Cy's Set

Like a smart tennis player, Cyrus Eaton had more than once caught the Securities & Exchange Commission flat-footed in its long battle to revoke the underwriting license of his investment house, Otis & Co. SEC charged that Eaton had instigated a suit against Kaiser-Frazer Corp. and then used the suit to get out of underwriting a stock issue for K-F when it seemed that Otis might lose millions on the deal. Eaton neatly handled that hot serve. He sued SEC in the U.S. District Court. It ruled that there was insufficient evidence against Otis. SEC took the case to the U.S. Court of Appeals.

Last week, to SEC's chagrin, the appeals court upheld the District Court ruling. SEC could still go to the Supreme Court, but with two love sets already, it looked as if it was Eaton's match.

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