Nov. 9, 1940

After SEC Chairman William O. Douglas lashed out at the New York Stock Exchange's "club" atmosphere and declared that "no element of the Casino should be allowed" (TIME, Dec. 6), Exchange members expressed their reaction by hooting, whistling and booing on the floor of the Exchange, crying "Casino!" whenever they had trouble buying or selling at a desired price. Wall Street's official reaction was a painfully courteous promise by Charles R. Gay. president of the Exchange, to look into the situation.

Last week President Gay made good his promise. He appointed a committee "to consider all aspects of a further development of the organization and administration of the Exchange, including, among others, the advisability of making the presidency a salaried office, of transferring greater administrative responsibility to executives, and of making the function of standing committees supervisory rather than administrative, and to report its recommendations ... as promptly as possible. . . ."

Simultaneously the Exchange announced the findings of a similar committee appointed to investigate raising brokerage commissions. It recommended a general 10.8% upping of commission rates for nonmember trading. 5% for member trading, odd-lot trading to remain as is. To reach these conclusions had taken the committee and its predecessors some 35 months since the subject was first broached by the Exchange on Jan. 9, 1935. Noting this fact and the simultaneous appointment of a new committee, the New York Times dryly commented: "The precedent can hardly be overlooked. Nov. 9, 1940 is the logical date for the report."

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