The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-03-11
Listing of Bank Stocks
Likely to Be. Protested
by Executives, Dealers
Delisting Drive Argument of
1928 Believed
Holding Good.
BY VINCENT LYONS
Times Special Writer

NEW YORK, March 11.-Some 65
New York City banking institutions
with shares in the hands of the
public, today are manifesting inter
est in the implication given recently
by James M. Lands, chairman OF
the Securities and Exchange Com
mission, that he favored listing OF
such stocks on a registered exchange
rather than in the over the-counter
market.
Currently, only one institution
the Corn Exchange Bank Trust
Co., enjoys whatever distinction may
apply to having it's shares listed
On the New York Stock Exchange
Carrying Mr.. Lands inference to
its furthermost extremity, Corn Ex-
change would be joined, presumably
by the other banks in the metro
politan area.
1t is much too early to foretell
whether the bank stocks eventually
will be listed on the Stock Exchange
the Curb Exchange or remain in the
-the-counter market. 1t is not
too early, however, to entertain
thoughts of where opposition will
develop to any move which has as
its objective the elimination of bank
stocks from the over the-counter
Market
Dealers Reasons Obvious
In the vanguard of the opposi-
tionists are, of course, the the
counter dealers, and for obvious
reasons.
Banks, or at least a portion Of
them, might also be expected to
present some forceful arguments
against listing of their shares on an
exchange. Executives have some
telling points left over from their
campaign of 1927, when a delisting
move was started because OF too
rapid appreciation of bank stocks
on the Big Board.
The hullabaloo started in Sep
TENDER, 1927, when the Stock Ex-
change suddenly moved the 10
bank stocks from the bond post to
Post 80, or the inactive group. This
proved to be a misnomer, for the
switch automatically pared the
trading unit from 100 to 10 shares
and ignited the spark of specula-
ton
Ostensibly designed as a means
of stimulating activity in the bank
stocks, the transfer Immediately
back-fired. Bank executives, alarmed
over the gyrations, protested vehe-
mently. After several weeks of alb
sorbing such protests, the Stock Ex-
change recovered its position in No.
vember and ordered the stocks
brought back again to the bond
post.
Wiggin Followed Suit
This action, however, did not
definitely still the critics. A short
while later Charles E. Mitchell, in
his capacity as president of the
National City Bank, requested the
removal of his banks stock from the
list After some quibbling, the
Exchange said it would give consid-
Grafton to withdrawal applications
Albert H. Wiggin, chairman of
the Chase National Bank, emulat-
ed Mr.. Mitchell by asking for the
delisting of the shares of the bank
and the Chase Securities Corp. On
January l, 1928, the three issues
we're dropped from the exchange.
within the next few months Bank
of America, Chatham Phenix Ma
tional Bank and the Bank of Man
haitian also quit
Most of the other issues re-
manned on the Big Board until the
New Deal brought into being the
Securities and Exchange Commits
sion. All of them, with the excep-
ton OF the Corn Exchange, were
dropped when they failed to regis
ter with the SEC.
Restoration of the bank stocks to
listing, it is commended, would make
the issues available for margin &C
counts and thus create specula-
ton.