MARKETS: Fire Warning

One evening last week, genial, popeyed Jerome Frank made his maiden appearance as chairman of SEC, at the maiden dinner of Manhattan's Association of Customers' Brokers, at which bigwig brokers like Carle Conway and Paul Shields were much more in evidence than customers' men. Chairman Frank seized the occasion to issue, not an SEC blast against Wall Street, but a solemn warning and appeal for cooperation.

The subject of his warning was brokers' general practice of taking customers' cash deposits and mingling them with their own funds, with the result that if a broker fails, his customers are just some of...

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