Evening star., 1935-08-01
DEALERS SUPPORT
|. B.A. CODE RULES
Further Efforts to Preserve
Principles Outlined in
Wilbur Letter.
BY H. b. ROGERS.

BY II. B. hUOEhS.
WASHINGTON security dealers regis
tered unGer the investment bankers
code have received a letter from tbs
Code Committee outlining plans TO,
further effort locking to the preServa-
tion of principles and rules OF this
code. both for the protection of the
public as we'll as the maintenance oil
sound investment banking practices.
The letter was sent out by Rollin A.
Wilbur of this city, managing director
of the code committee, to more than
5000 securities dealers throughout the
country.
Sentiment in favor of retaining a
code was said by statement from the
committee to predominant among in
yestment bankers"
In reply to a general inquiry pre-
viouSly sent to all registered dealers
there was practically no opposition eX-
pressed to the idea of finding way
to continue the code. which expired
by limitation June Is. The S. E. c.
and N. R. A. are also said to favor
continuance of a self-regulatory and
self-disciplining organization among
securities dealers as an economical and
effective cooperative measure in en-
forcing fair dealing in securities trans
actions.
n. r. A. Discussion Cited.
In its letter, the committee calls
attention to the critical situation
growing out of the recent Supreme
Court decision invalidating certain
provisions of the national industrial
recovery act The committee now
proposes to retain the National and
Regional Code Committees. but with
only a skeleton staff in Washington.
A study of the recent N. I. R. A. de-
Cision of the Supreme Court and the
antitrust laws the committee says,
indicates doubt as to the feasibility
OF establishing the code at the
present time The code organization.
the committee points out. should take
up the problem and be prepared to
cooperate with the Government as
further legislation may be developed
RANT lAOlIlIlS 4d4l u dAC R4 dNNASN o5lNN
ments.
Vital subjects affecting the secu-
rites business are said to be under
consideration in Government circles,
and the committee emphasizes the
need for maintaining an organization
to present the viewpoint of the largest
possible membership of the investment
banking industry. Subjects under
official consideration, it is stated. in
clude such problems as additional re-
ouirementS for registration of dealers,
registration of outstanding securities
not dealt IN on the exchanges, further
forms for registration of new Secu-
rites, pegging and stabilizing secu-
rites in over-the-c counter markets,
separation of dealer and broker func-
tions, separating of underwriting and
distribution functions, additional regu-
lation of over-the- counter transactions,
and dealing in when-issued securities.
The committee suggests also that
q study of the code be made with
view to eliminating or modifying pro-
visions which experience has proved
unWorkable.
Greater Safety Stressed.
The investment bankers code was
widely hailed as a progressive step
for the protection of the public. The
document, which laid down numerous
rules for the information and safe
guarding of investors, also provided
unique system for registration of
dealers as a means of self-regula-
ton of the industry.
Since expiration of the investment
bankers code and the decision of the
Supreme Court the Code Committee
has continued its activities in a
voluntary capacity, together with the
II regional Code Committees through
out the country. Over 100 men
throughout the country have been
serving on these committees without
compensation. Pending a vote by
registered dealers on the question of
continuing efforts to preserve the
code the committee is maintaining
a small Office in Washington in charge
of a secretary.
The committee still maintains its
office at 1910 Vermont avenue.
Utility Issues Traded.
Trading was varied on the WASH
hgton Stock Exchange today, mostly
among utilities, with one bank stock,
American Security g. Trust Co., turn
ing over in five shares at 200.
Potomac Electric 512 per cent pre-
ferred sold at 1141s down to ia in
three transactions. Capital Transit
stock turned over in a block of 100
shares at 20. Washington Railway g.
Electric As went at los, and Washing
ton Gas IS B at 1034.
Takes Over Transit Firm.
Smiths Transfer & Storage Co. an
nounced it was taking over the May
flower Transit Co., effective today.
The Mayflower company is closing its
Offices in the Washington Building
and moving to the Smith warehouse.
at 1913 U street. william Bayless
of the Mayhower Transit Co. will be
the manager of this branch of the |
Smith business.
Six months of this year, according
TO Arthur Clarendon Smith, vice pres
ident and general manager, show
substantial increase in our ware
house trade"
Officers of the Smith company are:
Clarendon Smith, president and treas
urer; Arthur Clarendon Smith. vice
president and general manager; M.
c. Richardson, warehouse superintend-
ent; Mrs. George Burchfield, as
sistant cashier: ]. H. Gaszner, sales
manager, and William Bayless, man !
ager Of the Mayfower branch.
Refunding Shelved.
Field, Glore g. Co., as head of a
syndicate which had proposed to un-
derwrite an issue of first mortgage
20-year per cent bonds for Libby,
McNeill & Libby. last night sent the |
following wire to members of the
syndicate:
Libby, McNeill & Libby has de- |
cided not to refund its outstanding S |
per cent first mortgage bonds at this
time.