Time for a Switch

In his 44 years as American Stock Exchange president, Ralph Southey Saul was the most effective and innovative leader of any major exchange. He pioneered in helping member firms over problems caused by high volume, and he oversaw the automation of exchange-floor functions. When President Nixon recently went searching for a new chairman of the Securities and Exchange Commission, the position was offered to Saul. He turned it down. Last week Saul startled just about everyone by taking another job. He will switch from the Amex presidency to the vice chairmanship of the First Boston Corp.

Why did Saul shift? There is considerable talk that he is wisely moving out just when the exchanges are beginning to face enormous problems, notably competition from automated stock trading and the difficulties that will be caused by the introduction, on April 5, of negotiated rates on big trades. In his new job, Saul, 48, seems to be in line to move up quickly to one of the two top posts at First Boston. Its chairman, Emil Pattberg, is 61 and its vice chairman of the board, Andrew N. Overby Jr., is 62. They are both close to the mandatory retirement age of 65.

Yet Saul was interested in more than his bright future at First Boston. As he confided to friends, the new job will give him a chance to build more financial security and add a new facet to his many-sided experience in the securities business. He has already held high positions on the SEC staff and with Investors Diversified Services, the nation's largest mutual-fund group; at First Boston, he will help run the nation's biggest underwriter. Once he has accumulated some wealth and more experience, Saul would be willing to re-enter public service, perhaps with the SEC. Why, then, did he reject the recent SEC offer? Friends figure that the Administration has little desire to turn the SEC into a tough, decisive agency--and Ralph Saul would not be willing to head anything less than that.

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