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A. 5 largest life insurance companies:

Equitable Life Assurance Society of the
United States, New York___.
Metropolitan Life Insurance Co., New York
Prudential Insurance Co. of America, Newark_
New York Life Insurance Co., New York____
Mutual Life Insurance Co. of New York, N. Y

B. 18 other insurance companies:

John Hancock Mutual Life Insurance Co.,
Boston, Mass___

Travelers Insurance Co., Hartford, Conn_.
Northwestern Mutual Life Insurance Co., Mil-
waukee, Wis___.

Mutual Benefit Life Insurance Co., Newark,
N. J

Sun Life Assurance Co. of Canada, Montreal,
Quebec.

Connecticut Mutual Life Insurance Co., Hart-
ford, Conn.

Massachusetts Mutual Life Insurance Co.,

Springfield, Mass.

New England Mutual Life Insurance Co.,
Boston, Mass__

Aetna Life Insurance Co., Hartford, Conn_‒‒‒
Penn Mutual Life Insurance Co., Philadelphia,
Pa----

State Mutual Life Assurance Co., Worcester,
Mass_

$241, 990, 000
163, 455, 000
87,900, 000
32, 315, 000
27,825, 000

$553, 485, 000

27,557, 000

24, 625, 000

8, 125, 000

7, 420, 000

6, 466, 000

3, 350, 000

3,025, 000

2, 650, 000
2,250,000

2, 000, 000

700, 000

Phoenix Mutual Life Insurance Co., Hart-
ford, Conn.

600,000

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Marshall & Ilsley Bank, Milwaukee, Wis_
Philadelphia National Bank_--

250,000

250,000

250,000

200,000

State-Planters Bank & Trust Co., Rich-
mond, Va_____

Boatmen's National Bank, St. Louis, Mo.
Marine National Exchange Bank, Mil-
waukee, Wis___

Second National Bank, Houston, Tex--.
Second National Bank & Trust Co., Sagi-
naw, Mich.

Central National Bank, Richmond, Va.-
Fort Worth National Bank, Fort Worth,
Tex-

Omaha National Bank, Omaha, Nebr__.
National Bank of Commerce, Seattle,
Wash_

Citizens National Bank, Washington, Pa-
Butler County National Bank & Trust
Co., Butler, Pa----

Braddock National Bank, Braddock, Pa-
Charleroi Savings & Trust Co., Charleroi,
Pa___

Logan National Bank & Trust Co., New
Kensington, Pa___

Second National Bank, Uniontown, Pa-

200, 000

175,000

150, 000

100, 000

100, 000

60,000

48,000

36, 000

36, 000

36,000
24, 000

Total

5,840, 000

$137, 540, 000

H. The Export-Import Bank..
I. Purchasers not identified_

Total

$10, 000, 000 219, 000

802, 187, 000

Mr. BOLLARD. Tabulation No. 3 is a list of purchasers of the $802,000,000 of private placements, and of the aggregates purchased by each.

Seventy-three purchasers purchased the entire amount of private placements, but only 36 purchasers, each one of whom got $1,000,000 or more, got 98 percent of the total. In other words, out of the total issue of $802,000,000 of private placements in 1938, 36 purchasers bought 98-plus percent and there is a list of them; the names and amounts of the purchases. The first group is the 5 largest life insurance companies; the second group is 18 other insurance companies. As we go through this list it will be interesting to see that the purchases of the small amounts acquired in these private purchases in almost every case, had some special relationship with the issuers. That seems to be the only reason they were able to get any participation. For example, if you take the other 18 insurance companies, and drop down to the bottom of the list you will see that $75,000 was bought by the National Guardian Life Insurance Co., Madison, Wis. That is part of an issue of the Madison Gas & Electric Co.

The one right above that is the Bankers Life Co., Des Moines, Iowa, which got $150,000 out of the $802,000,000—the $150,000 being part of an issue by the Iowa Power & Light Co.

The Continental American Life Insurance Co., of Wilmington, Del., got $20,000, the nxt item above, part of an issue by the Diamond State Telephone Co. of Pennsylvania.

The Fidelity Mutual Life Insurance Co., of Philadelphia, Pennsylvania, got $400,000. That is also a part of the Diamond State Telephone Co. issue.

The Rockefeller Institute for Medical Research bought $4,000,000 of a Standard Oil Co. of New Jersey issue. There, of course, is a close

connection.

Yale University, which was the one college or university participating, got $300,000. That was a part of an issue by Southern New England Telephone Co.

Then of the three savings banks participating one was the Philadelphia Savings Fund Society. Its participation was a part of that Diamond State Telephone Co. issue.

Of the five pension funds which participated, four were affiliated with the issuers, that is, four pension funds of companies which were issuers of private placement issues.

The Armour & Co. employees' pension fund which bought $10,000 was the only nonaffiliated pension fund participating.

Mr. YOUNGDAHL. Mr. Chairman.

Mr. CROSSER. Mr. Youngdahl.

Mr. YOUNGDAHL. Would it be convenient to yield for a question? Mr. BOLLARD. Yes.

Mr. YOUNGDAHL. In your figures as listed in tabulation No. 3 you do not give any amounts of less than $1,000,000.

Mr. BOLLARD. No, sir.

Mr. YOUNGDAHL. That means that these purchasers bought the entire issues, or that they bought a part of some larger issue.

Mr. BOLLARD. Yes. They were ordinarily a part of a larger issue. Mr. YOUNGDAHL. Have you any information in connection with private placements that were made in 1938, under a million dollars? Mr. BOLLARD. Yes. They were ordinarily a part of a larger issue. under a million dollars.

Mr. YOUNGDAHL. Therefore you have no idea and can give no opinion as to the number of issues under a million dollars that were privately placed?

Mr. BOLLARD. No, sir; I could not, Mr. Youngdahl. I can tell you how many issues between $1,000,000 and $3,000,000 inclusive were privately placed.

There were private placement issues in 1938 aggregating 88 in number; that is 88 issues comprised this $802,000,000. Of those 88 issues for $802,000,000, there were 40 issues between $1,000,000 and $3,000,000 inclusive, for an aggregate of $69,000,000 out of the $802,000,000. Does that help you?

Mr. YOUNGDAHL. Yes; that is very enlightening, but I would like to have this other question answered, if possible.

Mr. BOLLARD. In making this analysis, we excluded everything under $1,000,000. The amendment which the Investment Bankers Association is proposing requiring universal registration, with certain exceptions, does except all issues under $3,000,000 in the thought that a small issue is probably more likely to be a private transaction and we do not wish to place any hardship on what is bona fide a private transaction.

Mr. YOUNGDAHL. Well, do you not feel that a lot of issues between $100,000 and $1,000,000 today are made as private transactions, because otherwise they must go through registration?

Mr. BOLLARD. That is quite possible.

Mr. YOUNGDAHL. And therefore, as far as the smaller companies are concerned who handle many of these issues, consideration should be given to the suggestion of increasing the exemption even above $300,000?

Mr. BOLLARD. I beg your pardon. That is a detail which I was missing.

Mr. YOUNGDAHL. The law at the present time exempts issues from registration of $100,000 or less.

Mr. BOLLARD. Yes.

Mr. YOUNGDAHL. And it has been brought out in the testimony, that there has been a suggestion to exempt issues up to $300,000? Mr. BOLLARD. That is right.

Mr. YOUNGDAHL. Now, there are other issues between $300,000 and $1,000,000 in certain communities where small investors would like the opportunity of investing in the securities.

Mr. BOLLARD. Yes.

Mr. YOUNGDAHL. And, by raising the exemption to $500,000 or $1,000,000, allowing these issues which are now being taken away from the local investors by the private market, it would give the investors an opportunity to invest in these issues.

Mr. BOLLARD. Yes, sir. I am sorry that my analysis does not go under a million dollars, but it does not.

Mr. YOUNGDAHL. All right.

Mr. BOLLARD. As I have stated, out of this total of $802,000,000, there are only $70,000,000 in issues between $1,000,000 and $3,000,000, inclusive. That indicates that so far as the large totals are concerned, the aggregate of the smaller issues was not a major item.

Mr. YOUNGDAHL. Of course, in some sections of the country it might be so far as the small investors are concerned.

Mr. BOLLARD. Yes, sir; that is quite true.

Mr. YOUNGDAHL. All right.

Mr. BOLLARD. We were just at page 2, I think, of this tabulation No. 3, which gives a list of the commercial banks participating in the private placements. There you have the name of the bank and the amount which each acquired.

There again, when you drop down to the smaller amounts, there is a special relationship with the issuers. If you will look at that list you will see that among the 23 banks outside of New York City which participated in the private placements, the 6 smallest amounts shown there each of them being less than $100,000—those were parts of an issue placed by Jones & Laughlin Steel Co. with those Pennsylvania banks, whose names are given there. The largest participation in the group of 23 is for $750,000, going to the First & Merchants National Bank of Richmond, $500,000 of the $750,000 was a part of the Virginia Electric Power Co. issue. Similar considerations applied to a number of these smaller banks' participations, showing that many private placement distributions really are concentrated except for some special situation, in the great life-insurance companies and the very large commercial banks.

Now, if you will turn to tabulation No. 4. (Tabulation No. 4 is as follows:)

TABULATION No. 4.-Institutional holders, to extent reported, as of December 31, 1938, of new bond and note issues of $1,000,000 or more whose registration with Securities and Exchange Commission became effective during 1938. All publicly offered

FOUNDATIONS

Carnegie Foundation for the Advancement of Teaching, New York, N. Y.

37 COLLEGES AND UNIVERSITIES LOCATED IN 17 STATES

Amherst College, Amherst, Mass.
Berea College, Berea, Ky.
Bowdoin College, Brunswick, Maine.
Brown University, Providence, R. I.
Carleton College, Northfield, Mass.
Colby College, Waterville, Maine.
Cornell University, Ithaca, N. Y.
Dartmouth College, Hanover, N. H.
Denison University, Granville, Ohio.
Harvard College, Cambridge, Mass.
Johns Hopkins University, Baltimore,
Md.

Kenyon College, Gambier, Ohio.
Knox College, Galesburg, Ill.
Lehigh University, Bethlehem, Pa.
Massachusetts Institute of Technology,
Cambridge, Mass.

North Central College and Evangelical
Theological Seminary, Naperville, Ill.
Oberlin College, Oberlin, Ohio.
Pembroke College, Providence, R. I.
Princeton University, Princeton, N. J.
Radcliffe College, Cambridge, Mass.

Smith College, Northampton, Mass.
Stanford University, Palo Alto, Calif.
Tufts College, Medford, Mass.
University of Buffalo, Buffalo, N. Y.
University of Denver, Denver, Colo.
University of Illinois, Urbana, Ill.
University of Maine, Orono, Maine.
University of Minnesota, Minneapolis,

of Pennsylvania,

Phila

Minn.
University
delphia, Pa.
University of Pittsburgh, Pittsburgh,
Pa.

University of Rochester, Rochester,
N. Y.

University of Virginia, Charlottesville,
Va.

Vanderbilt University, Nashville, Tenn.
Vassar College, Poughkeepsie, N. Y.
Wellesley College, Wellesley, Mass.
Williams College, Williamstown, Mass.
Yale University, New Haven, Conn.

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