davidaulloa/AmericanStories huggingface dataset:
Evening star., 1962-05-27

ton is in progress with respect
to others.
A barometer of what the Dis
trict securities problem was may
be seen in the great number of
enforcement actions brought by
the commission and complaints
filed by the NASD against Dis
trict broker-dealers. During the
four-year period up to June 30,
1853, total Of II administrative
proceedings were brought by the
commission against District
firms. From July /, 1859, to May
z, 1862, a period Of less than
three years, a total Of 20 such
proceedings were brought, nearly
twice that of the previous period.
Similarly, from July /, 1866, to
June 80, 1859, only two injunctive
proceedings were brought against
local firms. From July /, 1859, to
May z, 1862, 18 such actions have
been brought, an increase of 900
per cent. The commissions
Washington regional office has
brought more of these actions
against District brokerage firms
than firms in all other States for
which it is responsible Mary
land, Virginia. West Virginia, Del
aware and Pennsylvania.
Data furnished to the commits
sion by the NASD is likewise IL
Eliminating. The NASD has indi-
Gated that, over the last five
years, the number Of complaints
filed against District broker
dealers increased $50 per cent,
over three times the national In
crease of 215 per cent. Further,
in 1860, the NASD filed COM
plants against 8 per cent Of its
members nationally, whereas, for
the District, the figure was rs
per cent. Thus, one out of four
District firms was the subject of
an NASD complaint involving
some infraction of its rules. In
1861, possibly because of the in
crease in the number of local
firms that went out of business,
the Districts percentage dropped
to 18 per cent, but this was still
twice the number of complaints
per member as the national per-
centage.
The number Of local broker
dealer firms that have gone out
of business is an additional meas
ure Of what has been the poor
health of the broker dealer COM
munity here. Nationally, in 1861,
approximately 8 per cent of the
firms admitted to the NASD
failed. In the District, 18 per cent
of NASD member firms failed.
This rate of failure has presented
a grave danger to the investing
public and has resulted in sub
stantial losses by many investors.
One recent District broker dealer,
which is now in bankruptcy, has
debts of well over 81 million and
few assets. Hundreds of individ-
ual public investors dealing with
this firm failed to receive certifi-
Gates for which they paid, or pro-
ceeds from stock which they sold.
1t is doubtful whether they will
Evening star., 1962-05-27

What Is this creeping nonsense
about breakfast conferences?
They now have crept into the
White House. They were there
even before Dwight Eisenhower
left and are finding sanctuary
under John Kennedy.
They should be nipped in the
cornflakes before they go any
further. II there is one institu-
ton that should be kept personal
and private, it's breakfast. It is
no fit time to confer about any
thing, as all seasoned husbands
and wives must have known for
long time, else they would have
broken up their marriages with
early-morning spats before they
learned to forgive each others
foibles.
1t was bad enough when the
busy bees who are forever buzzing
with important matters desecrated
lunch with their intrusions. Be-
Evening star., 1962-05-27

new classrooms for perhaps $4,000
kids, more roads, more sewers,
beefed-up police and fire protec-
ton; more special assessment dis
trictS, more property taxes.
But still they pile pell-mell into
California'S crowded cities.
And then there are tourists,
nearly five million a year, most of
them in southern California. And
many, alas, are writer's. Straying
no farther than the Bel-Air Hotel
or the Mark Hopkins, with ivy
league suits and buttoned-down
minds, they complain, martini in
hand, of California's anti-intellec-
tualism, materialism and hedon-
ism. Many zero in on Los Angeles.
They contend the city of the
Angels is Smog- laden melange of
suburbs, its ASS square miles
bounded by Disneyland, Marine
land, Hollywood. TV studios, and
the Rose Bowl. They character
ize L. A. as a fools paradise
brimming with crackpots, cult, IS,
Evening star., 1962-05-27
California to Be Most Popu|ous State in December

eide. About 93.7 per cent of the
city's -335.000 Negroes are
crammed into a single district in
the center Of town-and q Negro
leader recently complained that
segregated housing in L. A. is
worse than in any southern city.
San Francisco has problems,
too. The City-just call it that
and everyone in California will
know you mean San Francisco
leads the Nation In its rate of
suicide and alcoholism.
People come here to escape
their troubles but they bring
their problems with them" says
DR.. Robert Kimmich. chief of the
the City's mental health serv-
ices.
L. A. suffers from lack of a
central core, s. F. is all core:
Sunwashed houses only two inch
es apart, lonely people crowding
against each other, more unmar-
ried people living alone, per capi-
ta, than In any other urban area.
The Missing Persons
Oscar Wilde noted, about the
turn Of the century, that every
missing person invariably turns
UP In San Francisco, the last
jumping-off place in the conti-
mental United States. And this
glittering. teeming, night time
town fills the bill for the emo
tionally dispossessed. says DR..
Kimmich.
From the Federal prison on
Alcatraz. an ugly rock between
the Golden Gate and oakland
bay bridges in San Francisco
Bay, prisoners can see the bright
lights, traffic and skyline Of the
city. 1t seems an unbearable pun
ishment-to be so close to so
much that is beautiful and yet
so distant-and perhaps many
San Franciscans get the same
feeling.
An old man living alone in a
hotel off Union Square, COM
mented: Nothing has been the
same here since the fire (the
term longtime San Franciscans
apply to the 1906 earthquake and
fire."
Now the progress craze is in
fecting the central California val
ley. fertile trough between the
Sierra Nevada and the lower
coastal range, about 450 miles
long and so miles wide, about
the size of Denmark.
In the central valley-its cities
include the State capital, Sacra-
mento; Stockton, Bakersfield,
Modesto. Merced and Fresno
you can grow anything from avo-
cados to Zucchinis.
Its hard-working people in
clude Armenians. Orientals, Por-
tuguese, Basques, Italians.
Greeks, Russians, Mexicans, Ne
groes and a lot of garden-variety
Anglo-Saxon protestantS, all liv-
ing in apparent harmony, un-
crowded and unfettered.
Attracting Industry
But now they're looking envi-
ously at Los Angeles and San
Francisco, wondering about at
tracing industry and conven-
tions.
I'VE gotta attract new indus
try" said Art RuStigan, co-owner
OF the Iran Restaurant in Fresno.
For an hour, he lambasted city
Evening star., 1962-05-27

But for the most part-and this
diStresses sin-seekers tired of the
Sunset Strip and outlying coffee
houses-L. A. really is a dull town,
particularly at night.
Angelenos drive 3, 40 or even
so miles to work on bumper-to-
bumper freeways. When the av-
erage Angeleno gets home, too tired
to drive elsewhere for an eve
ning's entertainment, he's more
than happy to settle for a cold
dinner or warm beer.
Serious Crime Rote
L. A. has 1927 Of the Nations
population-and 1/l0 of Ameri-
cas- serious crime. It has a fine
old tradition of homicide-aver-
aging one a day in 1850, when
it had only $4,000 population.
L. A. is first in rape, non
negligent manSlaughter and bur-
glary. It's second only to New
York in narcotics crime, second
in stolen cars and third in homi-
Evening star., 1962-05-27

hall, then his eyes grew misty.
You know" he interjected,
"the old days were better. Now
you take Saroyan, an Armenian
boy from around here. He turned
down the Pulitzer Prize. Man,
that took CUTS, huh?"
My trip was over a week after
I spoke to Rustigan. I took the
train, instead of a plane, because
I wanted another glimpse Of my
State, from San Francisco to Los
Angeles.
The Southern Pacific Daylight
hurtled past the lettuce lands Of
Salinas on a quiet Sunday, and
you think of Steinbeck's early
novels.
You see the orchards of South
Santa Clara County, side-by-side
with neonlit motelS and bill
boards, wistfully waiting to be
subdivided and gone forever
The westering sun falls over
the Pacific. The train speeds
southwark. Golden light suffuses
the darking horizon where sea
and sky meet. Evening mists
shroud the lonely, lost and lovely
California seacoast, known only
to those who don't travel on
highways or by plane.
The Old California
You can gaze from your win
dow at the California that exist
ed before the Spanish, English
and Portuguese explorers Of the
10th century. before the Cars
soldiers and fur-traders settled in
the north.
You can see California without
billboards, neon signs, taco stands
and housing tracts. You can see
remote coastal ranges, far from
highways and motels, a land I'M
Sullied, so far. by mankind.
You can't quite explain why we
cling to the Golden State as we
do.
You'd have to drive south from
Oregon and see the sun anoint,
the snowy crown of Mount Shasta
with fiery gold.
You'd have to fly over Los An
geles at night. when the wind
blows away the smog, and you
can see the city's broad plain
sweeping northward from Palo
Verdes to Chatsworth and west
ward from the foothills to the
Pacific. And the broad boule-
wards are blazing with a million
lights of every color.
You'd have to loll on a broad
California beach, or eat a hearty
fish dinner in a dim cafe, close
by the tourist spots on San Fran
cisco's fisherman's wharf, where
the commercial fishermen eat.
You'd have to grow, as I do In
my backyard and along the sides
of my house, plums. peaches.
oranges, lemons. Strawberries and
lines -. or visit San Diego's
Balboa Park Zoo on a quiet sum-
mer weekday and watch the sun
go down over Mission Bay.
AS my train heads homeward,
oaks and expresses bend and
creak on the rainswept coast,
We're hurting south toward
Santa Barbara. and shafts Of
yellow light flow from farm
houses nestled against mountains
that are emerald by day, purple
by night.
And you hope 1t will survive
the roaring floods of humanity
and man-made problems.
Evening star., 1962-05-27

terested in supplementing fixed
income, obviously present a prime
target for unscrupulous brokers
and their statesmen. While this
potential appears not to have
been fully appreciated until re-
Gently, the phenomenal sprouting
Of local brokerage houses in the
last few years attests to the fact
that the possibilities offered by
the market here have become we'll
known. The new firms, some of
which enjoyed rapid apparent
growth for time, in turn trained
new statesmen. Then the statesmen,
upon exposure to the prospects
offered, frequently opened up
firms Of their own.
The problems of securities
regulation in the District of Co.
lumbia may be illustrated in
numerous ways. The growth Of
the broker-dealer community in
itself is exceptional. At the end
of 1858, there were II District
firms who were members of the
NASD. At the end of 1861, this
number had increased over At per
cent to 104. In this connection,
it should be borne in mind that
in the interim a large number of
firms had failed-23 in 1851 alone.
BY contrast, the net gain in NASD
membership for the Nation as a
whole was only % per cent-and
the failures were correspondingly
lower.
History Of New Firms
The genesis-and subsequent
history-of many new firms re-
fleets what has caused our anxiety
and resulted in our actions. A
staff study of the last five years
shows that many local brokerage
firms have been formed by per-
sons formerly associated with
houses that the commission had
closed. Approximately one-third
Of the 81 that went out Of busi-
ness in the last five years had
an officer, director, or owner who
had previously worked for q firm
against which the commission had
brought proceedings. Half of this
group had two such persons. AS
a dramatic instance of how sub
standard firms have grown,
hydra-like, from the pieces Of re-
voked firms, let me give the fol-
lowing example: A large District
broker dealer recently was put out
Of business by the commissions
Washington regional office. In
vestigation Of possible fraud in
the operations Of this firm had
barely begun when a number of
statesmen and others connected
with it opened new offices Of their
own. Indeed, even before the firm
closed, its salesmen were setting
up firms. Altogether, at least 16
new houses were started by
alumni of the original alma mater.
OF this group, nine have either
gone bankrupt, been forced to sell
out, become dormant, or been put
out of business. Proceedings have
been brought against several of
this group Of nine, and inveStiga-
Evening star., 1962-05-27

hooks. quacks, neurotic actors,
phonies, arsonists, moronic motor
lists and little old ladies in tennis
shoes.
AneeIenos Tolerant
Most AngelenoS, tolerant be-
cause they are newcomers and lack
roots in the area, enjoy reading
Los Angeles bad publicity. Al
though they realize the oddballs,
as in any other major city, are
small fraction of the whole.
The trouble is, that in Los An
geles, the oddballs get a dispro-
portionate amount of attention.
What is L. A. like? It's a COM
bination Of Levittown. Pittsburgh,
Flatbush, Ottumwa, Iowa, Scars
dale, Black and Spanish Harlem
and, for tired tourists and fringe
members of the entertainment in
dustry, a touch of those two de-
lightful suburban communities in
Biblical Mesopotamia-Sodom and
Gomorrah.
Evening star., 1962-05-27

receive anything on their claims
filed in the bankruptcy proceed
ings.
There is evidence to demon
strate that these failing firms
were characterized by manage
ment which had little or no prior
experience. Such experience as
existed was too frequently with
a firm that had been involved
IN commission proceedings. Nearly
half of the firms which COM
menced business in the past five
years and failed had no executive
with any previous experience ex-
cept in a firm involved in revo-
cation proceedings or injunctive
action. The consequences at
tendant upon minimal standards
Of qualification for the securities
business-so graphic here-are the
subject Of major concern in the
special study now being conducted
by the commission.
Proceedings Here
The unhealthy state of the
securities business here in the
District is also illustrated by the
types Of securities broker dealers
have been selling. In many cases,
for example, the insiders and un-
derwriters have taken for them
selves what might appear to be
an unconscionable amount of the
proceeds of a public offering of
securities and have left little for
the benefit of the company and
its public shareholders. Thus, in
one case, a company which had
an operating deficit Of over $12, 900
was underwritten by q local
broker. The total issue was for
10000 shares at 50 per share.
The underwriting group received
Evening star., 1962-05-27

area known as Bunker Hill, and
now they're tearing down crumb-
ling, yet charming, gabled Victor
ian mansions to make room for
concrete office buildings, cubicles
that look like huge rabbit hutches:
Once you could see the lovely
island Of Catalina, % miles west
Of Los Angeles. and mountains on
three sides; now a Sinking, red
dish-gray smog, that blights the
soul as we'll as sears the eye and
threatens the lungs, blankets the
city;
Freewoys Abound
Once that superbly sinful city
of San Francisco abounded in
views of hills, bridges and bay
front, now they're building $50
million worth of impersonal free
ways;
Throughout CALIFORNIA; BOOM
ing cities, you hear about new in
dustry and new jobs, but consider:
Five-thousand new jobs means
Evening star., 1962-05-27

Within seven months, CalifOr-
MIA will become the Nations
most pOpulOus State. Relentless
ly, at the rate Of one person per
minute, the great stampede
pOurs on. What is It doing to
the Golden State? A Californian
takes sOundings in the mael-
strOm and presents both sides
of the dramatic picture.
Evening star., 1962-05-27
BY JOE LEWIS
Associated Press Staff Writer

Los ANGELES.-westw they
come, following the sun.
They see the glowing billboards
In Iowa. They listen in goggle-
eyed rapture. to expatriate east
erners who claim that living in
Evening star., 1962-05-27

In the first place, the District
Of Columbia has no local
securities regulation-no blue
Sky" law. There are only two
States without this type of legis-
lation. Its absence in the District
appears to have been a sub
stantial inducement in encourag-
ing both the formation Of sub
standard new brokerage firms and
the movement of undesirable per-
sons from other areas to here.
Convincing evidence is seen in the
fact that nearly all new broker
age firms have located within the
boundaries of the District, rather
than in Maryland or Virginia.
Moreover. principals and sales
men from outside the District
with so-called "boiler-room" back
grounds became participants in
local firms. The District had be-
come a haven for a developing
breed - the migratory broker
dealer who flockS to the place Of
minimum interference with his
operation.
High Income Foetor
Secondly, the Metropolitan Area
would generally be attractive to
broker dealers. Its comparatively
high-income military and govern
ment population, largely transient
and allegedly somewhat unsophis-
ticated in investing, and its large
number of retired people, in
Papago Indian news., 1962-09-01


an be in
the result
held
b o are Adams Marvin
and Larry
from the
at S !; sacrament t
in at prie and relief soc s sions a
Navajo times., 1962-09-05
EVERY YEAR STARTS
FROZEN
BY EUGENE CLAW

BY EUGENE CLAW
One day when the sun was so
faraway,
there stood al my door a huge, yet.
frozen life.
which no hands could touch 70 help,
Perhaps. one thing has set Il so,
and one time for several months
Il lasts,
Til the sun returns. and the Joy
Of life resumes,
The beginning Of the year. and the
midst Of winter.
YET, only could witness.
The world and year start frozen
Evening star., 1962-05-16

I Answer % MAXIMEZED
maid. MANNED. made, maxim, maze
maize. mead. media. mime. adze. admix.
aide. aimed. amid, amIde. axed, idea.
immix. imam, imide. ixia. exam. dame.
daze, demi, dime.
Evening star., 1962-05-16

of ous OF q more aos etsi nSSs WcS
acquire four letters By the addition
of S." such as "bats." cats" are not
used. 3. Only one form Of . word Is
The Phoenix Jewish news., 1962-05-25
Agency
Is RECOGNIZED

NEW YORK = The Economic
and Social Council of the United
Nations (ECOSOC) has granted
consultative status to the Interna-
tional Council of Jewish Social and
Welfare Services. Oscar Joseph of
London, chairman of the Central
British Fund for Jewish Rehabili-
tation, is president of the recently
formed organization.
Member agencies of the Inter-
national Council, in addition to the
Central British Fund, are the Joint
Distribution Committee, the Jew
ish Colonization Association, t h e
Standing Conference on European
Jewish Community Services, Unit
ed Has Service and the World
ORT Union.
The council was established in
London in June 1861 and formal
lied de facto relationship of long
standing among its member agen-
cies, Joseph said.
eve all have the common task
of helping Jews all over the world
to e d better and more produc-
tive lives" he declared. "In fur
thering this end, we feel that the
achievement of this status is a
most significant STEP"
The Phoenix Jewish news., 1962-05-25
Frank Sinutro
Lands In Israel
For 7 Benefits

TEL AVN (JTA)-Frank Sina-
ira, the American singer, came to
Israel for a series of seven per-
formances from which the proceeds
will go toward establishment of a
youth center in the Arab city of
Nazareth. His aim, he said, was to
help promote understanding be-
tween Jewish and Arab youth.
II have wanted to visit this
great State of Israel for 10 years.
Now, at last, my wish has material
ized," he said as he alighted from
his private plane. Sinatra is pay
ing the costs of his trip and the
expenses involved in connection
with his cast and aides.
Among his performances in Is
rael, one will be staged in the
amphitheatre at Elm Gev, on the
shore of Lake Tiberias, under the
Syrian gun-posts on the heights
above Elm Gev. Special security
measures will be taken by the Is
raeli defense forces there because,
only two months ago, there were
armed clashes in the area between
the SyrianS and ISraeliS.
The Phoenix Jewish news., 1962-05-25
Hebrew Study
Unit Is Set Up

NEW YORK = The first Insti-
tute of Hebrew Studies at an Amer
incan non-sectarian institution OF
higher learning has been estab-
lished at New York University, DR..
George D. Stoddard, chancellor
and executive vice president, an
nounced.
Stoddard said the new institute
will coordinate the Hebrew study
programs now offered to both
graduate and undergraduate stu
dents in various schools of the uni
versity. 1t also will undertake an
expanded research program in an
cient manuscripts, a PROFESSIONAL
exchange with Israeli universities,
and a new program for the train
ing of professors of Biblical and
modern Hebrew.
The Phoenix Jewish news., 1962-05-25
IInmigrotion-Low
Chances Asked

LAKEWOOD, M. (JTA) - An
appeal to President Kennedy to
throw the full weight of his pres
tige and moral leadership" in sup
port of the proposed congressional
legislation liberalizing the immi-
grafton laws was voiced here by
Rabbi Maurice N. Eisendrath,
president of the Union of Ameri-
can Hebrew Congregations at the
convention of the New Jersey Re
form Congregations.
kaDDi Eisendrath declared that
the present immigration laws were
biased on the reprehensible ma
tional origins quota system, which
declares that some people are bet
ter, on racial grounds, than 9TH
ers." The United States policy on
immigration, he said, constitutes
"the most racist law in American
history"
The Phoenix Jewish news., 1962-05-25
Circle Protests
Plight Of Jews
In Soviet Union

ATLANTIC CITY. (JTA) = The
Workmen's Circle, national Jewish
fraternal and cultural organiza-
ton, decided at its quadrennial
national convention here to stage a
massive Indignation week, be-
ginning June 1S, to help arouse
American public opinion against
"Khrushchev's final solution of the
Jewish problem"
Israel Breslow, president OF the
Workmen's Circle, announced that
65 900 members of the organiza-
ton, in 81 states and in several
Canadian provinces, will partici-
pate in indignation week." The
drive will include mass picketing
of United Nations headquarters
and the Soviet Embassy in New
York, special synagogue and
church services and sermons
throughout the country, and other
efforts to call attention to the situa-
ton of the Jews in Russia.
1--WE are extremely pessimiStlc,
he said, "about the fate of Russia's
5000, 600 Jews. The only real hope
is that they may be permitted to
leave Russia for it is perfectly
plain they will not be permitted
to survive as Jews"
The Phoenix Jewish news., 1962-05-25
Brondeis PIunS
Aonors For Chief
Of Peace Corps

WALTHAM, Mass. Brandeis
University will give honorary de-
grees to five national leaders in
the fields of education, journalism
and philanthropy on June 10 when
it stages its 18th commencement
exercises around the theme of edu-
cation for international understand
ing.
The university, which will also
invite several international figures
to be honored at the Sunday aft
ernoon ceremonies on the Wal
than, Mass, campus, announced
it will confer degrees on U. s..
Peace Corps Director R. Sargent
Shriver Jr.; Father Theodore M.
Hesburgh, president of the Uni
versity of Notre Dame; DR.. Nor
decai M. Kaplan, professor of the
philosophy of religion at the Jew
ish Theological Seminary of Amer
lea; Arthur Hays Sulzberger,
chairman of the board of the New
York Times; and Lawrence A.
Wien, New York attorney and
realtor.