LETTER OF TRANSMITTAL SECURITIES AND EXCHANGE COMMISSION, SIR: On behalf of the Securities and Exchange Commission, I have the honor to transmit to you the Twenty-Sixth Annual Report of the Commission covering the fiscal year July 1, 1959, to June 30, 1960, in accordance with the provisions of Section 23(b) of the Securities Exchange Act of 1934, approved June 6, 1934; Section 23 of the Public Utility Holding Company Act of 1935, approved August 26, 1935; Section 46 (a) of the Investment Company Act of 1940, approved August 22, 1940; Section 216 of the Investment Advisers Act of 1940, approved August 22, 1940; and Section 3 of the act of June 29, 1949, amending the Bretton Woods Agreement Act; and Section 11(b) of the Inter-American Development Bank Act. Respectfully, Harold C. Patterson Harold C. Patterson was serving his second term as a member of the Securities and Exchange Commission at the time of his death on November 29, 1960. He brought to his high offices in the public service a broad experience and a vast fund of knowledge of the Nation's financial community. Able, forthright and just, he was ever devoted to the objectives for which the Commission was created by the Congress. These qualities made him a stalwart advocate of the cause of investor protection. His trenchant analysis of the many problems confronting the Commission and the wisdom which characterized his decisions earned the admiration and respect of its members, the staff and the public. His counsel will be sorely missed by those who must continue, as we know he would have desired, with the tasks that lie ahead. To each of us who had the good fortune to know him his passing leaves a deep personal void as well. Ever a staunch friend, he shared generously of his time, his talents, and his experience. We here record our profound sorrow at his passing and our deep sympathy for the members of his bereaved family. Edward N. Gadsby Byron D. Woodside The Securities Act of 1933. Amendment of Rule 133. Adoption of Rule 136; Amendment of Rule 140.. Rescission of Regulation A-M.. Amendment of Regulation A....... Rescission of Regulation B-T. Adoption of Regulation F.. Amendment to Form S-9.. Adoption of Form S-14.. The Securities Exchange Act of 1934. Amendment of Rules 16b-2 and 16c-2 Amendment of Rule 16b-3_. Amendment of Rule 16b-8_ Proposed Rule 19a2-1... Amendment of Form 8-K. Amendment of Form 9-K. V 9 9 11 11 15 REVISION OF RULES, REGULATIONS AND FORMS-Continued The Public Utility Holding Company Act of 1935.. Rescission of Rule 9... Modification of Rule 28. Interpretation of Rule 50... Withdrawal of proposed revision of Rule 70--- The Investment Company Act of 1940-- Adoption of Rule 3c-2.. Adoption of Rule 14a-1. Amendment of Rule 20a-1; adoption of Rules 20a-2 and 20a-3-- PART IV Page 23 23 23 24 24 25 25 25 26 28 Subpoena enforcement action under Securities Act of 1933.. Suits against the Commission.. 62 63 PART V ADMINISTRATION OF THE SECURITIES EXCHANGE ACT OF 1934___ Regulation of exchanges and exchange trading. Registration and exemption of exchanges Disciplinary actions_____ Registration of securities on exchanges.. Statistics relating to registration of securities on exchanges... Market value of securities traded on exchanges.. Fiscal year share values and volumes___. Foreign stock on exchanges.. Comparative exchange statistics___ Delisting of securities from exchanges. Delisting proceedings under section 19(a). Unlisted trading privileges on exchanges.- Applications for unlisted trading privileges. Block distributions reported by exchanges.. Manipulation and stabilization_ Manipulation.. ADMINISTRATION OF THE SECURITIES EXCHANGE ACT OF 1934 Continued Insiders' security holdings and transactions.. Ownership reports. - Recovery of short swing trading profits by issuer. Regulation of proxies - - Scope of proxy regulation___- Statistics relating to proxy statements. Stockholders' proposals.- Ratio of soliciting to non-soliciting companies... Proxy contests. - Regulation of broker-dealers and over-the-counter markets....... Registration Administrative proceedings. Revocation proceedings. Denial proceedings.-- Suspension proceedings.. Other sanctions__ Net capital rule.. Financial statements. Broker-dealer inspections_ Supervision of activities of National Association of Securities Dealers, Inc... NASD disciplinary actions.. Commission review of NASD disciplinary action_. Commission review of NASD action on membershipLitigation under the Securities Exchange Act of 1934... Participation as Amicus Curiae. PART VI ADMINISTRATION OF THE PUBLIC UTILITY HOLDING COM- Page 84 84 86 86 86 87 87 88 88 89 89 89 92 106 107 109 113 113 114 116 117 119 121 123 127 129 Composition of registered holding company systems-summary of changes.. 130 Developments in individual registered systems.. 133 Other matters... 142 Financing of active registered public utility holding companies and their subsidiaries___ 145 Competitive bidding.. 146 Protective provisions of first mortgage bonds and preferred stocks 148 PART VII PARTICIPATION OF THE COMMISSION IN CORPORATE RE- |