| Show THE DAILY NEW V YORK Financial Whirligig Written for The Telegram by JAMES McMULLIN NEW YORK YORK YORK Insiders Iders learn that the securities and exchange commission com com- mission has a plan phin to make life easier for corporations with financing fi ti- to do da Nobody worries much any snore mote about the the- liabilities imposed b by the securities nc net act but the trouble and cost of rc roistering registering nn an issue is still a sore lOTe spot The anvil anvil an an- vil vii chorus has grown rown much louder in recent months since ince more and more companies with refunding problems have discovered what they're up against Investment bankers and business leaders both insist that th the expense of registration is prohibitive for an any issue of oC less than ten million dollars dollars dollars dol dol- lars and a serious erious handicap to larger larg larg- er The Standard Oil companies companies com corn panics of New Jersey and New v NewYork NewYork York have given point to the argument argument ment meat by handling their financing privately through small groups of large investors rs e e eThe The solution the commis commission Ion has hasin hasin hasin in mind is simplicity itself i if congress congress con can gress can be persuaded But nothing noth noth- ing big will be announced until its rules for permanent corporation listings on ree recognized exchanges are arc put into effect These rul rules while they will demand demand demand de de- de- de mand considerably more o of applicants applicants cants than the temporary regulations regulations regula regula- now in force will force will be framed in such terms that corporations whose financial l methods are on the level can have no reasonable reasonable- excuse ex cx- cuse for talking The old bugaboo that any company which enrolls is signing away its management rights to the commission will be shattered But a high standard of ar accounting practice and submission of financial finan finan- cial reports at regular intervals certified certified titled by bv outside auditors will emphatically emphatically em em- ly be enforced c. c e Once the majority of listed companies com corn panics accept this proviso the commission com corn mission will vill spring its ace acc It will propose that an any established corporation corporation cor cor- which has fulfilled its listing listing list list- ing lag requirements shall be exempted from detailed registration of oC any new issue it wishes to float except for the facts about the issue itself The point will be stressed to congress con con- gress that theres there's no sense in requiring requiring requiring re re- quiring companies which have proved their go good goad d faith to submit n R costly mass of historical data that no one will vill ever read Sponsors of the plan expect it to open the floodgates for a torrent of financing that has been stalled They also figure its it's swell bait U to lure reluctant corporations into accepting accepting ac tiC- ac- ac permanent listin listing lules No form of first aid that Washington could render would please investment investment investment invest invest- ment bankers more S 00 o 00 o Live Lively bubbles of dise discontent are seething toward the surface of the new harmony Lots of oC business buness men are less convinced the millennium is here than their spokesmen make out The Thc main grievance is what cO conservative employers call the governments government's weak kneed attitude toward labor They cite the New v Jersey dyers' dyers strike as a sample The national la labor labor la- la bor board sent envoys to U try to settie settle settle set set- tle tie the squabble The They V found the dyers dyer ready to offer 1 liberal beral concessions concessions conces conces- on hours and wages in order to get going again before their competitors competitors com corn in other sections grabbed off orf all the business But when the labor board agents transmitted the employers employers' offer U to a mass meeting of oC workers they were howled down whereupon they washed their hands bands of oC the whole matter and returned returned re rc- re- re turned to Washington This left the dyers hi high h and dry and and were the they sorel They blame the labor board for allowing the workers' workers meeting to be packed with outside agitators who had nothing nothing noth noth- ing lag personally at stake They also insist they could have ironed out outI I their disagreement with their cm em and md gotten otten back to normal operations much sooner if it the labor labor la la- bor hot board hadn't horned In InA InA inA A New York critic remarks that business would sincerely like to regain regain re re- re- re gain cain Its ilc confidence but confidence but how can it when truculent labor elements are permitted to ball things up at will e S 4 The utility investigating committee commit commit- tee of oC the New York state legislature legisla legisla- ture which ture-which which was supposed to ferret fer ret out the Intimate relations of power companies And law makers has has gott gotten n onto a less embarrassing embarrassing embarras embarras- sing sins side track as predicted here when it was wac forced The committee commit commit- tee has taken a tip from Washington's Washington's Washington's Washing Washing- tons ton's book and developed a passionate passionate passionate pas pas- interest in saving the consumer consumer con con- sumer money It Its It current activities arc are directed toward persuading New York state utilities to lower rates voluntarily The bJ big New York companies companies- Niagara Hudson Power Consolidated ed Gas and Associated Gas Electric Elec Elec- do do not belong to band of die diehards The informed understand un sm- they have listened to the committees committee's proposals in a sympathetic sympathetic spirit and may actually do something about rates before the legislature meets in February In that case the committee and its us counsel John counsel John E. E Mack could Mack could retire from their labors crowned with glory Of course it wont won't have unearthed any evidence on the ticklish question of utility political influence raised by Kingsland Macy Maey but but who's going to care Copyright McClure Newspaper Syndicate |
