Evening star., 1941-09-22
Exchange Asks Vote
On Plan for Trade
Organization
Membership Will Act
October 7; Proposal
Favored by Sehrom
By the Associated Press.

By the Associated Press.
NEW YORK, Sept. 22.-Reorgani-
zation of the Association of Stock
Exchange Firms into a national
trade organization to promote the
interests of the Stock Exchange with
the public through advertising and
with governmental agencies, as in
dorsed by Emil Schram, new presi-
dent of the market, will be voted
upon by members of the association
October 7.
A scheme of reorganization, as
adopted by the associations Board
of Governors, was submitted to its
membership today with a letter
from Schram, saying: The plans
which have been outlined are we'll
calculated to extend the public use
fulness of our industry and, at the
same time, to create a wider demand
for the services of the exchange,
its members and member firms"
Activities Outlined.
The outline states the following
definite activities are contemplated:
Il. Wider use of advertising and
other sound international media;
%. Cooperation among member
firms in the maintenance of adyer-
tising standards and in encouraging
the legitimate and productive use of
advertising;
%. Continuous and intensive edu-
cational work by members of the
New York Stock Exchange COM
munity in all sections of the
country; ""-
4. The production of a motion
picture of high educational and en-
tertainment value; -
''5. Active sponsorship of the Ex-
change magazine, with publication to
be continued by the Stock Exchange;
"6. Production of variety of lit
erature for distribution; -"
II. Cooperation with public off,
cials and agencies, national, State
and local, in endeavoring to elm
mate the sale of questionable secur-
tiles and in exposing fraud and de-
ceit in the sale of securities;
"8. Expertly directed campaigns
for tax relief, city, State and Fed
eral, with special emphasis upon the
stock transfer and the national cap
ital gains tax;
"9. Appearance before legislative
committees, Government agencies
and other bodies with respect to
matters that affect our industry and
the investing public;
40, The fostering of harmonious
relations between the New York
Stock Exchange and regional ex-
changes and other securities organ.
/ izations."
Urged Three Months Ago.
The plan represents the first major
public move by Schram, who re-
signed as head of the Reconstruction
Finance Corp. and came to New
York to head the exchange three
months ago as its first president not
selected from its own membership.
He proposed such a reorganization
of the association in an address June
25. 1t would, in effect, take much
Of the public relations activities
away from the Wall Street organiza-
ton, and place them in the hands
Of national body. Schrams letter
said the association has wisely pro-
vided for gradual development of its
program" The plan calls for a
budget of 100000 for the first year.
A new board of governors would be
selected, IS from New York and Is
from out of town.
The plan points out that the ex-
change alone has only 1900 mem
bers, but has 1000 allied members,
1000 registered representatives and
900 branch office managers. Adding
the various personnels, it states,
makes 10000 persons who can par
ticipate in the program.