Evening star., 1942-10-27
Investment Dealers
Oppose New Rule
Proposed by SEC
Nutionol Association
Seeks to Continue
Self-ReeuIotion
BY EDWARD c. STONE.

BY EDWARD G. STONE.
Washington members Of the Ma.
tional Association Of Securities
Dealers have joined in . protest
made by the Board Of Governors
against new rule proposed by the
Securities and Exchange Commis-
sion which calls for the Disclosure
Of market price" Of securities sold
by investment houses. The rule
seeks Ito protect the investor by
preventing the purchase from or
sale to him of An unlisted security
at q price bearing no reasonable re.
lationship to the price at which the
security could be bought or sold at
the same time In the open market"
Wallace Fulton, executive direc-
tor of the national association, has
forwarded to the Securities Com
mission the views Of investment
dealers all over the country and reg
istered vigorous opposition to the
proposed measure. The governors
declare that the national association
is making splendid progress In
bringing about self-regulation Of
the securities industry and add the
belief that no further restrictive
rules and regulations are needed.
Would Mar Association Work.
The governors declare that adop.
ton Of the rule would mean the
end Of the National Association Of
Securities Dealers. The association
has been giving practically all its
time and funds to working for fair
practices among dealers, having
carried out extensive examinations
Of the various Offices by accounting
specialists. The new rule, the let
ter to the SEC says, would obviate
the need for these examinations and
render the work Of the association
Of very little value.
The investment dealers consider
the rule unavoidable. In II months
$500 members of the association
have been examined; fair profits
policies have been studied; disciple
nary action taken when needed, and
ITO complaints filed against MEM
bers. The communication adds that
the great majority of securities
dealers are members Of the associa-
ton and can be reached through
these channels.
James Parker Nolan and Harold
c. Patterson are the Washington
members Of the committee which
has made a special study Of the
proposed SEC plan.
Western Maryland's Net Up.
Earnings of the Western Mary
land r. R. in the first nine months
OF 1912 were equal to $1498 on the
first preferred stock, against $1l.42
in the like 194l period, it was re-
ported today.
Norfolk & Western r. r. today
reported earnings in the nine
months equal to $o.97 per share on
the common stock, compared with
$14.97 on common In the same
months last year.
Washington bank STATS will en-.
Joy two holidays in November, ono
ION Wednesday, November II, Arnis-
tice Day, and the other on Thanks
giving Day, November 26.
Maryland and Virginia banks will
have these two holidays and also
election day, November 3.
Traction IS Lead Exchange.
Capital Traction IS, which were in
extra demand at the opening of the
weeks trading on the Washington
Stock Exchange, have been by far
the most active bond issue on the
exchange this year. The volume Of
trading in Traction IS has now
passed the $4,000 mark.
The bonds opened the year at 103
and are now selling at 1854, of
half point from the recent high
of LOG. At present prices, the bonds
yield better than $50 per cent, the
highest yield Of any Of the public
utility issues at this time.
Washington Gas Light first IS
stand second in trading volume so
far this year, with a $4,000 turn
over. They also are the highest
priced bonds in the list, selling re-
Gently at 1271a, to yield sos per cent.
Pepco Preferred Strong.
Potomac Electric Power 51z per
cent preferred stock was strong on
the Washington Exchange today.
two lots selling at 1l4h, up half q
point from the last transfer and
within half point Of the high for
the year.
American Fire Insurance stock
now is included In the ex-dividend
list, along with Washington Gas
Light issues, National Savings &
Trust and Washington Loan &