This essay was written in c 1959. It was copied from the Canadian Register of Commerce & Industry held in the Western Libraries at the University of Western Ontario. The original article should be consulted since this copy may contain some errors. The text and/or the images are being made available to researchers for scholarly purposes. They should not be used for commercial gain without the permission of the author or publisher.
History--The Montreal Stock Exchange is the oldest stock exchange in Canada and has been intimately associated with the industrial and financial development of the country. It was incorporated in the year 1874, but as early as 1842 a group of brokers met regularly to trade in securities, principally in bank and railway stocks. In 1863, a Board of Brokers was formed which soon grew into a regulated body with a membership subject to election.
In 1872, a committee was appointed to proceed with incorporation, and in 1874 the Legislature of the Province of Quebec granted a charter incorporating the institution as the Montreal Stock Exchange.
The petitioners for the incorporation were Donald Lorn MacDougall, E. Ford, Frank Bond, G.W. Simpson, Hartland S. MacDougall, G.C. MacDougall, F. L'Estrange Hart, Charles G. Geddes, J.D. Crawford, H.S. Strathy, Henry A. Budden, J. Try-Davies, W.R. Oswald, Henry C. Scott, J. Burnett and others.
By the time of incorporation, there were only 63 issues traded and daily turnover totalled about 800 shares. Today the list covers a wide range of industrial, utility, and miscellaneous stock and bond issues and the volume often exceeds 100,000 shares a day.
The original charter in 1874 provided for 40 seats or memberships. Through successive years this figure has been increased, until at the present time the number of ordinary members is limited to 80.
The value of the seats has fluctuated with the trends of supply and demand and business in general. Seats are currently being traded in the vicinity of $30,000.
Enquiries are always made as to the character, responsibility and financial standing of every applicant for membership, and a vote by ballot is made in each case. One adverse vote in five excludes the candidate. Upon election, a stringent set of by-laws, rules and regulations must be adhered to by each member.
Rules and Regulalions--The maintenance of high standards of commercial honour and integrity among its members and member firms and the promotion of just and equitable principles of trade and business are the objects of the Exchange. The Governing Committee and the members act to protect the interests of the general public by constantly keeping their by-laws up to date, and penalizing members for any infractions. Valuable assistance if this connection has been rendered by an Association of Partners of member firms formed in 1949.
Listing Requirements--A listing sub-committee of the Governing Committee passes upon the merits of all applications by companies to list their securities. Certain definite and stringent requirements are set down for the protection of the public.
Members of the Montreal Stock Exchange--M.M. Allan, (Collier. Norris & Quinlan); R.B. Ashby, (Hugh Mackay & co.); J.R. Ballantyne, (Craig, Ballantyne & Co., Limited); A.S. Beaubien, (L.G. Beaubien Co.); S.K. Bongard, (Bongard & Co.); J.C. Boulet, (J. C. Boulet, Inc.); R.C. Bulman, (Grant Johnston & Co); S.D. Cantlie, (Burnett Co.); J.E. Chaput, (Brault & Chaput); A.J. Chilcott, (C.M. Oliver & Co.); C.I. Coulter; H.K. Crabtree, (Baker Weeks & Co.); E. Cradock, (Cradock Securities Ltd.); J.H. Crang, (J.H. Crang & Co.); D.B. Dawson, (Dawson Hannaford & Co. Ltd.); E.C. Dean; W.H. Dean, (McCuaig Bros & Co. Ltd.); R. Dethier, (Credit Anglo-Francais Ltd.); J.R. Donaldson, (Hickey, Donaldson & Co.); F.O. Evans, (McLeod, Young, Weir & Ratcliffe); F.H. Fairbanks; H.J. Ferguson, (G.E. Leslie & Co.); Jacques Forget, (Forget & Forget); R.D. Foster; V. Fowler, (Jones, Heward & Co.); A.F. Francis, (A.F. Francis & Co. Ltd.); G. Gariepy; H.S. Garland: J.T. Gendron, (J.T. Gendron Inc.); J.D. Gibson, (Gairdner & Company Limited); R.E. Gillett, (Gillett & Strachan); F.R. Graham, (Graham & Co.); C.L. Gundy, (Wood Gundy & Co.); J.D. Herdt, (Beaubien & Co.); J.R. Hughes, (Royal Securities Company); L.S. Jackson, (Jackson, McFadyen Securities Ltd.); H.S. Jones, (Flood & Co.); W.D. Latimer, (W.D. Latimer Inc.); W.H. Leggat, (Leggat, Bell, Guoinlock Ltd.); J.L. Levesque, (J.L. Levesque & Co.); J.E. MacMurray, (Scottish Securities Limited); J.D. Macpherson; W.S.M. MacTier, (MacTier & Co.); L. Marler, (J.L. Marler & Co. Ltd.); N.L.C. Mather, (MacDougall & MacDougall); F.G. McArthur, (A.E. Ames & Co.); C.W. McBride, (The Midland Company Limited); P.D. McDougall (McDougall & Christmas); D.C. McEachran; J. McFetrick, (McFetrick & Co.); D.S. McMaster; E.S. Merrett; F.S. Molson, (Molson & Co.); W.E. Morgan, (Morgan & Co. Ltd.); H.E. Murray, (Nesbitt, Thomson & Co.); B.W. Newkirk, (Newkirk Securities Ltd.); S.E. Nixon, (Dominion Securities Company); W.L.S. O'Brien, (O'Brien & Williams); G.P. Osler, (Osler & Hammond & Nanton); G.S. Osler, (Osler & Hammond); P.E. Ostiguy, (Charles King & Co.); P.W. Parsons, (Greenshields & Co.); Walter F. Power, (McLeod, Riddell & Co.); G.H. Reeves, (C.J. Hodgson & Co.); Malcolm Reilly, (Jackson, McFadyen Securities Ltd.); J.A. Richardson, (James Richardson & Sons); Louis Robert, (Geoffrion, Robert & Gelinas); F. Rochon; D.V. Rodomar; F.A. Rose, (Norris, Adams Limited); O. Samson, (Barry & McManamy); J.E. Savard, (Savard & Hart); H.N. Stanbury; F.L. Stuart, (Kingstone & Mackenzie); A.E.D. Tremain, (Moat & Co.); F.J. Vincent, (L.J. Forget & Co.); J.B. Weir, (Oswald & Drinkwater); R.W. Wilson, (Watt & Watt); J.M.D. Wood, (Meighen, Wood Limited).
Administration--A Governing Committee formulates and administers the policies of the Montreal Stock Exchange. Eight of this committee are ordinary members of the corporation, while three are elected from among the partners of the members. The executive committee consists of the chairman, vice-chairman and secretary-treasurer. A president is appointed by the Governing Committee to act as the corporation's chief executive, subject to the direction and control of the Governing Committee, and a vice-president to assist the president in the performance of his duties.
The address of the Montreal Stock Exchange has been 453 St. Francois Xavier St. since the year 1904. Space and facilities have kept pace with its steady growth, with many changes and additions being made over the years.