manila stock broker age house in the Crystal Arcade. “Tuesday, April 6, at a general meeting of the Manila Stock Ex change, the membership approved the distribution of 1*675,000 equally between the 30 members of record as of April 3, 1937. The effect of this was to decrease the price of seats to an approximate minimum of 1*45,000 as against the previous approximate valuation of 1*85,000. As explained by President Enrique Santamaria of the Manila Stock Exchange: ‘The distribution by the Manila Stock Exchange among its members of surplus funds accrued through sale of seats and other sources, and establishment of 15additional seats, was designed to decrease the large equity which broker-members have tied up at present in their seat holdings and thereby to bring the price of new seats to a level more consistent as an invest ment with the actual earnings of brokers. This does not by any means indicate any change in the Exchange’s conservative or constructive policies in behalf of public service. On the contrary, it is felt that this action will result in stab ilizing and clarifying the present trading situation.’ “As a result of the action by the membership, the Govern ing Committee on Friday accepted the offers of bids by Messrs. Parellada and Simon, subject to their complying satisfacto rily with the usual membership requirements. “The Governing Committee also constituted a Committee of Publicity and Quotations of which A. C. Hall, treasurer of J. G. Eisbnbbrg Ttchnical Adviier Manila Stock Exchange Some Manila Stock Exchange Rules Some of the rules governing opera tions of the Manila Stock Exchange. Penalties Sec. 3. The Governing Committee may prescribe penalties for violations of rules adopted pursuant to the Consti tution, and for neglect or refusal to comply with orders, directions or deci sions of the Governing Committee, and for any other -causes or offenses where penalties are not specifically prescribed by the Constitution. Corners Sec. 6. Whenever, in the opinion of the Governing Committee, a corner has been created in a security listed on the Exchange, or a single interest or group has acquired such control of a security so listed that the same cannot be obtained for delivery on existing contracts except at prices and on terms arbitrarily fixed by such interest or group, the Governing Committee may postpone the time for deliveries on Exchange contracts therein and may from time to time further postpone such time, or may postpone deliveries until further action by the Governing Committee, and may, at any time, by resolution, declare that if such security is not delivered on any contract calling for delivery—such contract shall be settled by the payment to the party entitled to receive such security or by the credit to such party of a fair settle ment price— Committee of Investigation Article XI. A Committee of Investi gation, to consist of two (2) members, which committee shall have the follow ing powers and duties: (a) It shall be the duty of this com mittee to consider matters relating to the Manila Stock Exchange, is chairman. The two other members of the committee are Max Kummer, of Max Kummer & Co., and A. U. Fox, of Swan, Culbertson & Fritz. The purpose of this committee will be to facilitate the dissemination of market information for broker members and the investing public. “The ticker service of the Manila Stock Exchange, which service is operated by the Stock Quotations Company, Inc., owned by the Ma nila Stock Exchange, functions with remarkable degree of efficiency and timeliness. On the morning of Thursday, April 8, news agencies and market reports from New York and London stated that rumors had been widely circulated in foreign markets that a reduction in the price of gold was contemplated. European and American markets had weakened in face of these rumors. “But in Manila, brokers and investors were fortunate. After the first reports were received through out the city, the Stock Quota tions ticker service transmitted to brokers complete reports from the United States and abroad and the public was thereby able to obtain full information through Manila Stock Exchange broker-members before the opening of the day’s trading here. “The official opening of the Manila Stock Exchange in its new quarters, the entire fourth floor of the S. J. Wilson Build ing, gives the exchange three times as much space as it had in the old quarters. The total membership of the stock exchange is now 30 and with the acceptance of two new mem berships, 32. There are now at the disposal of the Govern ing Committee, subject to specific regulations and formalities, 13 additional seats.” the business conduct and financial con dition of members and their customers’ accounts, and to observe the due course of transactions on the Exchange, with the view to seeing whether resort is being had to improper transactions; (b) With the prior authority of the Governing Committee, it shall have power to investigate the dealings, tran sactions, and financial condition of mem bers, and to examine their books and papers and their customers’ accounts without previous warning or advice. It may confer with members regarding any matter within its jurisdiction and advise the President in respect to any such matters, and it shall report to the Governing Committee any matter which in its judgment requires the considera tion of that Committee. The books and papers of any member or member firm of the Exchange shall at all times (Please turn io page 32) 32 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1937 '‘Metal & Mineral Markets” Still Bulling Base Metals Tin stocks low, larger quotas released. Copper prices affect England's rearmament program {By the United Press) NEW YORK, April 15.—After registering the widest gains in years during March, non-ferrous metals encountered considerable liquidation during the first half of April on con tinued rumors of impending monetary changes by the United States, France and England. Despite the recent declines, the magazine Metal and Mineral Markets, out today, reported a substantial market for noarly all metals which should make the break m prices only tem porary. The break in copper prices this week left that metal just below its average price for March—15-3/4 cents. Domestic copper was quoted in New York today at 15-1/2 cents. United States mining and refining interests have sought to hold the domestic copper market in line with the general recovery movement, but the exceptional demand abroad, due to high volume munitions manufacture, has speeded up advances. The domestic price level has been lifted seven times in the past eight months to get back on top of the foreign market. Copper has been subjected to terrific speculative interest in London, somewhat to the detriment of the British govern ment’s armament program. The turnover of futures options in London has been at a pace of about 5,000 tons daily. The turnover in New York futures has averaged about 4,000 tons daily for the past two months. Lead prices likewise have fluctuated widely for more than a month and despite a break during the past week, remain near the 1930 level. The average price on New York for March was 7.19 cents, nearly 1 cent above the February price. The advance in lead prices also is blamed by the mming industry on high demand and speculation in Europe. How ever, speculation in lead on the New York Commodity Ex change has increased sharply, almost equalling that in copper. Zinc, while not as active in the past month as lead and copper, has met improved demand and prices have moved steadily higher without the fluctuations of other metals. The average price for March of St. Louis spot was 7.381 cents, almost 1 cent above the previous month. In the general break in commodity prices this week, zinc dropped 1/2 cent. The general industrial picfure continues optimistic, accord ing to Metal and Mineral Markets, and the outlook for con tinued good prices for metals remains the sune. Some traders March Output Breaks P4,000,000-Mark Again IXL Demonstration Suyoc M.ade High Record The P4,000,000-mark in gold bullion production is back again as is shown by the March gold production. The total production reported except Tambis is P4,060,858 as against P3,365,753 of the same month last year and 1*3,658,607 for February 1937, showing an increase of 1*695,105 from that of the same month last year and 1*402,251 from February 1937. Demonstration, IXL Mining and Su yoc topped their product on as of last year, same month, arid of February 1937. Big Wedge had a setback as she pro duced 1*31,648 less than she did last month, showing a drop of 45 per cent. The new flotation unit which was March 1937 Gold Production March 1937 March 1936 Total................................... •Estimate only. Tons Milled Values 1rons Milled Values Antamok Goldfields............ . .. 23,919 ? 513,699 10,616 P 254,528 Baguio Gold Mining............ 5,370 89,284 5,312 96,112 Balatoc Mining.................... 37,721 1,055,538 38,015 1,013,041 Benguet Consolidated.......... . . . 24,867 822.483 24,614 818,011 Benguet Exploration............ 3,477 24,530 2,570 19,450 Big Wedge............................. 2,702 37,302 Cal Horr Mine...................... 5,680 105,308 4,932 82,593 Coco Grove.......................... ... No production 60,472 Demonstration Gold............ 7,210 154,516 5,879 133,539 East Mindanao..................... 2,400 66,000* Gold Creek Mining.............. . . . Included in Antamok 2,384 39,733 Ipo Gold Mines................... 5,350 54,855 5,655 59,778 Itogon Mining Co.:.............. 18,880 269,610 13,069 215,747 I. X. L. Mining................... 7,231 167,560 4,878 129,271 I. X. L. Argos....................... 31,635 Masbate Consolidated......... 40,004 251,422 21,757 138,939 Northern Mining & Dev.. . . 10 72 360 3,964 Salacot Mining................... 4,570 21,477 5,600 39,000 San Mauricio...................... 4,263 175,777 2,725 77,756 Suyoc Consolidated............. 6,732 126,146 4,582 95,410 Tambis Gold Dredging....... . . .Not yet available 22,624 yds. 7,576 United Paracale................... 9,158 93,645 3,806 80,833 210,519 T*4,060,858 156,754 plus P3,365,753 22,624 yds. not operated last month. United Pa racale has an increase of P12,812 from that of the same month last year and a decrease of 1*60,109 from that of her production February 1937. This decrease is due to the closing of one of the sources of ore because of water. Demonstration is higher by 1*20,977 over last year and 1*32,085 over Feb ruary’s production: IXL Mining is higher by 1*38,309 over last year, same month, and 1*15,322 over February. Of the 1*4,060,858 the Benguet Con solidated interests contributed P2,038,183; the Soriano Interests 1*964,316 and the Marsman interests 1*665,250. Some Manila Stock Exchange... (Continued from page 27) be open to inspection by the Governing Committee, Committee of Investigation or any special committee. Conymittees on Publicity and Quotations Article XJ. (a). It shall be the duty of this Committee, under the direction of the President, to keep the public correctly informed concerning matters of public interest having to do with the Exchange; (b) It shall have charge of all matters relating to the collection dissemination and use of quotations; it shall have power to approve or disapprove any application for quotation service to a non-member, or for telephonic or tele graphic wire or wireless connection between the office of a member or a member firm and the office of any cor poration, firm, or individual, not a member of the Exchange, transacting a banking or brokerage business, and it shall have power at any time to disap prove the furnishing of any such quota tion service or any such wire or wireless connection, and to require the discon tinuance thereof. It may inquire into wire or wireless connections of every kind whatsoever between the office of a member and any member or non member, and may require the disconti nuance of any such connection. (c) The Committee shall have the power to. review advertising copy and literature of members and firms of members and to recommend to the Governing Committee such rules and regulations pertaining to advertising and publicity as may appear desirable to maintain the dignity and prestige of the Exchange and just and equitable principles of trade. Failure Due to Unbusinesslike Dealings. Article XVI, Sec. 6. Whenever the Governing Committee shall determine that a member suspended under the provisions of this Article has been guilty of irregularities or unbusinesslike deal(Pleaee turn to page 40) THE AMERICAN CHAMBER OF COMMERCE JOURNAL April 1937 Some Manila Stock Exchange... (Continued from page 32) ings, said member may, by the vote of six (6) of its members, be deelared ineligible for reinstatement. Fraud or Fraudulent Acts Sec. 2. A member who shall be adjudged by the vote of at least six (6) members of the entire Governing Com mittee guilty of fraud or of fraudulent acts, shall be expelled. S,ec. 3. A member who shall be adjudged by the vote of at least six (6) members of the entire Governing Com mittee guilty of making a fictitious transaction or of giving an order for the purchase or sale of securities the execu tion of which would involve no change of ownership, or of executing such an order with knowledge of its character, shall be suspended or expelled as said Committee shall determine. At the close of the week ending April 17 the Manila Stock Exchange prohibited short selling among its mem bers. How this will work remains to be seen, but it seemed to have the immediate effect of stabilizing the market at the opening of business Monday, April 19, when this comment had to be closed. Business and Pleasure Benjamin S. Ohnick, first vice-president and acting manager of Marsman & Co., accom panied Mrs. Ohnick to Hongkong on the Empress of Japan and attended the general shareholders’ meeting of Marsman Hongkong China, Limited. Major A. Beckerleg, vice-president of Marsman & Co., made the same trip. Mrs. Ohnick con tinues on to Seattle where the three Ohnick children are in school and where the Ohnicks recently purchased a handsome country home spaciously provided with thirty-two rooms. Alf Welhaven, vice-president and manager of the Manila division of Marsman & Co., left Manila with Mrs. Welhaven this month for a prolonged vacation to be chiefly devoted to travel beginning in the United States, at San Francisco, with a visit to their daughter Lilibess, and afterward embracing a European tour and a visit among relatives and old friends in Norway. Mrs. Ohnick will remain in Seattle indefinite ly, as present plans are, keeping house for the children who have clamored for a home near school. McCORMICKDEERING DIESEL TRACTORS CUT POWER COSTS McCORMICK-DEERING TracTracTor Model TD-40 4O-6OHP OPERATING on small quantities of low-priced fuel, McCORMICKDEERING DIESEL Tractors bring almost unbelievable economies to their users. The power plant in these tractors—Models TD-40 TracTracTor and WD-40 Wheel Tractor—is a remarkable achievement in Diesel design and engi’ne construction. 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pages: 27, 32, 40