Consolidated Stock Exchange of New York
Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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1926
State injunction and restrictive reorganization
A court injunction restrained practices that the attorney general alleged were unlawful. The exchange reopened under extensive state-imposed conditions, but trading reportedly became extremely limited and the institution ceased operations during 1926.
1925
Investigation of missing stock-transfer tax stamps
The Internal Revenue Bureau investigated whether some Consolidated members had failed to place required tax stamps on stock transfers. Authorities identified a substantial number of suspected noncompliant members, while initially stating that deliberate fraud had not been established.
1923
Ottinger investigation into bucket-shop operations
New York investigators examined claims that the Consolidated served as a headquarters for bucket-shop operations and reviewed the Fuller bankruptcy. Silkworth resigned after investigators identified irregularities in his personal finances, although the cited proceedings did not implicate him directly in causing the Fuller failure.
1922
Brokerage failures and alleged corruption
A series of failures among member firms, including R. H. MacMasters & Company and Edward M. Fuller & Company, led to allegations of weak oversight, corrupt brokerage practices, and possible misuse of an emergency fund raised by President W. S. Silkworth. Silkworth denied the accusations, but the episode prompted state scrutiny and intensified calls to prohibit bucket shops.