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Some of Mr. Eaton's transactions with Continental Shares received sharp criticism. The United Light stock was priced at $66 when he sold it to Continental Shares, although the market price for an identical issue, lacking voting power, was around half of that. Last winter six law suits charging mismanagement were brought against Mr. Eaton and the directors of Continental Shares. This further weakened public confidence in its position. Facing these suits, facing a sharply falling market, Mr. Eaton last week dramatically withdrew from his official position as head of Continental Shares, invited the four most prominent Cleveland bankers (Wilbur M. Baldwin, Harris Creech, James Arthur House, C. E. Sullivan) to join the board of the beleaguered company.
Thus was control of the investment trust divorced from Mr. Eaton's personal aims and ambitions. Simultaneously in New York the third arm of this over-extended financial body was abruptly lopped off, and what had been the brokerage business of Otis & Co. on Saturday noon became the brokerage business of E. A. Pierce & Co.* at 10 o'clock on Monday morning. Otis & Co., however, remained a member of the Stock Exchange, an investment banking house in good standing.
Thus far last week had Cyrus Stephen Eaton retreated.
*Other brokerage businesses recently acquired by E. A. Pierce & Co.: Merrill. Lynch & Co.: C. Clothier Jones; Charles D. Robbins & Co.: E. E. MacCrone & Co.; E. M. Hamlin & Co.; William Schall & Co.