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CONTENTS

Statements of —

Page

Eicher, Hon. Edward C., Chairman, Securities and Exchange Com-

mission.

3

Purcell, Hon. Ganson, Commissioner, Securities and Exchange Com-

mission..

3, 271

Connely, Emmett F., Investment Bankers' Association of America,

Detroit, Mich.

93

Marks, Laurence M., National Association of Securities Dealers, New
York City

97

Rea, George P., New York Curb Exchange.

98

Schram, Emil, New York Stock Exchange-

102

Jones, Frayser, National Association of Manufacturers, New York
City-

107, 244

Wadsworth, Hon. James W., Member of Congress from State of New

York..

120

Twombly, Edward B., Commerce and Industry Association of New

York, New York City--

120

Hawes, Stewart S., National Association of Securities Dealers, Inc.,

New York City -

129

Stewart, R. McLean, Investment Bankers Association of America,

New York City.

135

Hilliard, Edward H., of J. J. B. Hilliard & Son., Louisville, Ky-

208

Scribner, Joseph W., of Singer, Deane & Scribner, Pittsburgh, Pa--- 224

Dickson, Rush S., of R. S. Dickson & Co., Inc., Charlotte, N. C. 229

Loomis, John S., Illinois Co., Chicago, Ill --

233

Putney, William, Putney, Twombly & Hall, attorneys, New York

City.

236

Reis, Bernard J., executive director, American Investors Union, New

York City -

251

Statistical tables submitted:

Distribution of six typical issues..

190

Distribution of American Viscose Corporation stocks.

199

Printing and engraving expense for issues effectively registered under

the Securities Act of 1933–

Table I, by type and period..

294

Table II, by type and size.

295

Table III, by type and size.

296

Flotation costs per $100 of securities offered ..

299

Documents submitted:

Report of N. A. M. Committee on Industrial Financing -

115

Changes Proposed in Methods of Offering and Selling Securities-- 138

Exempt Securities ---

200

Exempt Transactions..

203

Distribution of Securities by States--

205

Distribution of Viscose Common Stock by States -

206

PROPOSALS FOR AMENDMENTS TO SECURITIES ACT OF 1933 AND THE SECURITIES EXCHANGE ACT OF 1934

TUESDAY, OCTOBER 28, 1941

HOUSE OF REPRESENTATIVES,
COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, ,

Washington, D. C. The committee met, pursuant to call, at 10 a. m., in the committee room, New House Office Building, Hon. Clarence F. Lea (chairman), presiding.

The CHAIRMAN. The committee will come to order.

It seems probably appropriate that the chairman might make a brief statement this morning.

The hearings we are beginning this morning are to consider amendments of the Securities Act of 1933 and the Securities Exchange Act of 1934. Each of these acts were in the nature of pioneer legislation. They have now been in effect for over 7 years. It would be in accordance with the normal history of legislation if experiences under these acts by the regulatory agency, as well as by the industries, would indicate the need of at least some amendments.

From time to time, in recent years, suggestions have come from various sources urging Congress to revise this legislation in the light of experiences under it. The present hearing is the direct result of proposals for such consideration made over 18 months ago and which finally led to the Securities Exchange Commission entering upon a comprehensive study of these two acts in connection with various business groups including the Investment Bankers' Association of America, the National Association of Security Dealers, Inc., the New York Curb Exchange, and the New York Stock Exchange.

The result of that study is before us in the form of a committee print which includes an aggregate of over 80 proposed amendments, about 20 of which may be regarded of substantial substance and the remainder of which are of more or less minor importance.

This study has been a very commendable and helpful effort to aid this committee and the Congress to weigh the value of the suggested amendments.

Much of the time during the last 10 years the country has suffered from great idleness of capital and labor. As a result we have had a reduced national income, increased relief and dependency, and a great increase in the national debt.

Such problems as these may at first blush appear merely to concern business, but in their broader aspects they encompass the economic, political, and social welfare of the people of our country. They affect labor employment and our standard of living just as much as they affect dividends.

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