Show GAMING GAMING- RAMPANT IN BOND ISSUES IN WAll ST. ST Established Houses Find Selves s Outwitted by I Interlopers Interlopers In In- By Universal Service NEW EW YORK Nov 13 Gambling Gambling Is rampant In the bond market In the fi financial fl- fl district Speculation solely for forthe forthe forthe the rise rise was never so great In bonds In the tho hs history ory of or Wall street according to prominent Investment bankers who are deploring P present conditions as a menace na to the e Individual u Investor r. r going craz crazy I 1 never ever saw new offerings go over in such a way in which they are being put through at this time said the head o of one of or the lar largest est distributing houses The gambling in new bonds Is largely r for r tho the account of or brokers who realizing realizing realizing ing the rapidity with which each Issue is absorbed and the price advances to toa tot t f a premium put In large subscriptions for the new securities with the result the that these together with t the applications pP I from legitimate legitimate ii f tr investors e swell r the total t subscriptions to such a a. figure that th the thereal thereal real investors get only a a. small por portion lon of what they applied for and are forced to go to the speculative brok brokers rs to get the remainder only at a higher price BENEFITS GAMBLER ONLY Because of or the tho gambling subscriptions and tho the world orld gambling is used in the true sense of or its meaning it has become common now v for new offerings to be five or six times oversubscribed Owing to the tho necessity of or cutting down allotments everybody Interested except the gambling broker is sore The investment banker id is made because ho is unable to give his rhnea ObO r 1 l near e tha Amount o of bonds I requested reQuest d and the individual l investor vestor Is dissatisfied at tho the small amount of or bonds awarded him or her on the application Syndicate managers are also displeased inasmuch as tho bonds although sold are aro not placed they will stay put put- In other words they are not awarded to persons who purchase solely for income The minute one of or the new securities shows signs of or not advancing the speculative speculative brokers immediately sell the bonds in the open market thus thus' forcing the syndicate managers who support the market thus forcing the market to purchase purchase purchase pur pur- chase back the securities BEGAN WITH BEGAN WITH THE WAR Owing to the heavy speculative subscriptions subscriptions subscriptions sub sub- the work ork which has to be done by clerical forces of or syndicates in tabulatIng tabulating tabulating ing the securities has been greatly great great- ly inci eased inci-eased eased and the clerks are arc time and time again forced to work worl the greater part of the night cleaning up the tho work The participation of the speculative brokers has also swelled the number ot of members in syndicates offering new new issues It Is la an evil which has been recognized recognized recognized ever since the war began s said ld one prominent investment banker and there does not seem to be any correction handy at this time The Investment Bankers' Bankers association has considered the matter time and time again but as yet has not been able to decide upon a a. solution MACHINERY REMAINS During the tho war it was necessary to include in syndicates as many banking and brokerage houses as it was possible to obtain This was necessary because ot or the huge amount of or new offerings which had to bo be disposed of or With the elimination atlon of or the war financing and a turning to corporate issues it is not necessary sary to have o the big distributing tI machine w which 8 fm ac 1 ew has was created a at that a time There e does hot not seem to be any way however by which the machine can be reduced in size It does not seem teem fair that those who were permitted for the first time to participate par par- in the syndicates created during the war should be eliminated and It If they are the houses would be very much dissatisfied dis dis- dis satisfied INEVITABLE CRISIS There seems to be but one way out ot of the present situation and that will have to come in a natural way The time will come undoubtedly when some of the syndicates will be humble to dispose of or certain issues by reason of the fact that The market will have reached the saturation saturation tion point Losses will undoubtedly fall on the speculative syndicate participants and it is expected that two or threE such failures will dissuade the o brokerage houses from asking for large mounts amounts of bonds for which they have hav e i no prospective purchasers New Issues have gone so fast in re- re weeks that there is more competition tion to handle new financing than ever eve r before in the history of or the financial dis dis- tract It has become keener every doy 1 SPECIFIC INSTANCES There TI were two specific instances where e houses slipped in and secured new offerIngs offerings offer offer- et Ings from vendors notwithstanding that tha t other firms had been nursing the sellers seller s for weeks This was particularly true with wit h regard to the recent Denmark loan o of f It was also true of the Dla Dia mond Match company issue of The street is now watching with interest Interest interest inter Inter- est tho the competition that is going on o between the South Am American rican group o of American bankers and another group fo for r th the Or O fOtt loan to Brazil a Ono result I of the sharp competition for fox fo foxe the th the e new issues has been that man many houses which formerly specialized in on one type of or bond are arc now going jn in for al all cn Despite i e th the huge amount of oC new offer new offer ings the tho demand for bonds In general con con- good and Investment bankers sa say Y the outlook is good |