The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-04-29
CHANCE FIGHT
ON INCOMPLETE
REPORTS OPENS
Allied Chemical First to Feel
Effects of New
Ruling.
BY ALBERT X. ETTLTNGER
Times Special Writer


Times Special Writer
NEW YORK. April 29.-Warfare
that had been Smoldering in the
shadow for more than a year be-
tween the Stock Exchange and COR
pOrations which do not furnish
stockholders with sufficient and
complete information in their
financial statements broke out into
the open this week when the Ex-
change threw down the gauntlet to
the Allied Chemical and Dye Cor
poration, Americas gigantic chem
ical combine. with total assets of
more than S400,000000
A showdown is imminent next
Wednesday, when an opportunity
will be given officials of tine COM
pany to present their case before
the governing committee of the Ex-
change. If the Exchange so desires
and deems it necessary in conform
ity with policy adopted nearly
two years ago, it may play its trump
card and only apon-removal of
the corporations stock issues from
the list.
Bluntly-more so than at any
time in its history-the Stock Ex-
change has met the issue with I'M
usual force, and the decision Wall
Street believed today, rests entirely
IN the hands of Orlando F. Weber,
president of Allied Chemical, and
his board of directors.
Action Is New
On many occasions the Stock
Exchange has suspended or removed
from dealings various securities, but
such action was never taken or even
threatened for failure to provide
shareholders with the full informa-
ton to which it believes each stock
holder is entitled.
With the Allied Chemical case. it
is thought, the Exchange had def
nltely decided to come out into the
open against companies whose re-
ports do not include specific data in
connection with each published
item.
Its action recalls the statements
made by Richard Whitney, presi-
dent, some time ago in Philadelphia.
Whitney at that time went on
record as follows:
Let me say definitely that here
after, when the committee on stock
list is advised and has determined
that a corporation is employing a
method which, in its opinion, is I'M
sound or is violating an important
agreement with the Exchange. it
Will report the facts to the govern
ing committee and will request that
committee to give public notice that.
unless the above is promptly
remedied, the stock of the corpora
ton will be stricken from the list"
Whitney declared further that
stockholders will be given an ade-
quate opportunity to compel the
management to change the obiec-
tionable practice before the stock is
stricken from the list. and if a
proper change is promptly made.
the security may remain upon the
Exchange.
Stockholders Ignored
The "abuse" in Allied Chemicals
case centers around the corpora
tons balance sheet. When the 1892
report of the company was pre-
Sented to stockholders at the an
nual meeting about a week ago.
stockholders sought in vain for
complete information in connection
with certain items, especially the
nature of investments carried at
$92404, 341.
Stockholders also requested that
the corporation furnish a more de-
tailed income account. The OBJ
Jectors, who included James w.
Gerard, former ambassador to Ger
many, were told there would be no
change
The committee on the stock list
OF the exchange has been pressing
Allied Chemical for more than a
year in the matter at issue.
The special report of the COM
mittee, issued Wednesday, showed
that correspondence was exchanged
with the company on March %,
June %, July 7 and Aug. %. last
year, and that replies to inquiries
were made by the corporation.
On March 26 last, Frank Altschul.
chairman Of the committee On the
stock list, addressed final and
lengthy communication to Orlando
Weber, head Of the company.
That Altschuls efforts proved
fruitless is indicated by the clos
ing paragraph in the committees
special report in which he saws:
In view Of the foregoing CORE
spondence and the press statements
referred to, the committee on stock
list is forced to the conclusion that
further discussion with the corpo-
ration will prove unavailing, and,
therefore. reports the matter to the
committee for such action
as it may deem appropriate IN the
circumstances"