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SURVEYS SHOW 'STREET-NAME' SHAREHOLDERS VALUE INTERIM REPORTS; WANT THEM ON SAME BASIS AS OTHER INVESTORS, SIA SAYS

 SURVEYS SHOW 'STREET-NAME' SHAREHOLDERS VALUE INTERIM REPORTS;
 WANT THEM ON SAME BASIS AS OTHER INVESTORS, SIA SAYS
 /ADVANCE/ NEW YORK, Aug. 25 /PRNewswire/ -- Recent surveys of investors confirm a large number of shareholders holding equities in "street name" at brokerage firms and banks place substantial value on quarterly corporate reports and want to continue receiving them on an equal basis with other shareholders, Edward I. O'Brien, president, Securities Industry Association, and Peter Quick, chairman of an SIA subcommittee, said Wednesday.
 In a random phone survey in June of 200 Merrill Lynch, Pierce, Fenner & Smith Inc. clients, 64 percent of the respondents said they wanted to continue receiving the interim reports for companies in which they own stock, and 46 percent said they disapprove of the trend of publicly held companies to discontinue quarterly reports.
 A mail survey in March, conducted by ADP Proxy Services of about 38,000 clients of J.C. Bradford & Co., Ernst & Co., Gruntal & Co. Inc., Quick and Reilly Inc., Charles Schwab & Co., Inc. and Waterhouse Securities Inc. showed about 86 percent of the respondents found quarterly reports valuable sources of information, O'Brien and Quick said.
 In recent months SIA officials and others have met with the Securities and Exchange Commission and self-regulatory organizations to discuss the issue.
 "We believe the issue needs to be resolved now, and are willing to do whatever we can to bring the issue to a successful conclusion for investors," they said.
 "Since a majority of individual shareholders keep their securities in 'street name' and a small, but growing number of bellwether companies are refusing to provide firms with interim reports, individuals 'registered' with companies are being given an unfair information advantage. Such behavior is reprehensible, and runs counter to the whole philosophy of the modern-day marketplace," they said.
 Many shareholders keep securities at brokerage firms to take advantage of various services, especially securities safety and transferability, O'Brien and Quick noted. In other cases, such as customers with Individual Retirement Accounts, individual direct registration is prohibited by regulation, they said.
 "Some companies refuse to let brokerage firms handle the mailing and require individuals to call or write to the company to get the report. That requires individuals who have told us they don't want their names released to companies to lose the right of privacy," O'Brien and Quick said.
 Moreover, they said, "It places an unnecessary burden on the investor to figure out when to write or call the company when the same action isn't required by a registered shareholder."
 Meanwhile, brokerage firms are required by New York Stock Exchange rules to mail company reports when requested by the company.
 DJIA Companies Withholding Reports Reimbursement
 As an example of the growing size of the problem, among the 30 stocks in the Dow Jones Industrial Average (DJIA), 12 companies refuse to either provide interim reports to brokerage firms, or refuse to reimburse brokerage firms for report distribution, O'Brien and Quick said.
 They are Allied Signal Inc., American Express, American Telephone & Telegraph Co., Walt Disney Co., E.I. du Pont de Nemours & Co., Eastman Kodak Co., General Electric Co., International Business Machines Corp., McDonald's Corp., Minnesota Mining and Manufacturing Co., Texaco Inc. and Westinghouse Electric Corp.
 Many other companies also have been adopting similar policies, O'Brien and Quick said.
 The interim report distribution subcommittee of SIA's operations committee has been focusing on the issue since August 1991. Quick, president, U.S. Clearing Corp., heads the subcommittee; Andrew Carrozzo, vice president, Merrill Lynch, Pierce, Fenner & Smith Inc., heads the Proxy Division of SIA.
 -0- 8/25/92
 /CONTACT: Art Samansky or Karen San Antonio of Securities Industry Association, 212-608-1500/ CO: Securities Industry Association ST: New York IN: FIN SU: ECO


PS-LR -- NY056 -- 3084 08/25/92 14:24 EDT
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Date:Aug 25, 1992
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