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Newspaper articles:

"Cherished Myth_Dispelled," from the Washington Post- - .
"No-load Shares Have Built-in Benefit," from Washington Post----
"Sales Fee Loads Odds in Fund Handicap," from the Washington
Post__

Salt Lake Tribune, "Common Stock Fever: Another 1929?".
Syracuse Herald-Journal entitled "Uses Darts To Pick Out Stocks".
New York Stock Exchange:

Page

1178

1177

1179

1167

803

Funston, G. Keith:

Prepared statement of...

749

Statement of...

733

Letter and memorandum, submitted at the request of the committee,
giving comments on the various sections of S. 1659_
Letter from Edward D. Jones & Co.----.

743

1030

North Carolina, University of:

Letter from Prof. Ernest L. Folk III to Senator Sparkman.........
Submitted statement of Professor Folk__

1000

1001

Oppenheimer Fund, Inc., letter to Senator Bennett from Leon Levy, president.

1130

Opinion, Brown v. Bullock_

69

Oregon, State of, Department of Commerce, letter to Association of Mutual
Fund Plan Sponsors, Inc.----

537

Pacific Coast Stock Exchange, letter to Senator Sparkman..

1041

Pennsylvania, University of:

Letter from Professors Friend and Mellon to Senator Sparkman...
Prepared statement of Prof. Irwin Friend...
Prepared statement of Prof. Edward Herman..

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Pioneer Fund Inc., letter to Senator Bennett, from John F. Cogan Jr., president

1144

Princeton University, statement of Prof. Jesse Markham on behalf of the
Investment Company Institute____

336

Purchases of mutual fund shares in the State of California, additional information submitted for the record by the SEC..

55

Questions submitted by Senator Bennett and answers supplied by Mr.
Cohen...

Quinby & Co.:

Letter to Senator Kenneth B. Keating (with attachments).
Statement of H. Dean Quinby, chairman

90

851

845

Raymond James & Associates, statement of Robert James, president...--
Resnick, Sydney, letter to Senator Sparkman__.

782

1145

Robbins, Sidney, professor of finance, Columbia University, papers entitled:

"Has the SEC Forgotten Its Economics"

1131

"Implications of the Rate-Making Proposals of the SEC in the Mutual Fund Industry".

248

Rubin, Wachtel, Baum & Levin, letter to Senator Sparkman__
St. John's University, Collegeville, Minn., statement of Father Gervase J.
Soukup, OSB..

1044

269

Samuelson, Paul A., institute professor, MIT:

Prepared statement..

Memorandum on comparison of fund performance with random
selections and comprehensive indexes, additional data submitted
for the record___

Statement of..

369

366

347

Schaub, H. Peter Jr.:

Statement entitled "A Dealer looks at the SEC Report on Mutual
Funds".

1146

Letter to Senator Bennett__

1145

Schultheis, Laybourne & Dowds, letter to Senator Sparkman, from Norman
R. Dowds__

1094

Schwartz, Donald E., professor, Georgetown University Law Center, letter to Senator Sparkman__

1017

Securities and Exchange Commission:

Appendix memorandum on principal recommendations in the Commission's report on public policy implications of investment company growth which are embodied in the draft bill submitted by the commission _ _ _

Basic sales loads and dealer concessions of 30 mutual funds, 1950 versus 1966, table...

Para

172

87

Brown versus Bullock, opinion submitted for the record..
Cohen, Manuel F., Chairman:

69

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Questioning by the committee__

Common stocks most actively traded by odd-lotters, 1957-65, table.. Comparative sales charges contractual plan versus voluntary plan, chart...

44

177

157

Costs of acquisition and disposal mutual funds versus NYSE listed stocks, chart..

146

Income and expenses of advisers as a percentage of average net assets, chart..

Letter and outline of proposed amendments to the Investment Company Act of 1940 with respect to management contracts, submitted by Mr. Robert Augenblick, president and general counsel, Investment Company Institute..

Letter and suggestions for amendment to section 15 of the Investment Company Act of 1940, submitted by Mr. Robert Augenblick, president and general counsel, Investment Company Institute..

135

98

100

Securities and Exchange Commission-Continued

Letter outline, received from the Association of Mutual Fund Plan
Sponsors, Inc., of proposals made in response to various criticism
of contractual plans for the accumulation of mutual fund shares.
Measures of Advisory Fees Rates, additional data submitted for the
record...

Memorandum in response to testimony.

Mutual Fund Investment Results Compared to the Results Achieved
from Investments in the Common Stocks Favored by Small Inves-
tors, additional study submitted for the record_

Mutual Funds from the Investor's Viewpoint, by Stuart B. Mead..
Profit or loss as a percent of amount paid in contractual plan versus
voluntary plan in a balanced fund, chart___

Purchases of Mutual Fund Shares in the State of California, additional
information submitted for the record..

Page

101

63

1193

175

177

158

55

Questions submitted by Senator Bennett and the answers supplied by
Mr. Cohen -

Results of investing in common stock mutual funds compared to the
results of investing in the diversified closed-end investment com-
panies listed on the NYSE for the 10-year periods ending Decem-
ber 31, 1962-December 31, 1966. Appendix submitted in answer
to question 10 submitted by Senator Bennett..

Value of mutual fund shares issued and redeemed, 1957-66, chart.
Selected American Shares, Inc., letter to Senator Bennett, from Edward P.
Rubin....

90

108

150

1157

Shelby, Samuel, Fairbanks, Alaska, letter to Senator Gruening.
Smith, James M., letter to Senator Bennett_

1045

1159

South Carolina, State of, Department of State, letter to Association of
Mutual Plan Sponsors, Inc.___

538

Southern California, University of, letter from Associate Prof. John M.
Lishan to Senator Sparkman.......

1053

Steadman Security Corp., prepared statement of Charles W. Steadman, chairman of the board and president

876

Stevens, Glenn, Mayor, Munnsville, N. Y., letters to:

Senator Sparkman..

Senator McIntyre..

Templeton, John M., submitted statement..

Texas, State of, State Securities Board, letter to Association of Mutual
Fund Plan Sponsors, Inc. ---

1160

1160

1018

538

Time Inc.:

Article entitled "Funds Under Fire".

Harris, Carl A., letter to...

Unaffiliated Directors, list of, submitted by Senator Percy

United Funds, Inc., memorandum to Senator Sparkman.......

1114

1113

Twentieth Century Investors, Inc., letter to Senator Sparkman..

U.S. Court of Appeals, Second Circuit:

Letter from Henry J. Friendly, circuit judge, to Senator Sparkman.. 1017
Submitted statement of Judge Henry J. Friendly...

1053

204

1056

1014

Valicenti, Leighton, Reid & Pine, letters to Senator Sparkman.
Veltkamp, Thomas S., Manhattan, Mont., letter to Senator Mansfield..
Wallich, Henry C., professor, Yale University, statement submitted..
Washington Mutual Investor Fund, letter to Senator Bennett, from
Bernard J. Nees, executive vice president...

1055

1058

1059

1162

Washington, State of, Division of Professional Licensing, letter to Association of Mutual Fund Plan Sponsors, Inc..

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Letter from Brittenum Associates, Inc..

William Jennings & Co., prepared statement of Murray L. Simpson, executive vice president__

Yale University, statement submitted by Prof. Henry C. Wallich..

Young, Randall M., letter to Senator Sparkman.......

1069

1070

791, 794

1059

1163

MISCELLANEOUS CHARTS

Aggregate payments versus value or realization, 17,181 accounts.
Aggregate payments versus value or realization, 129,136 accounts, 1940-65-
Aggregate payments versus value or realization, 225,318 accounts,
1949-65-..

Assets of major institutions and financial intermediaries__

Advisory fee rates of 25 mutual funds on June 30, 1960, and May 31,
1967__

Assumed $10,000 investment in chemical fund for 15 years.-
Comparative sales charges contractual plan versus voluntary plan..
Comparison of various savings and investment methods_-
Comparison of various savings and investment methods, 10 years, 1957-
66..

Completed payment record, 32,782 accounts paid up January 1, 1958-
December 31, 1965.
Concentration ratios_

Costs of acquisition and disposal mutual funds versus NYSE listed stocks..
Diversified Investment Fund, Inc., illustration of assumed investments
of $10,000----

Dividend Shares, Inc., illustration of an assumed investment of $10,000,
with capital gains distributions accepted in additional shares...--
Growth of net assets, open end investment companies, 1940-66.
Illustration of an assumed investment of $10,000 in Keystone Income
Fund Series K-1.

Illustration of a $10,000 assumed investment 1955-67 in AXE Science
Corp----

Page

523

522

522

283

294

288

157

806

282

523

334

146

293

292

281

290

289

Income and expenses of advisers as a percentage of average net assets.
Investment banking and the securities industry..
Investment performance of 169 mutual funds..

135

630

282

Investment performance of 169 mutual funds (amended) – –
Mutual fund, MIP, and brokerage account participation costs...

287

333

Mutual fund, MIP, and brokerage account participation costs for median income mutual fund shareholders_

332

Profit or loss as a percent of amount paid in contractual plan versus voluntary plan in a balanced fund...

158

Registrations and terminations of mutual funds, 1950-66

333

Securities Brokers and Dealers, location of principal offices..
Trend in commissions as a percent of gross sales---

631

307

Trend in management advisory fees as a percent of assets.

836

Trend in total operating expenses including advisory fees, as a percent of assets..

300

Value of mutual fund shares issued and redeemed, 1957–66_.
Washington Mutual Investors Fund, illustration of an assumed invest-
ment of $10,000, with capital gain distribution accepted in additional
shares.

150

291

MISCELLANEOUS TABLES

Accounts started, 1961 to 1965 for 5 leading contractual plan sponsors and all investment company institute and mutual fund plan sponsor member companies.___

Accounts terminated with losses during first 5 years for 5 leading contractual plan sponsors and all member sponsors of the association of mutual fund sponsors for accounts started during the period 1961–65--Advisory fee rates and expense ratios of externally managed mutual funds with June 30, 1966 net assets of $100 million and over for their fiscal years ended in 1966...

490

491

15

Advisory fee rates of 25 mutual funds on June 30, 1960, and May 31, 1967__ Assets and operating earnings of the 25 largest stock life insurance companies, 1966__.

300

301

Assets and operating earnings of the 25 largest banks, 1966..

301

Average annual rate of growth, on a compound basis, for selected high quality common stocks..

181

Average per annum rate of growth, on a compound basis, for the best performing funds in the sixties...

Basic sales loads and dealer concessions of 30 mutual funds, 1950 versus
1966____

Changes in breakpoints for mutual funds, 1950-66-
Comparison of payment persistency-contractual plans versus voluntary
fidelity capital fund (120 accounts represented in year 1961) -
Comparison of payment persistency-contractual plans versus voluntary
plans 1964-66_.

Comparison of various savings and investment methods, 1957-66-.
Compensation of full-time registered representatives, by size of firm.
Compensation of registered representatives by dependence on mutual fund
income..

Customer-directed give-ups paid and received by sample firms.

Distribution of firms by degree of impact of all SEC recommendations in combination...

Page

180

87

336

532

531

1050

584

585

588

584

Dreyfus fund accounts_.

999

Effect of all SEC recommendations in combination on 1966 net income (after tax) by size..

583

Effect of all SEC mutual fund recommendations in combination on 1966
net income (after tax) of sample firms, by city classification__
Effect of all SEC mutual fund recommendations in combination on 1966
net income (after tax) of sample firms, by degree of concentration in
mutual fund business....

Effect of all SEC mutual fund recommendations in combination on 1966
net income (after tax) of sample firms, by exchange membership...
Effect of all SEC recommendations in combination on 1966 net income
after tax of sample firms, by size.......

583

581

582

581

Effect of elimination of customer-directed give-ups on 1966 net income (after tax) of sample firms, by size..

589

Effect of elimination of sales charge on reinvestment of dividends on 1966 net income (after tax) of sample firms, by degree of concentration in mutual fund business..

Effect of elimination of sales charge on reinvestment of dividends on 1966
net income (after tax) of sample firms, by size..
Effect of individual SEC recommendations on 1966 net income (after tax)
of sample firms...

1967___

Estimated management cost and expense ratios of internally managed
diversified investment companies with June 30, 1966, net assets of
$100 million and over for their fiscal years ended July 1, 1966-June 30,
Estimated management cost and expense ratios of internally managed
diversified investment companies with December 31, 1965, net assets of
$100 million and over for their fiscal years ended July 1, 1965-June 30,
1966_..

Executive compensation, 14 mutual fund advisory organizations_
Executive compensation in 177 corporations in 27 industries, 1966.
Expense ratios-internally managed versus externally managed invest-
ment companies___

587

587

580

17

220

327

328

285

First reductions in sales commission scales..

306

Gross sales needed for salesman to earn commissions of $15,000.
IBA member firms which have terminated business by dissolution or
merger, 1960-May 1, 1967, list of..

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Investment performance of 169 mutual funds and 1 dart-selected portfolio in a declining market.

807

Investors results: Average per annum rate of growth on a compound basis for mutual funds (3 tables)

178

Mutual fund assets and earnings of management companies, 1966-Mutual fund portfolio activity and investors purchases and redemptions during periods of market decline....

302

323

New York Stock Exchanges comments on the admendments proposed in
S. 1659_.

743

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