Word: sec
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Dates: during 1940-1949
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...financial incentive to get business for it. Final question was whether United Corp., which J. P. Morgan put together in 1929, is subject to Morgan political control. Describing the demeanor of United's George Howard toward Morgan's George Whitney as one of "courteous fealty," SEC decided there was control. It added that Morgan, Stanley had, since its formation in 1935, obtained substantially all bond underwriting done by all the companies in the United system; and that it has headed no utility financing outside the United group...
Philadelphia's rich United Gas Improvement, having first threatened to sue SEC for ordering it to sell its Connecticut property, about-faced into the procession, announced it would sell...
...back broken." A louder crack accompanied the death of another institution: the freedom of the utilities to place their financing where they see fit. In February 1940 Morgan, Stanley sold $25,000,000 of Dayton Power Co. bonds. The bankers consented to having their $100,562 fee "impounded" while SEC decided whether they were an "affiliate" of Dayton Power, or if there had been an absence of arm's length bargaining (required by the Act) in preparing the deal. Fortnight ago SEC dropped a bombshell on the corner of Broad and Wall Streets by finding-unanimously-that Morgan, Stanley...
...world of make believe. . . . We desire to state that in no conceivable way can it be properly held that we have ever been affiliated with the Dayton Company or any other public utility company." This week Morgan, Stanley had not decided whether to take the matter to court. If SEC is right, and Morgan, Stanley owes its utility business to J. P. Morgan's holding company affiliations, the disruption of the relationship will oust Morgan, Stanley from its No. 1 position in the utility underwriting field...
...that question became academic this week. For Chairman Frank's curtain line, SEC decided (as Wall Street long feared it would) that all utility securities under the Act shall henceforth be subject to competitive bidding, whether the bankers are "affiliates" or not. This decision meant that the coming spate of security distributions that must accompany the breakup of the holding companies will be an investment bankers' free-for-all-and an open field for new regional utility combinations too. SEC defended itself against two frequent assertions: 1) that enforced securities auctions "interfere with free enterprise" (Massachusetts, cradle...