Now, the position of telephone-boy is really important in that it requires not only a quick-witted but a trustworthy person to fill it. In the first place, the boy knows whether his firm is buying or selling certain stocks; he must exercise discrimination in the matter of awarding the orders, should the Board member of the firm happen to be unavailable when the boy receives the order. For example: International Pipe may be selling at 108. A man in Tracy & Middleton’s office, who has bought 500 shares of it at 104, wishes to “corral” his profits. He gives an order to the firm to sell the stock, let us say, “at the market,” that is, at the ruling market price. Tracy & Middleton immediately telephone over their private line to the Stock Exchange to their Board member to “sell 500 shares of International Pipe at the market.” The telephone-boy receives the message and “puts up” Mr. Middleton’s number, which means that on the multicolored, checkered strip on the frieze of the New Street wall, Mr. Middleton’s number, 611, appears by means of an electrical device. The moment Mr. Middleton sees that his number is “up,” he hastens to the telephone-booth to ascertain what is wanted. Now, if Mr. Middleton delays in answering his number the telephone-boy knows he is absent, and gives the order to a “two-dollar” broker, like Mr. Browning or Mr. Watson, who always hover about the booths looking for orders. He does the same if he knows that Mr. Middleton is very busy executing some other order, or if, in his judgment, the order calls for immediate execution. The two-dollar broker sells the 500 shares of International Pipe to Allen & Smith, and “gives up” Tracy & Middleton on the transaction, that is, he notifies the purchaser that he is acting for T. & M., and Allen & Smith must look to the latter firm—the real sellers—for the stock bought. For this service the broker employed by Tracy & Middleton receives the sum of $2 for each 100 shares, while Tracy & Middleton, of course, charge their customers the regular commission of one eighth of one per cent., or $12.50 per each hundred shares.
Young Hayward attended to his business closely, and when Mr. Middleton was absent from the floor, or busy, he impartially distributed the firm’s telephoned buying or selling orders among the two-dollar brokers, for Tracy & Middleton did a very good commission business indeed. He was a nice-looking and nice-acting little chap, was Hayward—clean-faced, polite, and amiable. The brokers liked him, and they “remembered” him at Christmas. The best memory was possessed by “Joe” Jacobs, who gave him $25, and insinuated that he would like to do more of Tracy & Middleton’s business than he had been getting.
“But,” said Sally, “the firm said I was to give the order to whichever broker I found first.”
“Well,” said Jacobs, oleaginously, “I am never too busy to take orders from such a nice young fellow as yourself, if you take the trouble to find me; and I’ll do something nice for you. Look here,” in a whisper, “if you give me plenty of business, I’ll give you $5 a week.” And he dived into the mob that was yelling itself hoarse about the Gotham Gas post.
Hayward’s first impulse was to tell his firm about it, because he felt vaguely that Jacobs would not have offered him $5 a week if he had not expected something dishonorable in return. Before the market closed, however, he spoke to Willie Simpson, MacDuff & Wilkinson’s boy, whose telephone was next to Tracy & Middleton’s. Sure enough, Willie expressed great indignation at Jacobs’s action.
“It’s just like that old skunk,” said Willie. “Five dollars a week, when he can make $100 out of the firm. Don’t you do it, Sally. Why, Jim Burr, who had the place before you, used to get $20 a week from old man Grant and $50 a month from Wolff. You’ve got a cinch, if you only know how to work it. Why, they are supposed to give you fifty cents a hundred.” Willie had been in the business for two years, and he was a very well-dressed youth, indeed. Sally now understood how he managed it on a salary of $12 a week.
He did not say anything to the firm that day, nor any other day. And he didn’t say anything to Jacobs in return, but, by Willie’s sage advice, contented himself with merely withholding all orders from that oleaginous personage, until Mr. Jacobs was moved to remonstrate. And Sally, who had learned a great deal in a week under Willie’s tuition, answered curtly: “Business is very bad; the firm is doing hardly anything.”
“But Watson told me,” said Jacobs, angrily, “that he was doing a great deal of business for Tracy & Middleton. I want you to see that I get my share, or I’ll speak to Middleton and find out what the trouble is.”
“Is that so?” said Sally, calmly. “You might also tell Mr. Middleton that you offered me $5 a week to give you the bulk of our business.”
One of the most stringent laws of the Stock Exchange treats of “splitting” commissions. Any member who, in order to increase his business, charges an outsider or another member less than exactly the prescribed amount for buying or selling stocks, is liable to severe penalties. The offer of a two-dollar broker to give a telephone-boy fifty cents for each order of 100 shares secured was obviously a violation of the rule.