The Standard Stock and Mining Exchange (SSME) was a Canadian stock exchange that existed from 1900 to 1934. The SSME was founded in 1900 through the merger of two existing mining exchanges that had been formed in 1898 and 1899 respectively. Throughout its history, the SSME was the world's largest mining exchange and the second largest stock exchange in Toronto. The development of the SSME helped make Toronto the center of Canada's mining industry, which in turn would lead to the city's eclipse of Montreal as the country's financial capital.
Despite its preeminence in Canadian mining financing, the SSME was rife with speculation and fraud. Consequently, following the creation of the Ontario Securities Commission in 1931, the new commission pushed the SSME to merge with the more reputable Toronto Stock Exchange. In February 1934, the SSME merged with the TSE, continuing under the latter's name. As a result of the 1934 merger, today the TSE remains the world's largest market for mining financing.
Predecessor exchanges
Toronto Mining and Industrial Exchange The Toronto Mining and Industrial Exchange was formed in the wake of the mining boom in Rossland, British Columbia. In 1896, John Allister Currie travelled to Rossland, and on his return instigated the creation of a mining exchange.
The first evidence of the TMIE came on 14 January 1898, when the Globe reported that the previous day a group of brokers had met to form the exchange. Those present at the meeting were J. A. Currie, C. B. Murray, S. Bassett, F. McPhillips, F. A. Hall, William C. Fox, J. B. Coulthard, R. Dixon, J. Hugo Ross, Lewis Bacque, Edward Strachan Cox, and J. S. Sharp. Currie was elected president, McPhillips as first vice-president, Fox as second vice-president, Murray as secretary, and Basset as treasurer. Membership on the exchange was limited to 15, and the first call would be on Monday, 17 January at 11:30 am."A mining exchange formed," The Globe, (14 January 1898), 10. Despite the ostensible origin on 13 January 1898, later sources referred to the exchange as having been founded in "early 1897,""Standard Stock and Mining Exchange in new home," Saturday Night, (5 February 1927), 19. while the Standard celebrated its 30th anniversary in January 1927."Standard Mining Exchange celebrates 30th birthday," Financial Times, (21 January 1927), 19. Given the lack of evidence for the existence of the exchange before 1898, the references to a January 1897 origin likely were errors stemming from a paucity of records.
Standard Mining Exchange The Standard Mining Exchange, Ltd was incorporated on 13 April 1899 under a provincial charter and was set up as a joint-stock company. The incorporators were J. M. Staebler, W. Maguire, W. K. Magee, L. R. Arnett, E. G. Parker, A. C. Cornell, and James Curry."New Ontario companies," The Globe, (5 June 1899), 11. The first session of the new Standard Mining Exchange was held on 18 April 1899 at 11:15 am in the Lawlor Building."The Standard Mining Exchange," The Globe, (18 April 1899), 4. The formation of the new exchange set off a legal fight between the city's now three exchanges. First, the TMIE filed a deputation with provincial secretary Elihu Davis over the new exchange's use of the name "Mining Exchange," on the grounds that the Toronto Stock Exchange had fought its own use of this name when it filed for its own charter."Question of the name," The Evening Star, (20 April 1899), 3. Then, the Toronto Stock Exchange protested the incorporation of the TMIE and the SME on the grounds that both exchanges infringed on its business. Davis heard the arguments from the three parties on 25 April."Hot talk over a name," The Evening Star, (25 April 1899), 3."Brokers' battle," The Globe, (26 April 1899), 8. Finally, on 3 May, David granted charters to both the Toronto Mining and Industrial Exchange and the Standard Mining Exchange, stating that there was no doubt of the legality of both companies' charters under the Joint Stock Companies Act."Toronto mining exchanges incorporate," The Evening Star, (3 May 1899), 5.
On 27 June, the SME held its first annual general meeting. There, it elected an executive of E. Gartly Parker as president, M. D. Boyd as first vice-president, A. J. Barr as second vice-president, L. R. Arnett as secretary, and F. H. B. Lyon as treasurer."It will pay dividends," The Evening Star, (28 June 1899), 8. The Standard held its second and final annual meeting on 5 June 1900 where it elected D. F. Maguire as president, M. D. Boyd as first vice-president, W. J. Palmer as second vice-president, L. R. Arnett as secretary, and A. J. Barr as treasurer. Other directors were E. G. Parker, S. R. Clarke, and L. H. Bacque."Standard's new officers," Toronto Daily Star, (6 June 1900), 12.
History of the Standard Stock and Mining Exchange
Formation of the Standard
On 5 June 1900, the boards of both exchange met to vote on a merger."Amalgamation of exchanges" The Globe, (5 June 1900), 11. On Wednesday, 20 June, the boards of the separate exchanges met for the final time to finalise the details of the merger."Amalgamated exchanges," The Globe, (20 June 1900), 12. The new board joint board met for the first time on Monday, 25 June 1900."Two exchanges are now united," Toronto Daily Star, (25 June 1900), 7. Concurrently, L. R. Arnett, secretary of the Standard, released a statement announcing the SME's merger with the TMIE. The statement read: "The Standard Mining Exchange having amalgamated with the Toronto Mining & Industrial Exchange, the consolidated exchange to be known as the Toronto Mining Exchange, all quotations after this date will be issued by the new exchange at the Board of Trade.""Amalgamation notice," The Globe, (25 June 1900), 9.
The afternoon of the merger, members gathered at the Temple Café in the Temple Building for a celebratory lunch. The menu was mining-themed and featured Black Tail soup, Golden Star radishes, Granby gherkins, Wa Wa potatoes, chicken timbale with Iron Mask, War Eagle sauce, Crow's Nest, Smuggler, and Deer Park salads, Golden Hills cream, Virginia ice cream, Rossland biscuits, Spokane cheese, and Amalgamation café noir. The Globe reported that "the cordial spirit of fraternity among the brokers was thoroughly demonstrated, and the lions and the lambs, the bulls and the bears, the buyers and the sellers, vied with one another in showing the depth of the harmony and good feeling which now predominate.""Mining market," The Globe, (26 June 1900), 10.
Legally, the new exchange was a continuation of the 1899 Standard Mining Exchange, Ltd, which was a joint-stock company. The name then was changed to the Toronto Mining Exchange, Limited."Change of name," Toronto Daily Star, (3 December 1900), 7. At some point in late 1901, the government extended the powers of the exchange to buy and sell stocks of companies outside the mining industry. At this time, the name of the exchange was changed to the Standard Stock and Mining Exchange Limited."A new stock exchange," The Globe, (30 January 1902), 12.
In September 1903, the SSME left the Board of Trade Building and took up quarters at 43 Scott Street."Leaving Board of Trade," The Globe, (23 September 1903), 12.
On 29 December 1908, a new provincial corporation was chartered called the Standard Stock and Mining Exchange. The new corporation took over the assets of the Standard Stock & Mining Exchange Ltd, at which time the exchanged ceased to be joint-stock company."Standard gets new charter," Toronto Daily Star, (23 January 1909), 22.
On 2 July 1912, the Exchange opened its new quarters at 56 King Street West."Dome extension off; market generally weak," The Globe, (3 July 1912), 10.
On 7 January 1927, the exchange moved into the Imperial Trusts building at 15 Richmond Street West. The new quarters were opened by O. C. Bateman, secretary of the Ontario Mining Association.
In October 1928, the SSME purchased the Bell Telephone Building at 33 Temperance Street for $265,000. The building had been vacant for several years. Subsequently, the exchange hired architects George, Moorhouse & King to plan the conversion. This would include raising the roof five feet and installing a 90-foot quotation board."Telephone building bought by exchange," Toronto Daily Star, (1 November 1928), 33. Among the features of the new exchange were a 63 by 80 foot trading floor illuminated by skylights, 62 telephone booths, six trading posts, and oak-paneled gallery, and a pneumatic tube system."Standard Stock Exchange move is progressive step," Toronto Daily Star, (27 June 1929), 20. On the evening of Thursday, 27 June 1929, the exchange held a gala dinner on the trading floor to open the new building. The building was opened officially by premier Howard Ferguson. Other dignitaries included mayor Sam McBride, Ontario attorney general William Herbert Price, and Ontario minister of mines Charles McCrea."Hon. C. McCrae predicts $200,000 output for mines of Ontario," The Globe, (28 June 1929), 15. Trading began at the new quarters on Tuesday, 2 July 1929 following the Dominion Day holiday.John M. Grant, "Exchange building tribute to Toronto as big mining centre," The Globe, (3 July 1929), 9.
Beginning on 7 November 1929, the Financial Post published a ten-part exposé on the activities of members of the SSME."Gigantic manipulation in mining industry hits public confidence," Financial Post, (7 November 1929), 1. The series outlined a litany of dishonest behaviours engaged in by members of the exchange. The tenth and final piece in the series was published on 9 January 1930 with the headline "Mining engineers find incompetent shysters bring disrepute upon profession.""Mining engineers find incompetent shysters brings disrepute on profession," Financial Post, (9 January 1930), 1.
The reporting by the Post instigated a response from the provincial attorney general. On 30 January 1930, the Toronto Police, under order from the attorney general, executed a series of arrests of brokers and raids of brokerage offices. Shortly before 8 am that day, the police arrested ten brokers and three material witnesses at their homes. Warrants were issued for the arrests of three additional brokers who were out of the province at the time. Once the brokers had been taken to city hall, the police then raided the offices of their firms, sending employees home and seizing all records and assets. The firms raided were known as the "big five" in mining brokerages; these were Solloway, Mills & Co., Arthur E. Moysey & Co., D. S. Paterson & Co., Homer L. Gibson & Co., and Stobie, Furlong & Co."Leading operators on Standard Exchange accused of conspiracy," Toronto Daily Star, (30 January 1930, 5 o'clock edition), 1-2. Collectively, these five firms owned 26 of the 50 seats on the SSME. The brokers arrested were D. S. Paterson, Austin Campbell, Edgar E. McLean, James J. Heppleston, W. J. Shutt, Malcolm Stobie, C. J. Furlong, Gordon Draper, and William J. Smart. Warrants were issued for W. J. Wray, who was in Montreal, and for Isaac Solloway and Harvey Mills, who were in Alberta."Twelve taken into custody in police swoop on brokers at direction of government," The Globe, (31 January 1930), 1.
Merger into the Toronto Stock Exchange George A. Drew, the first chairman of the Ontario Securities Commission, instigated the merger of the SSME into the TSE.Christopher Armstrong, Moose Pastures and Mergers: The Ontario Securities Commission and the Regulation of Share Markets in Canada, 1940-1980, (University of Toronto Press, 2001), 7.