Evening star., 1929-12-21

The Realty Securities Exchange was
fostered and is sponsored by the New
York Real Estate Board. Cyrus c. Mil
Ter is president of the exchange anc
Peter Grimm, who as president of the
New York Real Estate Board "fathered'
creation of the exchange, is chairman
Of its board of governors.
Officers of the exchange, in forma'
announcement, state:
"AS a central market for the use OF
buyers and sellers of real estate Securi-
ties, its four main purposes are:
ITO facilitate the negotiation, sale
and transfer of stocks, bonds and other
securities based on real estate and the
financing of real estate:
ITO provide a regular place for the
trading in real estate securities under
proper rules of business conduct;
ITO investigate securities offered for
listing. accepting only those which pass
the tests of rigid appraisal and listing
requirements; and
ITO maintain high standards for
dealing in real estate securities by es-
tablishing membership based on f1rrl
business character and reputation.
"The offering of unsound securit es
based on improper appraisals or issLed
by irresponsible organizations should be
minimized by these steps. and the mar
ket should be stabilized by recording
sale prices and reporting them daily.
With real estate securities liquid and
means created for investors to dispose
of their investments and reinvest with
safety. broadened public interest in this
type of security may be expected"
Scope Is National.
While the exchange is located in
New York, this does not limit the loca-
1, ky-r ,soll HA
curities are listed. The scope is ma
tional In describing how securities
may be listed, exchange officials state:
Before a security can be listed it
must undergo the scrutiny of the COM
mittee on listing. The object of the
committee is not to guarantee sound
ness, but to prevent, in so far as hu-
manly possible, the sale, transfer or
other disposition of securities which
might be preiudicial to the welfare of
the public, real estate or the exchange.
To this end the committee informs it
self in detail as to the financial condi-
ton. the personnel and the history
Of the corporations and individuals who
offer securities for listing. This data is
kept on file and is available to members
Df the exchange.
THE application for listing must be
accompanied by a report of qualified
appraisers on the actual valuation OF
the property.
I'm addition to a quantity of routine
information. the application must re-
cite the purposes for which the security
is issued, the amount issued for con-
tracts, securities of property and the
history of the corporation, its prede-
cessor companies and of constituent
subsidiary and owned and controlled
companies. together with facts OF their
incorporation and stock.
Must Furnish Data.
"The financial condition must be ex-
planned with regard to mortgages anc
other forms of Indebtedness. The date
of maturity and rate of interest mus
be given and whether the securitie!
against such mortgages have a con-
vertible feature. Whether they have {
redemption feature and whether this /!
arranged by sinking fund or otherwise
also must be given. How much stool
Is authorized and issued must be stated
1.-THE application also must reclt'
liabilities. A complete financia
statement must be provided. 1
is required that the committee must b'
furnished with all information affect
ing the security, such as mortgages, in
denture, trust or other agreement; liens
property covered, buildings, securities
rights, titles, francise, leases and al
other factors affecting it. Besides com
prehensive information as to the char
acter, organization, resolutions and by
laws of the company, the application
must include an opinion as to the legal
ity of the organization and authorize
zion and the issue and legality of tn
stocks.
"The board Of governors (of the ex
ghange) holds the right to suspen,
dealings in any securities previously ad
mitted to quotations on the eXchang
@ summarily remove them from tn
st, while the committee con listing)
authorized to remove from the list Sc
Ourities whose outstanding amount
have made further dealings inadvisa
Die"