A separate file is established for each person reporting on a given issuer or a given holding company system. At the close of the fiscal year 25,017 such files had been established for 23,340 different persons, representing largely the leaders of American business and industry, who had filed with the Commission a grand total of 86,993 reports, or an average of nearly 4 reports each. On the other hand, there are only about half dozen cases of persons who have failed to file reports apparently required of them under Section 16 (a) of the Securities Exchange Act or to furnish a satisfactory statement or explanation regarding their apparent non-compliance with the statutory requirement. Appropriate action is being taken in these cases. The Commission compiles and publishes semi-monthly an Official Summary of Security Transactions and Holdings of Directors, Officers, and Principal Stockholders as reported to it under Section 16 (a) of the Securities Exchange Act of 1934 and Section 17 (a) of the Public Utility Holding Company Act of 1935. Copies of these summaries are available at each regional office of the Commission and each national securities exchange, as well as at the office of the Commission in Washington, D. C. In addition, the actual reports filed are themselves available for public inspection at the office of the Commission in Washington, D. C. and the particular exchange with which copies relating to the issuer concerned are required to be filed. SOLICITATION OF PROXIES, CONSENTS, AND AUTHORIZATIONS The administration of the rules and regulations governing the solicitation of proxies, consents, or authorizations, adopted pursuant to Section 14 of the Securities Exchange Act of 1934, has involved, among other things, the examination of soliciting material sent to the security holders of more than 1,500 listed companies. This examination is for the purpose of determining whether the companies Lave complied with the rules and regulations of the Commission. The examination of proxy, consent, or authorization soliciting material tons, to the end that the purpose thereof may be more completely and effectively accomplished. Such a revision has been undertaken and is in the final stage of preparation. as disclosed the need for a general revision of these rules and regula During the past fiscal year, 1,896 proxies and approximately 230 amendments thereto were filed with the Commission. REPORT ON THE STUDY AND INVESTIGATION OF PROTECTIVE AND REORGANIZATION COMMITTEES The Commission continued work on the report to the Congress based on its study and investigation of the work, activities, personnel and functions of protective committees. This study, investigation, and report were authorized and directed by Section 211 of the Securities Exchange Act of 1934. During the preceding year, three parts of the report had been completed and submitted to the Congress. These were Part III, pertaining to the Committees for the Holders of Real Estate Bonds; Part IV, pertaining to the Committees for the Holders of Municipal and Quasi-Municipal Obligations; and Part VI, pertaining to Trustees Under Indentures. During the current year, three additional parts of the report have been completed. These are the following: Part I, entitled Strategy and Techniques of Protective and Reorganization Committees, which was transmitted to the Congress on May 10, 1937. Part II, entitled Committees and Conflicts of Interest, which was transmitted to the Congress on June 21, 1937. Part V, entitled Protective Committees and Agencies for Holders of Defaulted Foreign Governmental Bonds, which was transmitted to the Congress on May 14, 1937. The two remaining parts of the report are in process of completion. The basic recommendations contained in the Commission's reports were embodied in three bills introduced at the last session of Congress: The Barkley Bill (S. 2344); the Lea Bill (H. R. 6968); and Chapter X of the Chandler Bill (H. R. 6439; H. R. 8046). The last, Chapter X of which contains a complete revision of the corporate reorganization provisions of the existing law, revises the National Bankruptcy Act. It was passed by the House on August 10, 1937, and is now pending before the Senate, where it has been referred to the Committee on the Judiciary. The Barkley Bill, still pending before the Senate Committee on Banking and Currency, deals with the corporate trustee and the trust indenture. The Lea Bill, still pending before the House Committee on Interstate and Foreign Commerce, deals with the solicitation of deposits, proxies or assents in reorganization situations. Administrative powers created by the three bills would be vested in the Securities and Exchange Commission. Representatives of the Commission aided in drafting these bills and appeared before the Congressional committees at hearings on the bills and testified in support of them. 65 STUDY OF INVESTMENT TRUSTS AND INVESTMENT COMPANIES In the Commission's study of investment trusts and investment companies, undertaken pursuant to the Congressional mandate of Section 30 of the Public Utilities Act of 1935, the major portion of the work was completed during the fiscal year. In addition to four questionnaires distributed at the inception of the study, the Commission, with cooperation of the representatives of the industry, prepared a questionnaire for common or commingled trust funds and another for investment counsel and investment advisory services. Both questionnaires were of the summary type and required only basic information. As of June 30, 1937, the Commission had received questionnaire replies from 495 management investment companies; from 178 fixed investment trusts; from 37 investment special plans; from 5 companies offering guaranteed face amount certificates; from 16 common trust funds; and from 400 investment counsel organizations. The great amount of material received by the Commission in response to its questionnaires, the unexpected ramifications of the activities of investment companies and investment trusts discovered in the course of the study, and the necessity of including a considerable number of additional investment organizations in the study, has delayed the Commission in submitting its final report and its recommendations to the Congress. On January 8, 1937, the Commission submitted to the Congress a progress report indicating the Commission's method of procedure and detailing the progress of the study and its status. Detailed studies have been made of the larger investment trusts and investment companies and of a number of smaller companies regarded as representative examples. These have been based in most instances upon the information furnished by the companies in reply to the questionnaire and in some instances through a field study of the books and records of the companies. During the fiscal year, public examinations were held on approximately 125 investment companies and investment trusts at which about 20,000 pages of testimony were taken and 2,100 exhibits introduced into evidence. All public examinations were preceded by preliminary conferences with respresentatives of the companies At the close of the fiscal year, the Commission had received informaof the study and had almost completed its field studies. Considerable tion from practically all companies believed to be within the purview progress had been made on the statistical and analytical study of the material collected, and on the preparation of the final report. A list of public hearings held in connection with this study during the fiscal year ended June 30, 1937, follows: Investment Trusts and Investment Companies of the Management Type-Contd. Name of Trust or Company ng M&T Securities Corp- January 18, 1937 Maryland Fund, Inc. (Ross Beason Group). January 27, 28, 29, 1937 Massachusetts Investors Trust. Mayflower Associates, Inc.. September 21, 1936 October 13, 1936 National Bond & Share Corp-- National Liberty Insurance Companies.. Old Colony Investment Trust.. Pacific Eastern Corp (Formerly known as Goldman Sachs Trading Corp.) Pacific Investors, Inc----- Petroleum Corporation of America.. Phoenix Securities Corp- Prudential Investors, Inc. Public Utilities Corp- Reliance International Corp-. Reliance Management Corp- Second National Investors- Securities Allied Corp. (formerly known as Chatham Phenix Corp.) Serities Research Corporation. amut Association. - mut Bank Investment TrustSandoah Corporation.. September 16, 1936 June 2, 3, 4, 8, 9, 10, 11, 1937 April 1, 1937 November 19, 1936 November 19, 1936 June 2, 3, 4, 8, 9, 10, 11, 1937 December 2, 3, 1936 August 5, 6, 7, 1936 August 5, 6, 7, 1936 October 26, 27, 1936 May 13, June 28, 29, 30, 1937 August 12, 1936 October 7, 1936 October 7, 1936 June 2, 3, 4, 8, 9, 10, 11, 28, 29, 30, 1937 |