Evening star., 1942-02-20
New Auction Plan
For Stock OFFERINGS
Proves Success
Its Of Bon Ami B.
Sold on Exchange
At Fixed Price
Fy the Associated Press.

tDc hoSOClhtcu flcSS
NEW YORK, Feb. 20.-The New
York Stock Exchange got a work
out with the new system OF auction
block" merchandising methods yes
terday and many Wall Streeters pro-
nounced 1t a success.
Under a special dispensation of
the securities & Exchange Commits
sion the exchange has been grant,
ed temporary authority to advertise
on the ticker tape the fact that a
certain broker has a certain block
of stock for sale at a certain price.
The offer is good for three hours.
Yesterday block of 1883 shares
of Bon Ami "B" was put up at
S37.371z a share with the stipula-
ton that any broker selling all or
any part would receive 81 a share
commission. That was at 1::48 pm.
At 2:20 pm. orders began to come
If and before the close at 3 o'clock
there were 18 transactions involving
Its shares. Nine different firms
got customers interested in the
stock. The largest number of shares
sold to any one was 500 and the
smallest 10. Under the arrange
ment brokers cannot take the stock
for their own account and claim
the commission. at the same time.
The purpose of the method is to
promote the sale of sizable blocks
of stocks at a fixed price, rather
than make the offering in the open
market and run the risk of break
ing the price. The advantage to
the buyer is that he gets the stock
fiat" that is, without having to
pay the regular brokerage commits
sion.
Brokerage quarters expect the re-
naming 1,l83 shares of the stock
to be offered today under similar
terms.
Utility Offering Delayed.
The North American Co., billion
dollar public utility holding COM
pany. yesterday halted its plans
for the sale of its controlling in
terest in the Union Electric Co. of
Missouri to await more suitable
market conditions"
Postponement' of further action
on the proposed sale was announced
by Edward L. Shea. North American
Co. president, after special meet
ing of directors.
Public offering of the 2,695, 900
Union Electric shares through a
nationwide underwriting syndicate
had been scheduled for next Tues
day but Shea said that in view of
the directors action the North
American Co. has requested that
today's hearing before the Securi-
ties & Exchange Commission for
consideration of the transaction be
deferred.
Power Merger Approved.
The Securities Commission ap-
proved yesterday a plan under
which Pennsylvania Electric Co.
proposes to acquire six companies
and engage in a $50 $4,000 refund
ing program. The companies whose
assets are to be acquired by Penn
sylvania will be dissolved.
these companies are the Clarion
River Power Co. and Erie Lighting
Co., subsidiaries of Pennsylvania;
Associated Maryland Electric Pow
er Corp, Solar Electric Co. and
Youghiogheny Hydro Electric Corp,
subsidiaries of Associated Electric
Co. parent of Pennsylvania, and
Logan Light, Heat & Power Co., a
subsidiary of New York, Pennsyl-
vania, New Jersey Utilities Co.
The companies serve an area in
Western Pennsylvania extending
from the Maryland border to Lake
Erie.
Pennsylvania proposes to sell $32,-
500 900 of first mortgage bonds and
So, ,400, 900 of cumulative preferred
stock.
1t plans to use s28,946,3 $50 for the
redemption of its own publicly
owned bonds and $4,714,500 to re-
deem publicly-owned bonds of Erie
Lighting.