For 13 years competitive bidding by underwriters has been mandatory under ICC regulations for new issues of railroad equipment trust securities. For many more years than that it has been routine in municipal financing. Meanwhile, a growing number of private corporations have cut ties with their traditional banking houses and put new issues on the block, or placed them privately, often getting better prices for their securities.
Conservative banking houses like Morgan Stanley & Co. (divorced underwriting half of J. P. Morgan & Co.) and Kuhn, Loeb & Co. have held themselves coolly aloof from competition for security issues....
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