Evening star., 1938-08-18
NEW YORK STEAM
BUYERS ASSURED
Threat of Litigation Over
Consolidated Edison Co.
Guaranty Doubted.
By DONALD B, .HADLEY.

CUeam corp. IlTSt mortgage SR per
cent bonds of 1868 faced an unusual
situation when they received word
that a stockholder of Consolidated
Edison Co. was planning legal steps to
block that company's guarantee of
the bonds.
News of the development came in
supplement to the prospectus which
quoted an opinion of counsel for both
the companies and the underwater
that "the contentious of the COM
plainant are without merit, that Con-
solidated Edison Co. does possess the
power to guarantee the bonds and that
its guaranty will be valid and effec-
tive
1t was believed this opinion would be
generally accepted by the buyers and
that IN the remote event the guaranty
should be blocked, question could be
raised as to whether there had been a
bona-fiide sale and provision made for
return of the purchase price and the
issuance of new securities.
A number of veterans said the situ-
alton was first of its kind "a their
memory. Most of the brokerage houses
and banks here participated in the
issue.
Buys Hyattsville Bonds.
Y. E. Booker g. Co. was the success
full bidder yesterday on $60,000 3a
per cent serial bonds Of the city Of
Hyattsville, dated August Is, 1898,
and maturing at six-month intervals
from February Is, 1910, through 1949.
The price was 10l.572.
The bonds are being offered today at
prices ranging from 2 per cent basis
for the shortest maturities up to a 35
per cent basis for the longest ma
turtles.
Proceeds from these bonds are to
be used for street improvements.
Trading Code Drafted.
The National Security Traders As
sociation has formulated uniform
practice code. covering all inter-city
security transactions of the associ-
atoms 2,100 members, who represent
1,400 security houses. Local associ-
ations of over-the-counter houses in
various cities have put uniform regu-
lations into effect in recent years COW
ering local trading. but the present
code of the association is the first at
tempt to formulate uniform practice
code on national basis.
The object Is to settle some Of the
controversial points which cause mis-
understanding between traders in
various cities. and to facilitate ham
ding of over-counter trading. The
code will apply only when trades are
made between different cities.
The membership of the association
is composed Of individual traders,
some of whom cannot commit their
firms to adoption of rules of this char
acter. Each member will receive a
letter requesting him to have his part
ners or employer approve the adoption
of the code and voluntarily sign an
agreement to abide by it.
1t covers in detail such subjects as
delivery of securities. description of
securities dividend claims, computa-
ton of interest, units of delivery, buy
in procedure. shipping charges, COM
parsons. ex-dividend dates and many
other phases of over -the-counter
trading.
The code was formulated by a COM
mittee headed by Willis M. Summers
OF Holt, Rose d Troster
The present code has been in pro-
cess of construction for the past year.
In the main, 1t reduces to writing gen.
eral customs which have prevailed for
some time past in over-counter
trading.
New Issue Calendar.
The American Bankers gives the
following new issue calendar:
s2S,o0o,0oo Phillips Petroleum
cow. deb. 3s-1948 Aug. 10
100000 Crucible Steel
Corp. 4l2s-1948 Aug. "a
s33,000,000 Commonwealth
Edison 31as-1968 Aug. as
$3s.24l, ,595-plus cow. deb.
31as-1958 NEUTRALITY-SUSPICIOUS. Aug. IS
S20,000,000 Lone Star Gas
conv. deb. 312s-1958 Aug. 25
sl0,00O,OO0 Gulf States Utili-
ties lst Aug. 81
$30,000,000 Youngstown Sheet
& Tube cow. deb--- Sept. =
d. C. Exchange Is Quiet.
Washington Gas Light preferred was
the only issue traded on the Wash
ington Stock Exchange today. Three
10-share lots and 5-share lot
changed hands at 9912 After the call
28-share lot and 10-share lot were
recorded. also at 991a.
The Financial Reporter says the re-
slack in S. E. G. circles with respect to
mainder of August will be unusually
the issuance of new orders. opinions,
etc. With the exception of Commits
sioner Robert E. Healy all of the COM
r1ssioners are away on vacations.
About 200 members and guests of
Washington Chapter. American In
stitute OF Banking. will go on the an
nual moonlight cruise down the Poto-
mac tonight. starting at 8 o'clock.
Remodeling Of the basement of the
National Savings q Trust Co. incident
to the widening of New York avenue
will be completed this week. A strip
8 feet wide was cut from the banks
basement fronting on the avenue.
Financial District Notes.
William D. Hoover, chairman Of
the board of the National Savings
Il Trust Co., is spending several
weeks with his daughter and her chill
dren at New London, N. H.
W. T. Vandoren, vice president and
cashier, started his vacation Monday
with tonsil operation and is re-
ported getting along nicely. While
Away from his duties, he also plans
to move into his new home on Irving
street in Chevy Chase.
Az Chester Flather, manager of
the AuchincloSs, Parker e. Redpath
office here, is spending the month
with his family at Winsted, Conn.,
Edward R. Finkenstaedt, a member
Of the Auchincloss staff, is recover
, ing from a serious illness at VAIN