Evening star., 1934-09-11
EXCHANGE SPEEDS
SECURITY FILINGS
Capital Market Officials
Urge Early Action for
Registration.
BY EDWARD c. STONE.

1DgJOn SIOCK EHCEdnRe, III conformity
with the rules of the Exchange Con-
troll Commission, are being made by
exhange officials Applications must
be in by September Is Many have
already been filed but a good many
others are still awaited.
In calling immediate attention to
this matter. Karl w Corby, secretary
of the exchange, has dispatched the
following letter to corporations which
have not yet acted:
ION August 20 circular letter was
sent to you with copy of rules and
regulations for temporary registra-
ton of listed securities as adopted by
the Securities and Exchange Com
mission on August 13. There was also
forwarded to you with this letter three
copies of Form 2, which is an ap-
plication for such temporary registra-
ton, and which we requested you to
fill out and sign and return to us as
soon as possible. We further stated
that these applications must reach
the Washington Stock Exchange Office
not later than September 13, 1884, in
order to insure the fact that securities
covered thereby will remain tempo
rarily listed and will be registered on
and after October l, 1884.
Should this application not be re-
ceived it would be necessary to suspend
trading and the availability of the
securities in question as collateral for
loans, in certain instances, would be
impaired.
ut has come to our attention that
the delay in making application for
temporary registration by corporations
has been occasioned in some instances
by the impression that corporations
whose securities are, or may be- traded
In over the counter will have an ad-
vantage over those securities which
are registered. If this has been con-
alteration which has delayed you in
making application we invite your at
tention to the attached letter, which
deals with this subject and comes
from the Securities and Exchange
Commission, signed by Joseph P.
Kennedy, chairman"
Counter Rules Being Drafted.
The letter referred to by Secretary
Corby, received by Eugene E. Thomp-
son of this city, president of the As
sociated Stock Exchanges, states
clearly that corporations listing their
securities on all exchanges are to
suffer no disadvantages. Chairman
Kennedy asserts that there are ample
rules and regulations to control over
the-counter trading and that these
soon will be applied to unlisted Sc
curities. Such regulations are being
drafted, but are not ready for distri-
button.
Mr.. Thompson had complained to
the commission that some corpora
tions seemed to be under the impress
sion that they would have advantages
by counter trading over the listed
and registered securities. In reply
Chairman Kennedy said that such
rules covering over-the-counter mar
kets will be drawn up as will protect
the investing public in the same man
ner as will the rules governing regis
tered securities. Only pressure of
work has prevented such action al
ready. Right now much attention is
being paid to the manipulative provi-
sions of the law In concluding his
letter, Chairman Kennedy added
by reason of the great pressure
of matters relating to the registra-
ton of exchanges and corporations
seeking registration, it is unlikely that
the commission will find it possible
to promulgate the rules and regula-
tions governing over-the- counter trad
ing prior to September Is, 1884, as
suggested in your letter. However,
considerable research and investiga-
ton have already been completed by
the commission, preliminary to the
formulation of such rules and regula-
tions. and the work is progressing as
rapidly as possible. In particular, Sc
rious consideration is being given TO
those rules and regulations relating
to securities which have heretofore
been listed or admitted to trading
privileges, with view to insuring that
corporations which apply for registra-
ton of their securities will not be at
disadvantage in relation to those
which fail to make such application"
Financial District Gossip.
Bankers here declare that President
Francis M. Law of the American
Bankers Association rang the bell'
yesterday in his suggestions for a new
deal for bank examiners. Use of the
"rule Of reason instead of the book
rules" is what local bankers have
urged for a long time. There are
plenty of good loans that are slow,
Mr. Law says, and must run over a
period of years. Every bank may
properly have a reasonable proportion
of "slow paper" Many banks would
starve to death without it. The
country, he said. cannot be liquidated
on 90-day basis, adding that all the
banks are super-lquid and anxious to
make just as many sound loans as
possible.
Business conditions are very much
better than at this time last year, say
Slauson, White & Rose, representa-
tives of Independence Fund of North
America. The firm has just received
notice that sales in their line have
improved over so per cent so far this
year.
Sales of Peoples Drug Stores, Inc,
showed a substantial gain in August
over July. The July gain was but is
per cent above the same month last
year, while August was up 7.8 per
cent
Today's Trading on Exchange.
Capital Traction SIS opened business
on the Washington Stock Exchange
today with $1,000 selling at 88. The
next sale was 1000 Potomac Electric
Power 6s at 109. Trading then turned
to stocks.
Potomac Electric Power 6 per cent
preferred moved at ma The same
corporations 512 per cent preferred
opened at 11112 and closed at 1113:
Washington Railway g. Electric pre-
ferred was also wanted, six sales TAX
ing place at 99&4, the days turnover
being So shares.
Security Storage Co. stock came out
today for the first time in some weeks,
IA shares changing hands at 90. The
stock closed with 80 bid but none
offered.
Business so far this month has
shown a decided pickup, the answer
to the after Labor day business outs
look being fairly favorable Officials
of the EXCHANGE are natllra IlV nlpaSe3