August 21, 1970, Page 50Buy Reprints
The headquarters office of Hayden, Stone, Inc., a throw back to another era in Man hattan's financial district, will be abandoned as a result of the brokerage concern's consolida tion with Cogan, Berlind, Weill & Levitt.
The dark mahogany wood work, white marble, tile floors and frosted glass with giltwork on the ninth floor at 25 Broad Street date back to 1906, when Charles Hayden moved his firm from Boston to New York.
“We don't plan to renew the lease,” Roger Berlind, chief executive of Cogan, Berlind, said yesterday. CBWL‐Hayden, Stone, Inc., the concern that will result from the merger, will have its headquarters in Cogan, Berlind's current executive of fices uptown in the new General Motors Building.
The shift into a modern sky scraper on Fifth Avenue is sym bolic of the changes under way on Wall Street. Hayden, Stone's explosive growth and subse quent retrenchment provide a case history of the difficulties besetting large brokerage houses.
In 1959 it had nine branch offices, but within the follow ing decade it grew into one of the largest houses in the secu rities business, with 82 offices.
Under the current plan, 28 of its remaining 46 offices will go to CBWL‐Hayden, Stone and the other 18 will go to Walston & Co.
Ironically, Hayden, Stone had planned to move uptown on its own, to new quarters at 345 Park Avenue, before it en countered operating difficulties and subsequent financial prob lems two years ago.
Now the move apparently will be made for different rea sons and the old offices on Broad Street will be left to a shell corporation that will li quidate the assets and obliga tions not being taken over by CBWL or Walston.
“Hayden, Stone has really had a very young and vital organization of people that were completely opposite to the image conveyed by these quarters,” Donald R. Stroben, chairman of the concern, said yesterday.
“I feel that the combination of our talents in the retail and investment banking aspects of the business with CBWL's ex pertise in institutional and as set‐management services will make for a dynamic organiza; tion,” he added.
New Executive Positions
It was formally announced that he and George A. Mur ray, president of Hayden, Stone, would become executive vice presidents of the merged house. Mr. Stroben will head the cor porate finance operation and Mr. Murray will be in charge of national marketing.
Mr. Berlind, now chief execu tive of Cogan, Berlind, will re main chief executive of the new entity, while Sanford I. Weill will remain chairman, Arthur Levitt Jr. will remain president and Marshall S. Cogan will remain vice‐chairman.
Mr. Berlind said in an in terview that a stock‐option program was planned for Hay len, Stone's key employes. He also disclosed that public own ership of the new concern was contemplated, although he said this probably would not be possible for some time.
In another development in volving a brokerage‐house merg er, Edwards & Hanley said it had acquired the Boston office of the First Devonshire Cor poration, whose membership on the New York Stock Ex change was suspended Tuesday because of net capital viola tions.
The acquisition of the 15 ‘man office came a day after the Edwards concern had dis closed it was acquiring First Devonshire's bond department here, making it one of 11 Big Board members doing a com mission bond business on the exchange.
Edwards & Hanley's 13 of fices are all in the Metropoli tan area. Acquisition of the Boston office is the concern's first venture outside this area.
Meanwhile, the Commodity Exchange of New York an nounced that it had revoked First Devonshire's privileges on the exchange, effective at the close of business today. It said the concern's transactions would be limited to the liquida tion of open futures contracts. The New York Cocoa Clear ing Association also suspended First Devonshire from clearing privileges and other exchanges are understood to be investi gating its financial condition.
An American Stock Ex change suspension of the con cern occurred the same day as the Big Board suspension.
‘Surprise’ Is Cited
Yesterday evening First Dev onshire issued a statement, noting that the Big Board's action Tuesday had come “as complete surprise.” A spokes man said, “We believed at that time that we had complied with all requirements of the exchange.”
He noted that the concern was “doing everything possible to accomplish the orderly trans fer of customer accounts and to find places in the industry for our many loyal employes.” The spokesman said a further statement would be made after the effect of the suspension could be assessed.