An additional attempt to test the constitutionality of the Act in a proceeding of this type was made by the trustees of the Central West Public Service Co., debtor, in reorganization under Section 77B in the District Court for the District of Delaware. On November 29, 1935, the trustees' petition for a decision on the constitutionality of the Act was denied on the ground that this attempted method of raising constitutional questions "violates accepted canons of accepted legal procedure" (13 F. Supp. 239). FORMAL OPINIONS During the past year, the Commission issued 121 formal opinions involving matters under the Securities Act of 1933, the Securities Exchange Act of 1934 and the Public Utility Holding Company Act of 1935. These opinions were issued in the following cases: DECLARING APPLICANT NOT TO BE A HOLDING COMPANY: In the Matter of Clearfield Bituminous Coal Corporation-- Irving Trust Co., Trustee in Bankruptcy of— National Electric Power Co., National Public Service Mar. 31, 1936 Electric Management & Engineering Corporation. Jan. 10, 1936 Italian Superpower Corporation....... The Lehigh Coal & Navigation Co.. DECLARING APPLICANT NOT TO BE SUBSIDIARY COMPANIES OF A In the Matter of Cresson Electric Light Co., Gallitzin Electric Light Co., EXEMPTION OF SECURITY ISSUE PURSUANT TO SECTION 6 (b): In the Matter of Connecticut River Power Co... East Missouri Power Co..... The Georgetown Gaslight Co___ Georgetown Gaslight Co. of Montgomery County, Md.. Rosslyn Gas Co..... Washington Gas Light Co.____ Jan. 29, 1936 May 23, 1936 Mar. 27, 1936 Southeastern Massachusetts Power & Electric Co... Jan. Washington Gas Light Co. of Montgomery County, Md. EXEMPTION FROM PROVISIONS OF THE ACT: In the Matter of Altoona & Logan Valley Electric Railway Co.--- (Protective Committee under Deposit Agreement Mar. 31, 1936 June 23, 1936 Berwind-White Coal Mining Co.--- Apr. 4, 1936 ETEMPTION FROM PROVISIONS OF THE ACT-Continued. In the Matter of-Continued. Louisville Gas & Electric Co.-.-. Lynn Gas & Electric Co. and trustees_ The Narragansett Electric Co--- The Nashville, Chattanooga & St. Louis Railway Co. Northern Pennsylvania Power Co. and The Waverly Northern States Power Co.. Pacific Lighting Corporation___. June 29, 1936 Mar. 27, 1936 May 28, 1936 Mar. 27, 1936 June 23, 1936 June 29, 1936 June 23, 1936 Oxford Paper Co............. Mar. 31, 1936 Jan. 13, 1936 Pennsylvania Coal & Coke Corporation....... Mar. 31, 1936 Pennsylvania Water Service Co.-- July 1, 1936 Philokla Gas Co. & Phillips Petroleum Co... May 23, 1936 The Singer Manufacturing Co-- Scranton-Spring Brook Water Service Co___ Southern States Power Co..-- William R. Staats Co. and San Gorgonio Electric Cor June 29, 1936 Mar. 27, 1936 Apr. 14, 1936 poration June 23, 1936 Standard Oil Co. (an Indiana corporation) _ Apr. 11, 1936 Stanolind Oil & Gas Co. and The Shannon Gas & Elec tric Co.. May 23, 1936 The Stark Electric Railroad Co.. Stearns Coal & Lumber Co.. The Texas Corporation _ _. Union Pacific Railroad Co--- United States Steel Corporation, American Sheet & Tin Western Massachusetts Cos. Westmoreland Coal Co.. J. G. White & Co... Mar. 31, 1936 Do. May 20, 1936 Apr. 22, 1936 May 23, 1936 Mar. 27, 1936 Mar. 31, 1936 Apr. 30, 1936 SECURITIES VIOLATIONS FILES During the year, considerable progress was made in assembling and compiling information for the securities violations files. As stated in the last annual report, these files were established on May 1, 1935, to provide a control index and clearing house for information relating to securities frauds in the United States and Canada. As of June 30, 1936, the Commission has assembled data regarding the records of 21,775 persons against whom State and Federal action has been taken during the past 10 years in connection with the sale of securities. The Commission has continued negotiations with the Post Office Department, the Federal Bureau of Investigation, State Securities Commissions, State and Federal prosecuting officials, Better Business Bureaus, Chambers of Commerce, etc., with a view to securing records and information for the securities violations files and in order to supply these agencies with information available in these files and useful to such agencies. A monthly confidential bulletin is published and sent to approximately 750 of the agencies engaged in the prevention and punishment of securities frauds. The information published in these bulletins has aided materially in the apprehension of persons wanted for securities violations. REPORT ON THE STUDY AND INVESTIGATION OF PROTECTIVE AND REORGANIZATION COMMITTEES Pursuant to Section 211 of the Securities Exchange Act of 1934, which authorized and directed the Commission to make a study and investigation of the work, activities, personnel, and functions of protective and reorganization committees, the Commission made an intensive and thorough study and investigation of these committees. The statute directed the Commission to report the result of its studies and investigations and its recommendations to the Congress on or before January 3, 1936. The magnitude of the task prevented the completion of the investigation in time to compile and assemble the voluminous factual material into a report within the time permitted by the mandate, although a strenuous endeavor was made to do so. However, a preliminary report was submitted to the Congress on January 3, 1936. The Commission is preparing its final report in 7 parts. Three parts have been completed and submitted to Congress as follows: PART III which was transmitted to the Congress on June 3_1936, pertains to the Committees for the Holders of Real Estate Bonds. |