singled out for the reason that he
was a member of the Stock Exchange whose firm was among the most
prominent dealers in these securities, and the prompt and energetic
way in which he undertook the task proposed to him soon convinced the
Committee that they had not erred in resorting to him. He set about
organizing a Committee at once and on September 24th he appeared
before the Committee of Five accompanied by Messrs. A. C. Gwynne, F.
H. Hatch, A. H. Lockett, and E. K. McCormick. These gentlemen
announced that they were willing to act, with Mr. Smithers as their
Chairman, and a plan for the control of the market in unlisted stocks
was agreed upon.

In order to clothe this Committee (which included two Stock Exchange
members, two representatives of prominent outside dealers, and the
President of the Curb Association) with authority, the Committee of
Five directed members of the Exchange to submit proposed dealings in
unlisted stocks to them and abide by their rulings. The Stock Exchange
Committee could, of course, only control its own members, but it being
a fact that a very large part of the unlisted business emanated from
Stock Exchange houses, it was probable that their action would
determine that of unattached dealers. This expectation was, in the
main, borne out, and business in unlisted stocks began to be carried
on actively under the jurisdiction above described.

It is necessary to record, however, in the interest of preserving a
correct picture of the happenings of this momentous time, that the
smooth and gratifying operation of the various other Committees, which
sprang into being to handle the numerous problems presented, was not
entirely repeated in this case.

The conditions surrounding unlisted stocks seemed on the surface to be
identical with those pertaining to unlisted bonds. In both cases a
business that was partly in the hands of Stock Exchange members and
partly in those of outside concerns was to be presided over by a mixed
Committee representing both interests. In the case of the Bond
Committee of Seven this supervision was accepted and cheerfully lived
up to by practically all concerned. A different situation soon
developed in unlisted stocks. Almost immediately certain individuals
in the business began to assert that the unlisted Committee was a self
appointed body which did not represent the people most concerned, and
that being themselves dealers in the properties the trades in which
were