Evening star., 1935-10-28

1dent, presided,
and it was the II
first time that an p,,n. rr,,.
officia, of the ''H ""e'
Securities Exchange Commission has
addressed the organization.
According to dispatches received
here, Judge Burns told the invest
ment bankers the 20-day provision
serves useful purpose in giving an
opportunity for careful study of each
issue and discovery of possible dis
crepancies. The provision was aimed
to prevent blind buying" he said,
adding that investment bankers had
not yet made a strong enough case to
cause its elimination.
The outstanding characteristic of
American underwriting is its whirl-
wind speed" he said. Unless the
syndicate books are closed almost in
a matter of minutes, the venture has
the stigma of failure.
mo great power of analysis is nee
essary for one to realize that this
process of almost instantaneous COM
mitment is responsible for many OF
the evils which thoughtful men de-
precate in your business"
Simple Counter Rules Seen.
Judge Burns recalled that one re-
cent American issue had gone sour"
because in the rush to make commit
ments one dealer had taken much
more than he could sell and had to
throw back much of his allotment on
the market.
He declined to give an outline Of
possible proposals for revisions of the
Federal securities legislation at the
next session of Congress.
He also said he would have to disap-
point the convention in its expectation
of an explanation of rules for over
the-counter dealers, to become effec-
tive January l. But he asserted the
rules thus far promulgated are ''of a
very simple nature and involve moth
ing startling in concept or method"
Judge Burns denounced critics as
persons who see a public servant
either as a pop-eyed radical commit
ted to a program of revolution, or
cringing, timid, spineless slave to the
Wall Street money barons."
Crane Predicts Prosperity.
AS look ahead into the coming
year cannot help but feel that we are
approaching another very prosperous
period in our history" President Crane
declared.
But" he urged. "let us all profit
by the mistakes of the past and so reg
ulate our business that when the next
depression comes, as it will. We will
not have to apologize for or explain
our actions"
Crane, an officer of the Wall Street
investment banking house of Brown,
Hartman e. Co., said he expected the
transition from the present period of
refunding to a period of raising new
capital could take place ANY time
now" but he was reluctant to ex-
press an opinion as to just when it
would occur.
THE S. E. c. is earnestly trying to
operate the securities act to give in
vestors a square deal and still not
interfere with the normal operation
and procedure of the new securities
markets." he said.
He looks for an end to the ex-
tremely cheap money period as
factor in bringing corporations into
the market for new capital. With
growing business and confidence, he
predicted that industry would event.
ually enter the new money markets on
a large scale, the huge money reser-
Voirs hardly being tapped as yet.
Benton Discusses P. w. A. Aims.
Philip M. Benton of Washington,
director of finance for the Public
Works Administration, according to
the Associated Press, told the con-
vention that P. w. A. would be glad
to retire from the job Of financing
public works when the time comes
that private capital can once more
fully meet the demands upon it,"
He explained that, as matter Of
fact, private capital is already re-
suming its normal functioning, and
"the need for Federal agency such
as the P. w. A. is becoming less i'm
perative."
He pointed out that P. w. A.
bought municipal bonds at a time
when they were drug on the mar
ket. He said P. w. A had already
sold to the public or retired about go
per cent OF its municipal bonds and
40 per cent of its railroad securities,
representing total of s22o,0O0,oOO.
The amount sold to the public, he
said, amounted to about 100000, 900,
at profit to the Government of over
$2,500,000. He added that the profit
was incidental, however, and that
p. w. A. was not in business to COM
pete with the investment bankers.
Exchange Session Lively.
Riggs National Bank preferred and
common stocks were active on the
Washington Stock Exchange today
several small lots changing hands.
The preferred sold at 1852 and los
and the common at 21l. Real Estate
Title Insurance Co. was out today at
106 and Potomac Power 51a per cent
preferred at lis.
Woodward & Lothrop preferred sold
at lis today, a new high. In the bond
department, Washington Gas SIS, 1860,
were strong at 1854. Capital Trac-
ton SIS led the market in volume.
selling at 96. Vice President Karl W.
Corby presided today, President Y. E.
Booker being at White Sulphur
Springs.
Net railway operating income of the
Baltimore g. Ohio Railroad in Septem-
ber totaled $2,519,549, a gain of s104.-
3l1 over September, 1884, the road re-
ported this noon. Net railway op-
grating income for the first nine
months of 1885 was reported as ST.
343,634, off s962,922 from the like
period a year ago.
George L. Starkey, president of the
National Bank of Washington, was
back at the bank today after a two
week vacation, passed in Pennsylvania.
COTTON GOODS FIRM.