INVESTMENT COMPANIES HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON SEVENTY-SIXTH CONGRESS THIRD SESSION ON H. R. 10065 A BILL TO PROVIDE FOR THE REGISTRATION AND 239571 JUNE 13 AND 14, 1940 Printed for the use of the Committee on Interstate and Foreign Commerce T UNITED STATES WASHINGTON: 1940 HmPBA940 465 CONTENTS Hon Robert E. Healy Securities and Exchange Commission_. David Schenker, Securities and Exchange Commission__ Arthur H. Bunker, Lehman Corporation Willis I. Norton_ James White, Scudder, Stevens & Clark Dwight Rose, Investment Counsel, Association of America Warren Motley, Gaston, Snow, Hunt, and Rice... Communications from- Investment Bankers Association of America__ 81 82 82 82 82 93 INVESTMENT TRUSTS AND INVESTMENT COMPANIES THURSDAY, JUNE 13, 1940 HOUSE OF REPRESENTATIVES, INTERSTATE AND FOREIGN COMMERCE, Washington, D. C. The subcommittee met at 10 a. m., in the committee room, Hon. William P. Cole, Jr. (chairman of the subcommittee), presiding. Mr. COLE. The subcommittee will come to order. H. R. 8935 was introduced March 14, 1940, by Nr. Lea, of California. A companion bill, S. 3580, was introduced, at the same time in the Senate by Senator Wagner. Since that time the State Committee on Banking and Currency held extensive hearings on S. 3580, a companion measure to H. R. 8935, with the result that S. 4108 was reported on June 6 by the Senate Committee on Banking and Currency. In order to have that bill before us in House form also, (with the approval of Mr. Lea,) I introduced yesterday the same bill in the House, which is H. R. 10065. It is upon all of these bills that the hearing before this subcommittee will be held. I think that the committee will be more interested in the last two bills I mentioned, which present the views of the Senate Committee on Banking and Currency and with which we understand the industry is in agreement. (The House bill is as follows:) [H. R. 10065, 76th Cong., 3d sess.] A BILL To provide for the registration and regulation of investment companies and investment advisers, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, TITLE I-INVESTMENT COMPANIES FINDINGS AND DECLARATION OF POLICY SEC. 1. (a) Upon the basis of facts disclosed by the record and reports of the Securities and Exchange Commission made pursuant to section 30 of the Public Utility Holding Company Act of 1935, and facts otherwise disclosed and ascertained, it is hereby found that investment companies are affected with a national public interest in that, among other things— (1) the securities issued by such companies, which constitute a substantial part of all securities publicly offered, are distributed, purchased, paid for, exchanged, transferred, redeemed, and repurchased by use of the mails and means and instrumentalities of interstate commerce, and in the case of the numerous companies which issue redeemable securities this process of distribution and redemption is continuous; 1 |