The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1941-03-29
Behind the
Ticker
Nv Lou SCHNEIDER

NEW NORh - The story can
now he told. A few weeks ago
your correspondent exclusively re-
ported that a leading New York
stock exchange member firm re-
eeived .hillet-douxr from the
securities and exchange commits
sion. Brokerage wire houses were
angry. They demanded that the
/ facts be told or retraetion
printed.
II was an off-the-record story
and so the name couldn't he dis
closed al that time. But now II
can be told. The firm IL Smith.
Barney a Co. The firm was cited
in two instances.
The first is that Smith Barney
failed To inform ms customers as
TO its own position in transac-
tons involving 26T 900 shares of
Fairehild Engine 4 Airplsne Corp,
back in April. 1899. The second
has 10 do with price sterilization
In the Feb. I. 1es1. off-market
offering of 10000 shares of du
pont.
Sensational - No matter what
the findings OF the business con-
duct committee Of the New York
stock exchange may be. the fact
Is that there Is doubt whether the
law was broken by the firm, of
which Charles n. Harding IN
member. Harding IL chairman Of
the big boards board Of governors.
To the public It's the most pro-
found Wall Street sensation since
the downfall of Richard Whitney.
former stock exchange president.
warnInx'wali street wonder.
II the Smith, Barney incident Is
what Retiring President Mcc. Mar
tin had In mind when, In his fare
well address to the membership
/ body, he said the stock exchange
wa. tarred for the next 10 yeas
by the Richard Whitney case and
warned against return 10 the
system OF special privilege that
had centered about the former
president.
II can't be denied. say Wall
Streeters. that the securities and
exchange commission played fair
by not blasting the Smith Barney
incident In newspapers. II APP
pears, they say, that the SEC is
allowing the stock exchange 10
show that IL can handle member
conduct matters in better style
than did the New York curb in the
Cuppia affair.
Opposition - The Smith-Barnsy
incident comes at an embarrassing
time The stock exchange mem
bership body IL waiting for the
slat. to be- published April IL con-
tanning the names to fill the vaosn-
cies Of IL governors and the chair
manship Of the august body. The |
smith-Barney publicity Will have a
telling effect.
But. says the managing partner I
Of a leading brokerage wire house.
II the slate doesn't show a goodiy /
representation of firms actually /
doing business with average" in /
yesiors, an opposition slate will be /
posted April IS. Then the fight /
will start.
Brokers doing an active national
business with small investors are
tired Of having IN. stock exchange /
managed by members Who repre-
sent firms doing ma jor portion /
~ their business as securities IN f
dsrariisrs. Tnsy say the manage
msnt hasn't accomplished thing
for floor trading activity. and a.
conditions cant be much worse.
they demand a change.
Report. Are That: Investmen, +
managers like second-grsde rail .
bonds, on dips Pennsylyanis
Railroads percentage earnings
gains ahead Of loadings percent i
age gam =. Investment managers
Ike iong-pull prospects Armenian
shipDuiioing :. For greater yield +
there's switching from Dow Chem !
iesl into American Tel. A. Tel.
American Sugar Refining re-
spending to higher sugar prices 4
because Of large inventory post
ton Van RasIte 10 benefit i
from increased consumer spending
Timken-Detroit Axle liked /
because Of small capital set-up
Amsricsn-Hawsiisn st.amship 10
beneGt from higher freight rates:
has 81 ships -. Stewart Warmers
die-csstins division showing mark
cd sales gains.
a.