Evening star., 1936-09-10
Attention drawn
TO S. {. c. HEARING.
Application for Removal of
Issues From Curb List
Raises Big Problem.
BY FREDERICK GARDNER.
Associated Press Financial Writer.

AS6ociateo Pre6S FINANCIAL writer.
NEW YORK. September 1o.-Bro-
kerage quarters expect hearing set
for tomorrow before the Securities and
Exchange Commission In Washington
to focus attention on the question
whether public interest Is best served
by trading on or on organized ex-
changes.
The hearing was called to take evi-
dence on the application Of Tweedy a.
Co., Of New York, security dealers, for
removal of two issues from the New
York Curb Exchange.
The stocks at stake are not particu-
larly well known but the major prin-
ciples involved are regarded In Wall
Street as important.
Regarded as Test Move.
It Is the first move by so-called
"over-the- e-counter" interests. dealing
in securities on the organized ex-
changes, to sound out the attitude Of
the s. E. c. under the recently ap-
proved amendment to the Securities
Exchange Act permitting continuation
of trading on registered exchanges in
securities not formally listed.
Tweedy & Co. Is expected to present
its case alone. However, exchange
and over-the-counter interests gen.
orally are waiting the outcome early
in the belief it would have a bearing
upon the future of the far-hung
counter market, growth Of the big
exchanges and Federal control OF
trading practices.
Tweedy g. Co. asked removal Of the
capital stocks of the Piedmont &
Northern Railway Co. and the City
and Suburban Homes Co. from una
listed curb trading on the ground
their market there Is relatively In
active.
Rooney to Present Case.
T. F. Rooney, trader for the over
the-county house, who is expected to
present its case to the commission
says only so shares of the railroad
issues were traded on the curb in the
first half of this year and none las,
year.
He holds Tweedy & Co. have made
the main market for the stock of1
the exchange and that trading should
be concentrated In the counter
market.
Since 1t is up to the applicant Il
show cause for removal, the Curb i
expected to be represented chiefly ir
an interested observers role. Ohiciall
Of the New York Security Dealers
Association, an organization of over.
the-counter interests. said the asso.
citation also would take q side-line role
But some have envisaged . battle
between exchange and over-the.
counter men eventually for q shift oi
securities to and from the EXCHANGES
Others Await Result.
Another over-the-counter house hai
applied for removal Of the preferred
and common stocks Of the American
District Telegraph Co. from the Curb
Other similar moves are said to b<
waiting outcome of the Tweedy apph.
cation.
The curb, runner-up to the New Yori
Stock Exchange In size, with ticker.
in more than 20 leading cities and as
sociate members in "a States, on Au-
gust II had 719 share issues and 436
bond issues in its unlisted department
Many have highly active market
with turnover in some running into
thousands of shares on busy days.
Some over-the counter men have
cautioned against aggressive attempts
to get issues from the curb. They fear
the exchanges may retaliate after
November ~ when they may apply for
unlisted trading in securities for which
there Is available information COM
parable with data filed for listed issues,
This is expected to open the way for
. shift Of many bond issues, particu-
larry, from over-the-count to ex-
change trading.