Score for Cy

After nine months of investigation, the Securities & Exchange Commission shelved its attempt to revoke the securities trading license of Cyrus Eaton's Otis & Co. SEC had little choice. It had hoped to prove that Otis & Co. had fraudulently wriggled out of a deal to underwrite a $10 million issue of Kaiser-Frazer stock. But the only way it could do so.was by proving that Otis & Co. had put Lawyer James Masterson up to filing the suit against K-F which had enabled Otis to call off the deal. Last month, a U.S. district court ruled that Eaton's lawyers did not have to testify in the matter. SEC decided to go ahead with a revocation hearing anyway. But last week, the U.S. Court of Appeals in Washington granted Otis & Co. an injunction to prevent SEC from even bringing up the charge of fraud at the hearing until the appeals court rules on the case. So SEC put off the hearing, probably for months.

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