No Pools for Specialists

Every stock on the New York Exchange has at least one specialist, a man who jots in a book and executes buying and selling orders other than those which are to be executed "at the market." He often can tell at a glance whether a stock is likely to be supported if it sells off, whether it is likely to encounter big selling should it rise. This information is obviously of value to pools.

In the Senate investigation last spring much adverse comment was caused when it was revealed that red-haired Michael ("Mike") Meehan, specialist in Radio, was also in the Radio pool. Last week the Exchange lessened the chances of a specialist profiting through his knowledge by ruling that no specialist may participate in a pool in his special stock, nor may the firm to which he belongs. By use of the phrase "directly or indirectly" the Exchange can also prevent evasion of the rule by specialists who might participate in pools through their wife, cousin, stenographer or a dummy corporation. Some of the selling which came into the market last week was attributed to specialists and their firms withdrawing from pools.

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