Imágenes de páginas
PDF
EPUB

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE
COMMITTEE ON BANKING AND CURRENCY

UNITED STATES SENATE
EIGHTY-EIGHTH CONGRESS

FIRST SESSION

ON
S. 1642

A BILL TO AMEND THE SECURITIES ACT OF 1933, AS AMENDED,
AND THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED,
TO EXTEND DISCLOSURE REQUIREMENTS TO THE ISSUERS OF
ADDITIONAL PUBLICLY TRADED SECURITIES, TO PROVIDE
FOR IMPROVED QUALIFICATION AND DISCIPLINARY PROCE-
DURES FOR REGISTERED BROKERS AND DEALERS, AND FOR

OTHER PURPOSES

JUNE 18, 19, 20, 21, 24, AND 25, 1963

Printed for the use of the Committee on Banking and Currency

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1963

20-226

For sale by the Superintendent of Documents, U.S. Government Printing Office

Washington 25, D.C.. Price $1.50

COMMITTEE ON BANKING AND CURRENCY
A. WILLIS ROBERTSON, Virginia, Chairman

JOHN SPARKMAN, Alabama WALLACE F. BENNETT, Utah.
PAUL H. DOUGLAS, Illinois JOHN G. TOWER, Texas
JOSEPH S. CLARK, Pennsylvania JACOB K. JAVITS, New York
WILLIAM PROXMIRE, Wisconsin MILWARD L. SIMPSON, Wyoming.

HARRISON A. WILLIAMS, JB., New Jersey PETER H. DOMINICK, Colorado FDMUND S. MUSEIE, Maine

EDWARD V. LONG, Missouri

MAURINE B. NEUBERGER, Oregon
THOMAS J. McINTYRE, New Hampshire

MATTHEw HALE, Chief of Staff

SUBCOMMITTEE ON SECURITIES
HARRISON A. WILLIAMS, J.R., New Jersey, Chairman

A. WILLIS ROBERTSON, Virginia JACOB K. JAVITS, New York. EDMUND S. MUSEIE, Maine WALLACE F. BENNETT, Utah, EDWARD W. LONG, Missouri JOHN G. TOWER, Texas

[merged small][ocr errors]

CONTENTS

[ocr errors]

WITNESSES

TUESDAY, JUNE 18

William L. Cary, Chairman, Securities and Exchange Commission, ac-

companied by Byron D. Woodside, Commissioner, J. Allen Frear, Jr.,

Commissioner, Manuel F. Cohen, Commissioner, Jack Whitney II,

Commissioner, Philip A. Loomis, Director, Division of Trading and Ex-

changes, Milton H. Cohen, Director, Special Study of the Securities

Markets-----------

WEDNESDAY, JUNE 19

Hudson B. Lemkau, vice chairman, board of governors, National Associa-

tion of Securities Dealers, Inc., accompanied by Avery Rockefeller, Jr.,

chairman, advisory committee to the board of governors, A. Jackson

Goodwin, Jr., member, board of governors, Robert W. Haack, member

board of governors, Wallace H. Fulton, executive director, Maro A.

White, general counsel. ----

Bayard Dominick, Dominick & Dominick, New York, N.Y., and president,

Association of Stock Exchange Firms, accompanied by George J. Otto,

Irving Lundborg & Co., San Francisco, Calif., chairman of the Pacific

Coast Stock Exchange, G. Shelby Friedrichs, Howard, Weil, Labouisse,

Friedrichs & Co., New Orleans, La., a current governor of National

Association of Securities Dealers, Inc., James Crane Kellogg III, Spear,

Leeds & Kellogg, New York, N.Y., former chairman of New York Stock

Exchange, Francis J. Hughes, general counsel, Association of Stock

Exchange Firms.----------

Amyas Ames, president, Investment Bankers Association of America,

accompanied by Murray Hanson, managing director and general

counsel, William Ward Foshay, partner, Sullivan & Cromwell, New York,

N.Y., special counsel ---

THURSDAY, JUNE 20

John C. Williamson, director of governmental relations, National Associa-

tion of Real Estate Boards--

Morris A. Schapiro, president, M. A. Schapiro & Co., Inc.---

Ralph P. Coleman, Jr., publisher and editor, Over-the-Counter Securities

Review.----

Dennis E. Murphy, vice president, the Ohio Co-----

Richard Ney, Richard Ney & Associates...

FRIDAY, JUNE 21

G. Keith Funston, president, New York Stock Exchange, accompanied by

Edward C. Gray, executive vice president, and Samuel L. Rosenberry,

counsel.--

---------------------------------

Edwin D. Etherington, president, American Stock Exchange, accompanied

by Martin J. Keena, vice president, and Peter G. Schmidt, staff member.

James E. Day, president, Midwest Stock Exchange, accompanied by

John G. Weithers, secretary, and Joseph N. Morency, Jr., counsel ----

Albert H. LeShane, treasurer, Employers' Group Associates.------------

[ocr errors]
[ocr errors]
[ocr errors]
[ocr errors]
[ocr errors]
[ocr errors][ocr errors]

161

163
65

Monday, JUNE 24

, William McChesney Martin, Jr., Chairman, Board of Governors, Federal
ë. System, accompanied by David B. Hexter, Assistant General
OunSel--------------------------------------------------------
James J. Saxon, Comptroller of the Currency, Treasury Department, ac-
companied by Robert Bloom, Chief Counsel-------------------
William C. Ridgway, Jr., on behalf of Association of Casualty & Surety
Companies and National Board of Fire Underwriters-----------------

Lewis D. Gilbert, appearing as a shareholder--------------------------

William F. Kelly, president of the First Pennsylvania Banking & Trust Co.,
Philadelphia, Pa., and vice president of the American Bankers Asso-
ciation---------------------------------------------------------

ALPHABETICAL LIST OF WITNESSES

Ames, Amyas, president, Investment Bankers Association of America;
accompanied by Murray Hanson, managing director and general coun-
sel, William Ward Foshay, partner, Sullivan & Cromwell, New York,
N.Y., special counsel---------------------------------------------

Cary, William L., Chairman, Securities and Exchange Commission:

accompanied by Byron D. Woodside, Commissioner, J. Allen Frear, Jr.,

Commissioner, Manual F. Cohen, Commissioner, Jack Whitney II,

Commissioner, Philip A. Loomis, Director, Division of Trading and

* Milton H. Cohen, Director, Special Study of the Securities
arkets--------------------------------------------------------

Coleman, Ralph P., Jr., publisher and editor, Over-the-Counter Securities

Review---------------------------------------------------------

Day, James E., president, Midwest Stock Exchange; accompanied by
%h. G. Weithers, secretary, and Joseph N. Morency, Jr., counsel------

Dominick, Bayard, Dominick & Dominick, New York, N.Y., and president,

Association of Stock Exchange Firms; accompanied by Georg: J. Otto,

Irving Lundborg & Co., San Francisco, Calif., chairman of the Pacific

Coast Stock Exchange, G. Shelby Friedrichs, Howard, Weil, Labouisse,

Friedrichs & Co., New Orleans, La., a current governor of National

Association of Securities Dealers, Inc., James Crane Kellogg III, Spear,

Leeds & Kellogg, New York, N.Y., former chairman of New York Stock

Exchange, Francis J. Hughes, general counsel, Association of Stock

Exchange Firms-------------------------------------------------

Etherington, Edwin D., president, American Stock Exchange; accompanied

by Martin J. Keena, vice president, and Peter G. Schmidt, staff member-

Funston, G. Keith, president, New York Stock Exchange, accompanied by

Edward C. Gray, executive vice president, and Samuel L. Rosenberry,

counsel---------------------------------------------------------

Gilbert, Lewis D., appearing as a shareholder-------------------------

Kelly, William F., president of the First Pennsylvania Banking & Trust

Co., Philadelphia, Pa., and vice president of the American Bankers

Association-----------------------------------------------------

Lemkau, Hudson B., vice chairman, board of governors, National Asso-

ciation of Securities Dealers, Inc.; accompanied by Avery Rockefeller, Jr.,

chairman, advisory committee to the board of governors, A. Jackson

Goodwin, Jr., member, board of governors, Robert W. Haack, member,

board of governors, Wallace H. Fulton, executive director, Marc A.

White, general counsel -------------------------------------------

LeShane, Albert H., treasurer, *8. Group Associates.------------

Martin, William McChesney, Jr., Chairman, Board of Governors, Federal

Reserve System; accompanied by David B. Hexter, Assistant General

Counsel --------------------------------------------------------

Murphy, Dennis E., vice president, the Ohio Co. ----------------------
Ney, Richard, Richard Ney & Associates-----------------------------
Ridgway, William C., Jr., on behalf of Association of Casualty & Surety
Companies and National Board of Fire Underwriters-----------------
Saxon, James J., Comptroller of the Currency, Treasury Department;
accompanied by Robert Bloom, Chief Counsel----------------------

Schapiro, Morris A., president, M. A. Schapiro & Co., Inc.--------------

Williamson, John C., director of governmental relations, National Asso-

ciation of Real Estate Boards------------------------------------

[merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small]

163

167

119

126

228

171

99

93

Insurance Association of America, and Martin B. Williams, Life Insurers Page

Conference---------- *------------------------------------------- 268

American Stock Exchange, Edwin D. Etherington, president:

Letter from J. P. Cummings, partner, Peat, Marwick, Mitchell & Co.,

New York, N.Y--------------------------------------------- 146

Technical statement------------------------------------------- 154

Association of Mutual Fund Plan Sponsors, Inc., New York, N.Y.: Letter
from James M. Landis, chairman of the board and general counsel----- 271
Association of the Bar of the City of New York: Letter from William J.
Ivey, secretary-------------------------------------------------- 262
Bills: Earlier Senate Frear-Fulbright proposals considered by the Banking
and Currency Committee:
S. 2408, 81st Congress, 1st session------------------------------- 461
S. 1860, 82d Congress, 1st session-------------------------------- 462
S. 2054, 84th Congress, 1st session------------------------------- 464
S. 1168, 85th Congress, 1st session------------------------------- 466
Boston Stock Exchange: Telegram from Weston W. Adams, president--- 257
Chamber of Commerce of the United States: Letter from Theron J. Rice,
manager, legislative department----------------------------------- 277

Comptroller of the Currency. See Treasury Department.

Detroit Stock Exchange: Telegram from Walter A. Bayer, president----- 257

Federal Deposit Insurance Corporation: Report----------------------- 225

Federal Reserve System: Report------------------------------------ 223

Ford, Charles, Montclair, N.J.: Letter------------------------------- 469

Frear-Fulbright proposals. See Bills.

Harris Trust & Savings Bank, Chicago, Ill.: Letter from Kenneth V.

Zwiener, president----------------------------------------------- 259

Investment Company Institute: Memorandum from Robert L. Augen-

blick, general counsel-------------------------------------------- 260

Investors Diversified Services, Inc., Minneapolis, Minn.: Letter consti-

tuting statement of Thomas M. Moses, president-------------------- 273

Landis, Feldman, Reilly & Akers: Letter from James M. Landis, chairman

of the board and general counsel of the Association of Mutual Fund

Plan Sponsors, Inc.----------------------------------------------- 271

Life Insurance Association of America, New York, N.Y.: Letter and

statement from Eugene M. Thoré, vice president and general counsel,

along with Glendon E. Johnson, American Life Convention, and Martin

B. Williams, Life Insurers Conference------------------------------ 26S

Life Insurers Conference, Richmond, Va.: Letter and statement from

Martin B. Williams, executive vice president, along with Glendon E.

Johnson, American Life Convention, and Eugene M. Thoré, Life Insur-

ance Association of America-------------------------------------- 26S

Midwest Stock Exchange, Chicago, Ill.: Letter from James E. Day,

president------------------------------------------------------- 162

National Association of Independent Insurers, Chicago, Ill.: Arthur C.

Mertz, general counsel------------------------------------------- 267

National Association of Life Companies, Inc.: Statement by Devereaux F.

McClatchey, general counsel, Atlanta, Ga- - - - - - - - - - - - - - - - - - - - - - - - - - 275

National Association of Real Estate Boards, Chicago, Ill.: Resolution
entitled “Real Estate Securities,” submitted by John C. Williamson,
director of governmental relations--------------------------------- 96
National Stock Exchange, New York, N.Y.: Letter from Lawrence H.
Taylor, chairman of the board------------------------------------ 257

Oregon Bankers Association: Telegram from Lester E. Thayer, executive

secretary------------------------------------------------------- 260

Pacific Coast Stock Exchange: Letter from Thomas P. Phelan, president- 79

Schapiro, Morris A., president, M. A. Schapiro & Co., Inc.:

Commerical banks listed in order of capital accounts on March 18,

1963: Table listing 45 banks------------------------------ Faces 101

“Don’t Tell the Stockholders”: Article from Bank Stock Quarterly,

March 1962------------------------------------------------- 104

tter-------------------------------------------------------- 108

Enclosures:

Listing Bank Stocks on the Exchanges------------------- 110

“Stock Options Without Disclosure”: Article from Bank

Stock Quarterly, June 1963--------------------------- 108

« AnteriorContinuar »