Mr. EICHER. If it has worked so well, how do you account for the fact that these fellows did what they did the other day? Those things

keep happening.

Mr. JONES. I do not think that that has anything to do with the sale of securities, Mr. Chairman.

Mr. EICHER. Does it not have a lot to do with the losses to the ultimate investor who is going to have to sustain the losses as a result of their defalcations?

Mr. JONES. I mean, this law would not change that. I think we have got a lot of other laws to cover that. If people are going to take money, we have laws on the books now to put them in jail.

Mr. EICHER. I know, but that simply occurred to me while you were uttering that diatribe against Government regulation in general.

Mr. JONES. I would say again against excessive regulation. I think there is a good deal of difference between regulation and such a piling up of laws, because I think that the Commission itself agrees that it would like to put some of these laws together so that there can be more simplified administration. In fact, it is working on it now.

We have in the Securities Act the requirement to file a registration statement; we have in general use a form known as Form A-2. The Commission has been working for months, have they not, Mr. Douglas, trying to get a simplified form for registration?

Commissioner DOUGLAS. We are constantly trying to improve the procedure down at our place.

And

Mr. JONES. I mention that as an answer to your question. here, instead of amending and putting what is necessary in existing acts, here we are superimposing on this structure another one which at this time would just inhibit that much more the capital markets, and it does not appear to me and to the people that I am with that this is the time to do that.

I might say in summarizing that these are the two main points: First, that I think this method of broad grants of power to the Commission is not the way to accomplish the purposes outlined in the bill and second, that I believe that the present is not the time to put through this legislation with its inhibiting effect on the capital markets. I thank you very much.

Mr. EICHER. Thank you, Mr. Jones, for your contribution.

STATEMENT OF RALPH CRANE, MONTCLAIR, N. J.

Mr. EICHER. We will hear Mr. Crane.

Mr. CRANE. Mr. Chairman, my name is Ralph Crane, Montclair, N. J. I am vice president of Brown, Harriman & Co., New York. I only have one thing to say. Our worry about this legislation has been that as we are just as anxious as any one to get this capital market reopened, anything that is done in the way of legislation that delays or extends the time will undoubtedly interfere with the progress we are making.

I do not want to say that this legislation is not sound. I am sure parts of it are very sound, but I am quite sure also that in requiring the approval of the indenture, we are going to add again to the delays of the securities market, things over which we have no control, particularly the corporations, which wish to borrow.

It took some time to meet the requirements and work out the provisions of registration under the Securities Act. It ultimately was worked out. Now, if this is to be added at this time, it seems to me that we are going to have other delays, and my own hope is that Congress will not pass this bill at this time, but will postpone it until some more opportune time and that in the meantime there will be opportunity for further studies that it may be done the best way possible to accomplish the purposes.

I thank you.

Mr. EICHER. Thank you, Mr. Crane.

This closes the hearings, unless Mr. Douglas or Mr. Burke wish to put in a little rebuttal.

Commissioner DOUGLAS. Mr. Chairman, I do not want at this time to submit any additional comments or observations. I would like, if the committee please, the privilege of extending my remarks covering some of the points that have been raised by the witnesses. There have been quite a number of misinterpretations of the bill, as I read it, touched upon by the witnesses and I would like to have the privilege of submitting at the end of this testimony, at this point in the record, a summary of some of those major points which I think deserve further comment.

Mr. EICHER. That will be confined to a factual summary?

Commissioner DOUGLAS. Yes.

Mr. EICHER. Without objection, that may be done.

Mr. AMBERG. Mr. Chairman, if I may say something off of the record.

Mr. EICHER. Yes.

(After informal discussion off the record, the following proceedings were had:)

Mr. EICHER. Mr. Amberg, the clerk makes this suggestion: If you care to submit a list of names of individual banks opposed to this bill in its present form, we will be very glad to include that in the record.

Mr. AMBERG. I do not want to be put in the position of building up opposition. I do not want to be in that position, Mr. Chairman.

Mr. EICHER. Very well, if there is nothing else, the hearings will be closed and the subcommittee will stand adjourned.

(Thereupon, at 5:20 p. m., the subcommittee adjourned as above indicated.)