Brokers' Wires

The recent "bull market" in shares on the Stock Exchange has been unequaled in its duration, its volume of trading, and perhaps in the extent of its price advances. Yet to a less extent than ever before can the market be attributed simply to "Wall Street." Investors and traders all over the U. S. have taken part in it. This is shown by the present extent of the private wire-systems of Stock Exchange firms.

Many brokerage firms in Manhattan have gained the title of "wire houses" because of the extensive private telegraph lines which they lease to convey orders for securities to Manhattan. The 20 principal wire houses require about 300,000 miles of leased wires. A single large firm alone operates 40,000 miles of private-leased wires, connecting its main office in Manhattan with 12 branch offices and over 50 correspondent firms all over the country.

The wire business is quite seasonal. Every summer, wires are established to New England and the summer resorts. Just now an unprecedented demand has arisen for wires to Miami, Jacksonville, St. Petersburg, Palm Beach and other Florida centres. To a less extent, the same thing may be said for many other parts of the South. The southern demand for security-trading wire facilities has arisen not only from the South's popularity as a winter recreation centre, but also from its marked prosperity this year.

The speed with which orders are transmitted to Manhattan over brokers' wires is sometimes remarkable. Recently a San Franciscan bought 100 shares of a popular motor stock on the floor of the New York Stock Exchange and had the price reported back to him-- all in less than 60 seconds.