Morgan Stanley Competes

Like Little Lord Fauntleroy in a bullpen, Morgan Stanley & Co. last week got caught in the trend toward competitive bidding, announced it would form a group to bid forA. T. & T.’s forthcoming $94,000,000 bond issue. Since 1906 Morgan interests have underwritten some $2,000,000,000 of Bell System securities, but always on a private banking basis. This time it will have to compete with hoi polloi, including Halsey, Stuart, No. 1 plugger of competitive bidding.

A prime Morgan argument against the competitive-bidding system has always been that it would squeeze out the little dealer. Putting theory into practice, Morgan Stanley’s A.T. & T. group lists only 28 firms. But Halsey, Stuart, as if to nullify the Morgan argument, planned to include a thumping 150 or more distributors in its group.