Evening star., 1947-10-30
Antitrust Suit Is Filed
Against II Largest
Investment Bankers
Monopoly in Handling
Securities Charged in
Action on New York Firms
BY the cioted Press

Attorney General Clark today
announced the filing of a civi.
antitrust suit against II of the
largest investment banking firms
in New York. The suit charges
a conspiracy to monopolize the
handling of securities issues.
In addition, the Government asks
for dissolution of the Investment
Bankers Association of America
which maintains headquarters in
Chicago.
Mr.. Clark told news conference
that suit is being filed in Fedora.
Court for Southern New York.
Suit Zone of Largest"
He described the suit as "one Of
the largest and most important in
the history of the antitrust laws"
The complaint alleges the II bank.
ing firms have conspired to re.
strain unreasonably and to monop-
oliZe the securities business in this
country by restricting, controlling
and fixing the channels and meth
ods, the prices, terms, and conditions
upon which security issues are
merchandised."
The securities were described in
the suit as covering stocks, notes
bonds, debentures or other interest
certificates.
Companies Listed.
The defendants have their prin-
cipal Offices in New York and many
maintain branch offices elsewhere
They were named as:
Morgan Stanley & Co., Kuhn
Loeb & Co., Eastman, Dillon & Co.;
Kidder, Peabody & Co.: Goldman
Sachs & Co.; Lehman Bros, Smith
Barney & Co.; Glore, Forgan & Co.
White Weld & Co., Drexel & Co., the
First Boston Corp, Dillon, Read &
Co., Inc; Blyth & Co., Inc; Harri.
man Ripley & Co., Inc; Stone &
Webster Securities Corp, Harris
Hall & Co., Inc, and Union Securi.
ties Corp.
Mr.. Clark told reporters that some
$4,000, 100000 in securities had beer
issued in the United States during
the last 10 years, and that the de-
PENDANTS managed the sales OF
about SO per cent of the total, ag-
gregating about $14,357 10000
Several defendants promptly is
sued statements denying the
charges.
In New York Harold Stanley y,
Morgan, Stanley g. Co. said the suit
is utter nonsense"
Charges Are Denied.
THE charges are just not true,
he said, adding:
Our business is the most com.
petitive and the most regulated
know of. Our daily life is full ot
competition. " 1t is silly to assert
We have any agreement with any
one to restrict competition or thai
we are part of monopoly"
Col. A. M. Pope, president of The
First Boston Corp, said:
1--WE find nothing in our own pro.
cedures to warrant the charges made
by the Attorney General. We ds
not believe that the best interests
Of either the consumer or labor OF
industry are served by this actor
and are confident of vindica ton ir
the courts"
John M. Hancock, partner of Leh
man Bros, said the charges do no
jibe with the facts"
Either these charges are based or
ignorance of how business is done,
Mr.. Hancock said, "or this is an.
other campaign against American
business made for purposes that viii
not stand the light of day"
The suit alleged the II banking
firms haa conSpired:
l. To eliminate competition amons
themselves.
2. To eliminate competition of othel
investment bankers and of othe,
prospective purchasers of securities
3. To prevent, restrain, minimize
(See BANKERS, Page A-6.)