SECURITIES AND EXCHANGE COMMISSION

     SECURITIES ACT OF 1933
     RELEASE NO.  7465 / September 30, 1997

     SECURITIES EXCHANGE ACT OF 1934
     RELEASE NO. 39170 / September 30, 1997

     ADMINISTRATIVE PROCEEDING
     FILE NO. 3-9471

          The Commission instituted administrative and cease-and-desist
     proceedings against Marion Bass Securities Corp. ("MBSC"), a registered
     broker-dealer, and administrative proceedings against Gerald P. Chandik
     ("Chandik"), MBSC's compliance officer.  The Commission's Order Instituting
     Public Proceedings and Notice of Hearing Pursuant to Section 8A of the
     Securities Act of 1933 and Sections 15(b), 19(h), and 21C of the Securities
     Exchange Act of 1934 ("Order") alleges that from March 1991 through March
     1994,
     MBSC violated the antifraud provisions of the federal securities laws and
     the rules of the Municipal Securities Rulemaking Board.  Further, the Order
     includes allegations that MBSC earned illegal profits totaling $447,510, by
     charging customers undisclosed, excessive markups ranging from 4.17% and
     16.07% in connection with 121 municipal securities transactions and by
     charging customers excessive markups and markdowns of between 3.26% and
     4.44% in connection with 66 government securities transactions.  In
     addition, the Commission alleges that from May 1991 through March 1994,
     Chandik failed reasonably to supervise MBSC's traders
     who were subject to his supervision with a view to preventing these
     violations.

          During the relevant time, MBSC, which is headquartered in Charlotte,
     North Carolina, was a member of the National Association of Securities
     Dealers, Inc. and engaged in a general securities business.  As compliance
     officer for MBSC, Chandik was responsible for drafting the firm's markup
     and markdown policy and monitoring the firm's trading activity to ensure
     compliance with this policy, as well as all applicable government rules and
     regulations.  In addition, he was responsible for supervising the traders
     who charged excessive markups and markdowns on behalf of MBSC.  

          A hearing will be scheduled to determine whether the allegations are
     true, and if so, what remedial action is appropriate and in the public
     interest.