[3] The New York Mining Stock Exchange opened for active business on November 1, 1875 at noon, with John Stanton Jr. as president.

[8] From its inception, Consolidated employed then cutting edge clearing house techniques which were efficient at preventing frauds and the reneging on bargains.

[10] On June 11, 1900, Mortimer H. Wagar defeated Charles G. Wilson for the presidency of the Consolidated Stock and Petroleum Exchange[11] with "a large majority of the members" supporting him.

At the time there were calls in the New York State Assembly to ban bucket shops, making an investigation into Consolidated a topical political issue for Democratic gubernatorial candidate Alfred E.

William Silkworth continued to work on his reform program, and shortly afterwards, the assembly passed the Martin Act, which essentially banned bucketshops.

[18] In April 1923, it was reported that lawyer Henry W. Sykes had sent a letter to Attorney General Carl Sherman requesting a conference over investigation into "allegations that the Consolidated Stock Exchange was the headquarters of bucket shop operations.

"[21] On July 5, 1923, the Consolidated's board of governors agreed to allow the Committee on Ways and Means to "make an investigation of any firm or member [of the exchange] against whom a complaint has been filed by the Attorney General.

[23] On February 4, 1924, president Laurence Tweedy announced changes to the exchange constitution, requiring all member applicants to give their full business histories.

Stated Maloney that day, Wilson "was one of the members of a committee which went to Washington from the Exchange several years ago and succeeded, virtually single-handed, in having the stock loan tax bill repealed.

"[25] After starting the examination in March 1925,[26] on June 26, 1925, the Internal Revenue Bureau of the U.S. Department of the Treasury told exchange Thomas B. Maloney that it launched an investigation into whether "the Federal Government has lost hundreds of thousands of dollars in the last two years through the failure of some members of the Consolidated Stock Exchange to place tax stamps on stock transfers as required by law."

[27] That day, however, Chief Agent Gugh McQuillan stated that "no evidence of deliberate fraud by tax-dodging brokers had so far been uncovered.

"[28] On February 4, 1926, Supreme Court Justice John Ford granted temporary injunction to "restrain the Consolidated Stock Exchange from continuing certain practices alleged by the Attorney General to be illegal."

Several days later, Consolidated president Philip Evans and Deputy Attorney General Keyes Winter held hearings over the reorganization of the exchange, which entailed 19 provisions, some described as "drastic."

[30] The exchange reopened on March 30, 1926, under "the revised constitution and stipulations drawn up by the State Attorney General," with the injunction dismissed.

However, the Times quoted members stating that "very little" trading was done, as it was "virtually impossible for a floor trader to transact business under the drastic stipulations.

"[31] On April 13, 1925, Consolidated denied reports that its officers were "seeking permission to modify certain restrictions under which the Exchange was permitted to resume business."

"[32] By April 1926, opposition had "again developed against the Exchange's administration," with a group of members demanding representation on the board, as "authorities are putting through resolutions without notifying the entire membership.

[34] In October 1926, president Evans announced that the Exchange was not going to cease operation entirely, although he promised fair equity to members who wished to withdraw.

Writes the Times, "the consolidated insists that the use of the tickers is protected by an injunction obtained nearly forty years ago.

Frobisher had earlier brought suit to the Supreme Court to have the Exchange dissolved and its assets equitably distributed.

[36] Valentine Mott succeeded Philip Evans as president of the Consolidated in the middle of June 1927, and was "identified with the faction which sought unsuccessfully to resume trading.

[9] From its inception, Consolidated employed then cutting edge clearing house techniques which were efficient at preventing frauds and the reneging on bargains.

According to the economists Brown, Mulherin and Weidenmier, "NYSE bid-ask spreads fell by more than 10% when the Consolidated began to trade NYSE stocks and subsequently increased when the Consolidated ceased operations" and "empirical analysis suggests that this historical episode of stock market competition improved consumer welfare by an amount equivalent to US$9.6 billion today.

[30] On March 31, 1926, it was reported that following the sale of the Exchange Building, smaller quarters would be purchased or rented for Consolidated members to conduct business.

[31] On April 12, 1926, officers including president Evans would not clarify if they intended to sell the building as the Exchange underwent reorganization.

[5] At the annual election on June 11, 1900, Mortimer H. Wagar defeated Charles G. Wilson for the presidency of the Consolidated Stock and Petroleum Exchange.

According to The New York Times, "the contest was the most closely fought in the history of the Exchange, the total number of votes cast being 793.

On June 7, he appeared in the Criminal Courts Building to be questioned regarding a recent bankruptcy of a brokerage that had been a member of the exchange.

[32] In the officer elections held May 10, 1926, Philip Evans remained president as the results were recounted following ballot issues over the next few days.

[42] For the May 10, 1926 Board of Governors elections, thirteen members were named to be voted on, all repeating their positions except Huntington Lyman nominated to replace William A.