Show i The Tile Financial Whirligig By JAMES AMES McMULLIN NEW YORK S Sept pt 23 23 Herbert I Hoover i is becoming a re real l headache headache head head- ache to backstage Republican chiefs The presidents president's attitude has ha chan changed chanced ed subtly in recent weeks It has been apparent for some Om time that he feels entitled to another chance chance but but until lately New New York insiders believed he would wait for for lor the nomination to come to him Ins instead tend of f g going out out after it They figured their main problem was to convey the idea that he wasn't wanted as tactfully as pos pos- pos pos- sible They knew they couldn't push him out of the picture ent entirely entire entire- re- re ly ly but but they hoped he would acc accept pt the inevitable gracefully and confine confine confine con con- fine his activities to promoting someone someone else's Isea candidacy Now it has been made painfully clear to them that Mr Hoover has no intention whatever of being into the role of backseat driver These developments give G GOP 0 P string pullers the shivers They i arc are certain his nomination could lead only to disaster in 1936 yet 1936 yet they dare not fight him too openly and he ho is impervious to hints II Expert diplomacy seems to be bethe the only hope of inducing him to step I aside And th that t brings up the di- di dif question of finding an emissary emissary emis ernie sary to whom he will listen Few easterners are in his good graces Its It's doubtful whether ven Ogden Mills if Mills if he could be persuaded to tackle the job could job could put it over ver The investment house of Salomon Bros Hutzler has sprung a new system of floating securities securities' that has Wall Street in something of a dither Instead of underwriting I corporate issues in the usual way way way- I which involves involves' a syndicate of dealers deal deal- ers distribution and share I the risk if the offerings offering is at all aU large this this firm has marketed two big issues on a straight commission basis with no other dealers The securities have been sold direct to investing vesting institutions Swift Co raised this I t way at the thC incredibly small mall co cost o of at and Vacuum will only have to pay to raise rahe The secret of ot the low cost lies in the fact that the distributing house housea a assumes no responsibility for tor h how w much of ot an issue is 13 sold sold and and therefore therefore there there- fore charges s no spread to to cover dealer risks The issuing company takes the chance of a n poor demand that the underwriter normally cov coy ers ers But ut the pioneer experience of Salomon Bros Hutzler shows this risk is slight alight if the issue is priced right Investors come running a Without waiting to be solicited The investor saves money by this method too with the price spread eliminated A further point worth noting noUng is that market rigging is aut automatically obviated obvIated obviated ob ob- ob since it isn't worth any anyone's ones one's while to do doctor tor p prices Carter Glass' Glass remarks about his affectionate friendship for the president was a blow to promoters lof of the Jefferson Democrat third party idea It was vas true rue that the Virginian had shown no interest in their att attempt to r revive the Palmer- Palmer Buckner strategy of 1896 but they had still cherished hopes of converting converting converting con con- him to the need for defeat detent ing Roosevelt Now he has virtually served notice that he will have none of them and they fear tear his prestige with conservatives will induce many other wing right wing Democrats to tollow follow fol tol- fol- fol i low his implied example of ot party regularity New Yorkers observe that P. P D D. R. R c certainly owes owes Glass a vote of ot thanks The stock exchange forgives A. A A. A Berle Eerie Jr his complaint about manipulation of transit stocks since he said that he would not ask a securities exchange commission Inquiry Inquiry inquiry in In- and nd indicated h his s confidence that the exchange itself can handle handl I the matter satisfactorily The boys I I appreciate that gesture and will do dc I their damnedest est to dig out the dirt dirl for his his and and the publics public's publics public's benefit Copyright t 1935 by The he Telegram |