Evening star., 1933-10-21
CHANGES ARE SEEN
IN BROKERS' CODE
Fair Practices Rules May Be
Added, Whiteside Says
at Hearing Here.
BY EDWARD c. STONE.

BY EDWARD C. STONE.
Suggestion that fair practices pro-
visions might well be embodied in the
Stock Exchange firms code was ad-
vanced by A. D. Whiteside. N. r. A.
deputy administrator, at the recent pub
lie hearing. Notifications might be
made to provide for the cost of admin
istration, he said, but added that these
would not be fundamental, nor would
they distort the code In any way. This
means that the code prepared for the
Presidents signature will not differ ma
terially from the temporary regulations
under which the brokerage houses have
been operating since Midsummer, local
brokers say.
At the hearing before Deputy White
side. who is the same official who con-
Quoted the public hearing on the Bank
ers' code, Walter Johnson, OF the Asso-
ciation of Stock Exchange Firms OF
New York, carefully explained the re-
cent rules of the Exchange gov>>1ng
the operations of brokers, custoIne>'
men and specialists on the floor. r. E.
Desvernine. legal counsel for the cooe
SPONSORS also testified at length at the
hearing.
Other witnesses included F. R. Hope,
president of the Association of Stock
Exchange Firms; William A. Lockwood,
counsel for the New York Curb Ex-
change Partners Association; w. G.
Paul, representing Los Angeles Ex-
change firms and j. B. Howell, rep
resenting San Francisco firms. These
witnesses testified briefly in favor OF the
code as presented though the two West
ern Coast representatives explained that
due to the time differential between
New York and the Pacific Coast their
firms we're forced to keep longer hours
than others throughout the country, and
as result. they might later apply for
some relief under the hours provisions
OF the code.
Would Include Commodity Firms.
An amendment was submitted to the
code by Mr. DeSvernine which calls Tor
meetings OF the Code Administrative
Board to be held "in such places as the
board may determine" rather than ex-
clusively in New York City as originally
provided in the code. The provision
calling for the Executive Committee OF
this board to meet in New York was
left unchanged Except for this amend
ment the code was heard as presented
on September 81.
Mr.. Desvernine pointed out that the
code included only brokerage firms and
does not apply to banks, investment
banking houses, or commodity firms. He
suggested that the labor provisions OF
the brokers' code should apply to COM
modify firms which are under the Agri-
culture Administration.
Mr. Whiteside replied that it would
be impossible to impose provisions OF
the code on commodity firms. but that
the two governmental agencies would
attempt to synchronize the two codes so
the labor provisions would be alike.
Explaining the representation Of the
industry which is backing the code for
exchange firms Mr.. Desvernine said the
Association of New York Exchange
Firms includes 66.2 per cent OF those
eligible for membership, and that other
firms connected with various exchanges
of the country which also favor the
code brought the total representation at
the hearing to 1915 per cent OF the
Stock Exchange business OF the country.
He stated that the New York associa-
ton was the logical sponsor" of the
code as 803 per cent of the business on
all exchanges of the country is trans
acted OH the New York Stock Exchange.
Brokerage Advice Being Curbed.
On the subject of labor provisions in
the code the witness pointed out that
brokers commissions are fixed, SO in
creased costs cannot be passed on to the
consumer. Further, an exchange firms |
business is limited in volume to that !
which customers demand, he said.
Under the new Federal securities |
act the giving of advice or suggestion in
regard to the purchase of securities is
subject to so many liabilities and re-
Strictions that it has been practically
discontinued by Stock Exchange firms"
Mr.. Desvernine said, in explaining why
business volume could not be increased
to take care of added costs under the
code
The code calls for a 40-hour week,
which is as low as can be justified by
the nature of the exchange firms busi-
ness, the witness said. He said the New
York Stock Exchange is open for 81
trading hours during the week and that
even allowing one hour for operation
of business before trading opened, and
one and one half hours after the trad
ing day, brokerage firms would be work.
ing a 42-hour week. Even this allow
ance is in many instances too short, he
added.
Speaking on the wage sections of the
code, he said that in the larger cities
minimums now in effect are in many
instances higher than in the code.
Several local brokers attended the
hearings. Two New York Stock Ex-
change firms have their head Offices in
Washington. About is others main
tain branches here.
Cleaned In Financial District.
Members of the local Life Under
writer's Association will hold their next
meeting on Wednesday evening, No
vember g. when the guest speaker will
be M. Albert Linton. president of the
Provident Mutual Life of Philadelphia,
Thomas P. Morgan, jr., head of the as
sociation, announced today. Every
member of the association has been
asked to invite bank official or some
bank employ to be guest at the meet
ing as it is intended to make the ses-
sion of special interest to all financial
men.
At an election in Westminster, Md,
a proposal to issue $250,000 bonds for
construction of sewerage system was
approved. The Federal Government
has allotted S289, 900 to aid in the work.
National Power & Light Co. has de-
clared the regular quarterly dividend
of 25 cents on the common stock, pay
able December to stock of record No
vember 6.
]. r. McDonough has been elected
president of eith-Albee- -Orpheum
Corporation, B. F. Keith Corporation,
Radio City TheaterS, Inc, and of their