Competitive bidding for new security issues, which ICC 13 years ago made mandatory for equipment trusts and which is routine in municipal financing, generally yields issuers higher prices and prevents long-term banker control over companies. But underwriters claim it is rather like asking doctors to bid for a job—it makes for lower bills but lessens the chance of expert work.
Four months ago competitive bidding found a vociferous champion in the person of redheaded Financier Robert Young, who has waged a fight for control of the Chesapeake & Ohio Ry. (TIME, April 25). C....
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