E. F. Hutton & Co., a large New York Stock Exchange firm, has hired four officers and sales people away from Reynolds Securities here as part of a major regional expansion.
David R. Forward, vice president at Hutton and head of the company's office at 1227 Connecticut Ave. NW., said yesterday that his company's move was not a "raid" but a "coincidence," associated with the opening of a second District branch in the new International Square complex at 1850 K St. NW, a new office in Baltimore, and additional offices in Maryland and Northern Virginia planned later in 1977.
To head the new International Square branch, Hutton hired Perry H. Bacon, a Reynolds vice president in that firm's regional office here. From the Reynolds branch in Alexandria, Hutton hired assistant vice president John C. Jennison and account executives George Dunn and Thomas F. Duffy.
The four ex-Reynolds men will form the nucleus for a new concept in stock-brokerage offices in this part of the country. In a break from traditional stockbrokers' offices, with a large center room and stock price board, Hutton will give each of a dozen brokers individual offices and "more plush" furnishings.
Similar offices have been opened by Hutton in Florida and by Reynolds in New York. Melvin Wright, regional vice president for Reynolds, said last night that the concept is "an interesting one, one we think that might be the way to do it in the future . . . The idea started here when we began discussing it last year."
But Wright said he does not regard the action by Hutton to be a raid and Bacon said the former Reynolds employees went to Hutton on their own.
"Reynolds is extremely good at cost-cutting and good management, but that leads to a ceiling on how high registered representatives [sales persons] can go," in terms of sales volume, Bacon said yesterday.
Many sales workers at larger retail firms, he continued, have to share secretaries and stock quotation terminals. These and other factors, he said, reduce the ability of "superstar" sales people to sell all they can.
The new setup, with private offices and full facilities under a sales-oriented management, "makes sense for clients," Bacon added.
"In an office of 12 superstars, they will feed off themselves . . . We will create a healthy working environment. . . . I want to be the biggest producer I can be," said Bacon, who turned in his resignation at Reynolds on Tuesday.
Forward said Hutton is launching a major expansion here and in Baltimore, on Feb. 14, because the stock market currently is healthy and because the economy is advancing.
In addition, "Washington is on the verge of becoming the financial center of the world . . . not in the next 20 years but within 50 yeras. . . . It's just beginning to bloom and blossom, with corporations and associations moving here," Forward said.
He described individual Washington investors, for whom the new Hutton office is being oriented, as "a little less speculative than the average investor . . . they tend to be more sophisticated."
Forward came to Hutton in 1969 to open the Washington office after working for Merrill Lynch, Pierce, Fenner & Smith in Baltimore. He grew up in Silver Spring. Bacon, a native of Boston, has worked six years for Reynolds.