OF 1933 AND TO THE SECURITIES H. R. 4344, H. R. 5065, and H. R. 5832 BILLS RELATING TO PROPOSED AMENDMENTS Printed for the use of the Committee on Interstate and Foreign Commerce Starkweather, John K., Investment Bankers Association, New York. Stewart, R. McLean, Investment Bankers Association, New York... 781, 805, 833, 842, 865, 887, 917 McLaren, Norman Loyall, American Institute of Accountants, San Jones, Frayser, National Association of Manufacturers, New York.... Page, Robert G., Investment Bankers Association, New York__ Latimer, Hon. Murray W., Chairman, Railroad Retirement Board-- Fletcher, R. V., Association of American Railroads, Washington, D. C. Cass, C. D., American Transit Association, Washington, D. C.---- Goldstein, Meyer M., National Association of Life Underwriters, New Durig, Stanley W., Comptrollers' Institute of America, New York Sturtevant, Richard D., Jewel Tea Co., Barrington, Ill. _. Amberg, Harold V., American Bankers Association, Chicago, Ill Cobb, A. S., American Bankers Association, New York. 991 Putney, William B., 3d, Commerce and Industry Association of New Joint statement by representatives of Investment Bankers Associa- Hon. George A. Paddock, copy of speech delivered by- Memorandum by Harold V. Amberg-. Resolution adopted by the Congress of American Industry, December Reports, documents, statistical data: Special committee of the American Bar Association on securities 704 Notice of and order for hearing by the Securities and Exchange Com- 757 Notice of and order for hearing by the Securities and Exchange Com- 769 Proposed amendment as sec. 3 (a) (1). 908 Employee welfare plans, proposed amendment relative to---- 940 PROPOSED AMENDMENTS TO SECURITIES ACT OF 1933 AND THE SECURITIES EXCHANGE ACT OF 1934 CONTINUATION OF TUESDAY, NOVEMBER 25, 1941 BEGINNING ITEM NO. 4 ON AGENDA FOR AMENDMENTS TO SECURITIES ACT OF 1933 STATEMENT OF JOHN K. STARKWEATHER, NEW YORK, N. Y. PROPOSALS TO AMEND DEFINITION OF "UNDERWRITER" The CHAIRMAN. We have a witness on the next topic. Mr. STARKWEATHER. I believe I am the first witness on that subject, Mr. Chairman. The CHAIRMAN. We will be pleased to hear from you now, Mr. Starkweather. Mr. STARKWEATHER. Mr. Chairman and gentlemen of the committee: My name is John K. Starkweather. I am a partner of Starkweather & Co., 111 Broadway, New York City. I am also vice president of the Investment Bankers Association and chairman of its Federal legislative committee. I am appearing before you today on behalf of that association. Before starting the statement on the next subject, I should like to make one remark in connection with the table presented by Mr. Purcell, if I may, Mr. Chairman. That is, there is one thing that astonishes me about this table more than anything else, and that is the fact that in the 3-year period-and I assume that this includes all of the common-stock issues which were floated during that period, because it obviously would not be proper to select particular casesbut in that 3-year period only 178 companies, or 178 issues, have been made an average of but 60 a year-of issues up to $1,000,000. It is amazing to me, and it indicates to me two things, which are, first, no national economy can be healthy when there are but 60 small companies a year in a country of 120,000,000 or 130,000,000 people who want to raise any money, and it indicates another thing to me, and that is that there must be something in what all of the witnesses who have been before you have said; there must be something in the securities procedure in addition to the economic conditions which produce such a very small amount of financing of this type. [Since this statement was made, I have been informed by the Securities and Exchange Commission that its compiliation of 178 cases was not complete and that the actual total for the 3 years was 335 issues. In my opinion this does not alter the situation much as it still means only that on the average only two small companies per State of the Union per year have entered the public market for funds by means of the registration method.] You will note from the agenda that the next subject is divided into three parts. The first two are sections 2 (11) (b) (4) and 2 (11) (b) (5). |