Match in Louisville

A financial wrestling match which may determine many a security dealer's future went on in Louisville last week. The contestants: the $84,000,000 Louisville Gas & Electric Co. v. the city's 14 registered security dealers.

The match began three weeks ago when SEC shocked Louisville dealers by permitting the utility to peddle its own common stock--an issue of 150,000 shares. Dealers got another setback when SEC overrode their objections to the offering price, called $23.50 a share "reasonable." Although they would have made the same commission, dealers thought $22 was enough.

Piping mad, the dealers pulled what looked like a sit-down strike, refused to cooperate in selling the issue. Aside from losing $112,500 in commissions, their very careers were at stake. If Louisville G. & E. successfully distributes the issue with its amateur salesmen, many another utility will copy the idea. And new utility issues --the result of SEC's holding-company dissolutions--have been the biggest piece of prospective business on the security dealers' horizon.

But this week Louisville brokers were not downhearted: twice flipped out of the ring, they might yet end up the winner. Reason: the sale was going badly. Although no official totals were available (growled Louisville G. & E. men: "It's nobody's business"), brokers figured only 12,000-15,000 shares had been sold.

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