New Orleans Stock Exchange

The New Orleans Stock Exchange, or the New-Orleans Stock Exchange,[1] was a regional stock exchange based in New Orleans, Louisiana.[2] As early as 1880, the exchange's sales of stock reached a reported total of $7,891,300.[3] The exchange moved into a new building in 1906, described as the most expensive and artistic structure of its size in the city. At the time, membership was limited to seventy members, with 61 "visiting members."[3] In 1959, the exchange board voted to merge with the Midwest Stock Exchange in Chicago.[4]

New Orleans Stock Exchange
TypeRegional stock exchange
LocationNew Orleans, Louisiana, United States
Closed1959
Key peopleWilliam Huger
(early president)

History

1800s-1900: Founding and early history

In 1880, the exchange's sales of stock reached a reported total of $7,891,300, with 52,609 shares being exchanged.[3] In 1887, the exchange extended its hours to 4 pm due to increased trading volumes.[3] In September 1889, the exchange was reported "paralyzed" after developments in a State bond swindle, with the New York Times reporting that "transactions in [Louisiana] State and city Government securities are at a standstill."[5] As of 1894, Captain William Huger of New Orleans was president of the New-Orleans Stock Exchange.[1]

1901-1946: Changes in the exchange

The New Orleans Stock Exchange moved into a new building in 1906, described as the most expensive and artistic structure of its size in the city, and build of marble and mahogany. At the time, the value of the exchange's membership share had grown from an initial $100 to over $6,000, with membership limited to seventy members. In 1906, there were also provisions for "visiting members," with 61 at the time.[3] On December 14, 1907, a special meeting of the exchange held a unanimous vote to re-open for general business on January 15, 1908. The exchange continued to trade in bonds during the interim, but not stocks.[2]

In August 1914, the New Orleans exchange closed for stock trading due to the outbreak of World War I.[3] The former president of the exchange, Eugene Chassanoil, reportedly shot and killed himself at the exchange on August 14, 1914. The Times reported that the 67-year old had been in ill-health for some time.[6] As of April 1927, Cartwright Eustis served as president of the New Orleans Stock Exchange.[7] In February 1928, the exchange was closed on a Saturday so members could attend the opening of Pontchartrain Bridge.[8] On December 22, 1931, the exchange voted to discontinue the trading of bank stocks.[9]

In October 1933, Louisiana Senator Huey Long was challenged by John Dane of the exchange for calling the New Orleans Stock Exchange a "gambling house," with Dane writing that "our little Exchange in New Orleans is a true investment exchange if there is any such thing in the world."[10] On November 29, 1938, a hearing was set by the SEC in New Orleans for the New Orleans Stock Yards, Inc. to stop listing its $100-par-value common stock on the New Orleans Stock Exchange.[11] The application was granted by the SEC, effective on January 16, 1939.[12]

In April 1941, the New Orleans Stock Exchange was one of 18 eighteen regional stock exchanges that received invitations to "parley" with the SEC on possible amendments to securities laws.[13] The exchange representatives, Fred N. Ogden and Robert R. Wolfe, both attended the conference on April 28, 1941 to discuss proposed amendments to the Securities Act to be presented to Congress that May.[14]

1948-1959: Merger with the Midwest Exchange

In November 1948, the New Orleans Stock Exchange was invited to take part in meetings concerning the formation of a new Consolidated Regional Exchange, along with representatives from the Cleveland Stock Exchange, Cincinnati Stock Exchange, St. Louis Stock Exchange, Minneapolis-St. Paul Stock Exchange and Chicago Stock Exchange.[15] On January 30, 1958, it was announced that Walter D. Kingston Sr. had been elected president of the New Orleans Stock Exchange.[16] In 1959, the exchange board voted to merge with the Midwest Stock Exchange in Chicago.[4] With the merger, Walter D. Kingston was president of the New Orleans Stock Exchange, with all eligible stocks on the New Orleans exchange transferred to the Midwest exchange. Also, Kingston said that "all transfer agents and registrars [for handling stocks] of New Orleans issues will remain solely in our city, to the benefit of New Orleans banks. Furthermore, all commissions earned by New Orleans members will be retained in our city, due to the Midwest exchange's unique clearing-by-mail plan." Among the companies on the New Orleans exchange at the time were the department store D. H. Holmes, Standard Fruit, New Orleans Public Service, Gulf States Utilities, and others.[4]

Key people
  • Captain William Huger (early president)
  • Walter D. Kingston Sr. (president 1958-until merger)

See also

References
  1. "Death of Col. John M. Huger; He Was an Octogenarian of Distinguished Huguenot Ancestry". The New York Times. New York City, New York. February 25, 1894. p. 2. Retrieved January 16, 2018.
  2. "To Resume Trading Jan. 15; New Orleans Stock Exchange Postpones Its Opening Date". The New York Times. New York City, New York, United States. December 31, 1907. Retrieved January 14, 2018.
  3. Engerman, Stanley L.; Hoffman, Philip T.; Rosenthal, Jean-Laurent; Sokoloff, Kenneth L. (14 July 2003), Finance, Intermediaries, and Economic Development, p. 151, ISBN 9781139438476, retrieved January 17, 2018
  4. "New Orleans Board to Merge With Midwest Stock Exchange; Wider Representation and Economies for Member Firms Are Cited". The New York Times. New York City, New York, United States. October 14, 1959. Retrieved January 14, 2018.
  5. "Major Burke Coming Home; His Responsibility for the Bond Swindle". The New York Times. New York City, New York, United States. September 19, 1889. Retrieved January 14, 2018.
  6. "New Orleans Financier a Suicide". The New York Times. New York City, New York, United States. August 15, 1914. Retrieved January 14, 2018. Eugene Chassanoil, aged 67, ex-President of the New Orleans Stock Exchange, shot and killed himself at the Exchange today. He had been in ill-health for some time.
  7. "No River Flood in New Orleans Yet". The New York Times. New York City, New York. April 30, 1927. p. 18. Retrieved January 16, 2018.
  8. "New Orleans Exchange Holiday". The New York Times. New York City, New York, United States. February 16, 1928. Retrieved January 14, 2018. The New Orleans Stock Exchange will close Saturday in order that members may attend the opening of the Pontchartrain Bridge.
  9. "Stocks Off Board; New Orleans Exchange Votes to Discontinue Trading in Them". The New York Times. New York City, New York, United States. December 23, 1931. Retrieved January 14, 2018. The New Orleans Stock Exchange voted today to discontinue trading and bank stocks. An official statement said that while "all stocks of every character have naturally declined in value" without effect upon the operations of the corporations which they represent, "in the case of banks corresponding material declines in stock quotations might have a harmful effect which would be undeserved.
  10. "Exchange Challenges Long". The New York Times. New York City, New York, United States. October 22, 1933. Retrieved January 14, 2018.
  11. "Delisting Hearing Set; SEC to Weigh New Orleans Stock Yards Applicationn". The New York Times. New York City, New York. November 11, 1938. p. 44. Retrieved January 16, 2018. A hearing has been set for Nov. 29 at New Orleans by the Securities and Exchange Commission on an application by New Orleans Stock Yards, Inc., to withdraw its $100-par-value common stock from listing on the New Orleans Stock Exchange. The petitioners set forth, according to the SEC, that on certain days in days in June publication of extremely low bid quotations on the company's common stock caused apprehension among stockholders and delisting is sought to offset the possibility of the recurrence of such a situation.
  12. "To Delist Stock in New Orleans". The New York Times. New York City, New York. January 11, 1939. p. 38. Retrieved January 16, 2018.
  13. "SEC Calls Parley on Changes in Law". The New York Times. New York City, New York. April 19, 1941. p. 21. Retrieved January 16, 2018. The Securities and Exchange Commission sent telegrams today to the heads of eighteen regional stock exchanges asking them to send representatives to a conference here on next Friday to discuss possible amendments to the various securities laws it administers.
  14. "SEC Gives Hearing to Market Groups; Regional Stock Exchanges Are Represented at Conference on Changes in Law - Congress to Get Views - Separate Reports Expected to Be Made by Commission and the Industry". The New York Times. New York City, New York. April 29, 1941. p. 27. Retrieved January 16, 2018.
  15. "New Orleans Seeks to Join 'Change Plan". The New York Times. New York City, New York, United States. November 10, 1948. Retrieved January 14, 2018.
  16. "New Orleans Exchange Elects". The New York Times. New York City, New York, United States. January 31, 1958. Retrieved January 14, 2018.
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