Salt Lake Telegram | 1919-11-11 | Page 12 | The Assessment Abuse Again

I The The Assessment Abuse Again I By Ira C. C Tichenor HE matter of abuses in connection with assessment sales of T THE stocks listed on the Salt Lake exchange and which became so flagrant a year or more ago that attention to the affair was called in this column to the board of governors of the exchange with the result that a pernicious practice on the part of ot certain brokers suddenly stopped again has lias come to notice as the result of ot the Incident related in connection with yesterdays yesterday's transactions on the board It is not charged that anything was radically wrong with the conduct of ot the sale of ot delinquent stock by the management of the East Crown Point company but the indications are that subsequent events in connection therewith would be sufficient to Justify an inquiry on the part of ot stock- stock In the com company pan or by members of the exchange who are opposed to lany tny action on the part of other members which might cast a reflection up upon n the membership membership- of the exchange as a a. whole or upon the Institution as asI asa a I business business organization shares of the stock of According to general report approximately the thi East Easl Crown Point were sold for tor a a. half cent assessment plus cost last Jast At Mondays Monday's session of the stock exchange as stated yesterday shares of the stock were sold at 2 to 2 cents against a a. price of ot 3 cents paid for the stock at t Saturdays Saturday's session the matter of assessment sales previously was considered it was was ata staled ted on authority of some members of the exchange that incidents had been known where agreements had been reached by brokers who attended sales not to bid against each other for the stock stock and that as aa a a. result of this his arrangement whether with the connivance of ot the managements it wa s' s not declared the brokers were enabled to acquire the stock for the ILs assessment plus a a. small cost charge and which they sold on on the the open board board bet w the previous market price but still at t a a. profit sometimes amounting to several everal hundred per cent While hile such an affair might be called good business on the part of ot the brokers engaged in the transaction most certainly it is very bad business on the on-the th thO part of the company which conducts an assessment sale saie under those conditions Not only that hat but it is wholly unfair to the holders of or stock who have paid their assessments as it reduces the market price for the stock It would seem to be the duty of of companies under the necessity of or assessing stockholders to have a representative present at assessment sales to compel b by competitive bidding the payment of ot approximate market prices for tor the stock tock thus not only benefiting the companies financially but protecting protecting pro pro- those stockholders who have paid their assessments