Evening star., 1934-10-01
TRADING
DENIED 10 FIRMS
U. S. Securities Commission
Refuses Registration on
Registered Exchanges.
BY the Associated Press.

By the Associated Press.
Signalling the control it began to
| administer over the Nations stock
exchanges today, the Federal Securi-
| ties Commission has refused regis
tration or unlisted trading privileges
on any registered exchange to 10 Sc
curitieS.
Not only is trading in these issues
prohibited, but brokers and dealers
are barred from using them as COL
lateral for loans for the purpose Of
| carrying or purchasing securities.
No Reason Given.
No reason was given for the black
list except that the commission acted
''in the public interest and for the
protection of investors" The list:
Brooklyn Manhattan Transit Corp
15-year secured per cent sinking
! fund bonds, series A, due June !,
l949;e Apponaug Co., no-par value
| common stock; Carondelet Building,
| Inc. certificates of deposit for first
mortgage SIS serial gold bonds;
| Gorham Manufacturing Co., voting
| trust certificates for no-par value
common stock expiring June /. 1899;
Helena Rubinstein, Inc. no-par value
| common stock; Knabb Barrel Co,
| Inc, $1-par value common stock
Rayon Industries Corp, class "a
common stock; Republic Stamping
and Enameling Co., no-par value
| common stock; Saenger Realty Corp.
' certificates of deposit for first mort
gage guaranteed 6l2 per cent serial
gold bonds; Saenger Theaters, Inc,
certificates Of deposit for first mort
gage and collateral trust sinking fund
per cent gold bonds.
The Brooklyn Manhattan Transit
security was said at the commission
to be an $4,000, 900 issue, on which a
hearing will be held Wednesday
Meanwhile, and until a final decision
] is made after the hearing. trading
in this security will be prohibited on
any of the "a registered exchanges.
Twelve exchanges have been grant
ed a 60-day exemption from registra-
ton pending further studies.
One Exchange Exempted.
| One, the New York Mining Ex-
change Of New Jersey, has been ex-
empted until the conclusion of hear
| ing begun Saturday on its qualifica-
tions The hearing will be resumed
| Thursday.
The commission has decided to put
| the 1884 Stock Exchange control act
into effect gradually lin order that
the business world may accopmodate
its course Of dealing to the require
ments Of law with minimum Of fric-
ton and inconvenience"
Accordingly, it has postponed until
] midnight, october IA, the effective
date of the Is to As per cent marginal
requirements fixed by the Federal Re
serve Board, the prohibition against
trading in any security whether regis
tered or not, except those to which
the commission has refused registra-
ton. and the restrictions on borrowing
| by brokers and dealers.
Among the provisions which become
| operative today are those penaliz-
! ing manipulation Of security prices
through pools and other similar meth
DDS, restricting the activities of spe-
cialists, penalidng short selling by Of
| flcers or directors Of the issuing COM
pany or any owner Of more than 10
per cent of any security, and granting
purchasers relying on statements filed
with the commission civil remedies
against those responsible for any mis-
information contained therein.