UNITED STATES SECURITIES AND EXCHANGE COMMISSION

          SECURITIES ACT OF 1933
          Release No.  7603 / October 27, 1998

          ADMINISTRATIVE PROCEEDING
          File No.  3-9770

          Order Instituting Proceedings against Maynard Matt Smith

          The Commission announced the institution of a cease-and-desist proceeding
          against Maynard Matt Smith ("Smith") alleging that he was a cause
          of violations of the antitouting provision of the federal securities laws.

          The Order alleges that  from  June  1997 through June 1998, Smith
          received  approximately  $4,500 per month  from  the  author  and
          publisher of investment newsletters  (hereinafter  the  "author")
          for   researching   public  companies  and  writing  and  editing
          articles.  Smith was  not directly involved in the circulation or
          publication of the investment  newsletters.   Smith  reviewed and
          edited   one   of  the  author's  investment  newsletters,  dated
          September 8, 1997,  recommending  the stock of an issuer.  At the
          time Smith reviewed and edited this  newsletter,  Smith  and  the
          author  were  negotiating  with  that issuer and anticipated that
          they would each receive $2,500 per  month from that issuer.  This
          newsletter did not disclose that they anticipated compensation or
          the amount of compensation anticipated  from  that  issuer.  As a
          result of this conduct, staff allege that Smith caused violations
          of  Section 17(b) of the Securities Act of 1933.  A hearing  will
          be held  to determine whether the allegations are true and if so,
          whether to issue a cease-and-desist order.