sary to use the subpoena power to complete the investigation of the case. During the past year 140 formal orders were issued in connection with investigations handled through the Division of Trading and Exchanges. In addition, there were 23 formal orders issued upon recommendation of the Division of Corporation Finance. That Division also conducts certain investigative work in connection with the processing of filings made with that Division under the Securities Act of 1933 and the Securities Exchange Act of 1934.

When an investigation has been completed and enforcement action appears appropriate, the Commission may proceed in one of several ways. It may refer the case to the Department of Justice for criminal prosecution. The Commission may also, when appropriate, authorize the institution of civil proceedings for injunctive relief to halt further violations of the Federal securities laws. In such event the complaint is filed with the appropriate United States District Court and the case is presented by a member of the Commission's staff. Finally, the Commission may institute administrative proceedings when its investigation indicates that a registration statement or report filed with it is false or misleading or omits required information, or that a broker-dealer or investment adviser registered with this Commission is violating the Federal securities laws.

The following table reflects in summarized form the investigative activities of the Commission during fiscal 1962:

Investigations of possible violations of the Acts administered by the Commission

The preliminary investigation category was eliminated by the transfer December 31, 1961, of all pending P.I.'s (120) to docketed cases.

ENFORCEMENT PROBLEMS WITH RESPECT TO CANADIAN

SECURITIES

Continued progress was made during fiscal 1962 in reducing the unlawful offer and sale of Canadian securities in the United States. The continuing cooperation of responsible Canadian officials and segments of the Canadian securities industry has greatly reduced enforcement problems.

However, the problem has by no means ceased to exist. During the past fiscal year two former Toronto promotions were transferred to Nassau, British West Indies, and postal fraud orders were obtained against them at their new location. There are also indications that some Ontario promoters are transferring their base of operations to the Northwest Territories and British Columbia. As new developments become known, the Commission has instituted vigorous enforcement procedures including steps resulting in issuance of postal fraud orders.

Although the volume of violations has decreased, jurisdictional problems, including the status of the Supplementary Extradition Convention with Canada, remain troublesome.58

The Commission continues to maintain its Canadian Restricted List, which is a list of Canadian companies whose securities the Commission has reason to believe currently are being, or recently have been, distributed in the United States in violation of the registration requirements of the Securities Act of 1933. Failure to comply with the registration requirements deprives investors of material information and facilitates false claims as to the worth of such securities. Thus investors are denied the essential protections provided by the Securities Act.

The list and supplements thereto are issued to and published by the press and copies are mailed to all registered broker-dealers and are available to the public. The list serves as a warning to the public and alerts broker-dealers to the fact that transactions in the securities of the companies named therein may be unlawful. Most United States broker-dealers refuse to execute transactions in such securities. Twelve supplements to the list were issued in fiscal 1962. As a result of more effective enforcement activities, it was necessary to add only 9 names to the list during the year, compared to the 82 names added in fiscal 1960 and 47 in fiscal 1961. After deletion, upon compliance with established procedures, of 4 names during the year, the number of names on the list as of June 30, 1962, was 258.

The current list, as of September 30, 1962 follows:

58

See 26th Annual Report, pp. 202-203 for a description of some of these problems.

CANADIAN RESTRICTED LIST

CANADIAN RESTRICTED LIST-Continued

CANADIAN RESTRICTED LIST-Continued

Prestige Lake Mines, Ltd.

Primary Gold Mines, Ltd.

Prudential Petroleums, Ltd.

Quebec Graphite Corp.

Queensland Explorations, Ltd.
Quinalta Petroleum, Ltd.

Rambler Exploration Co., Ltd.

Red River Mining & Exploration, Ltd.
Regal Mining & Development, Ltd.
Resolute Oil and Gas Co., Ltd.
Revere Mining Corp., Ltd.
Riobec Mines, Ltd.

Roberval Mining Corp.

Rockroft Explorations, Ltd.
Rothsay Mines, Ltd.

Roxton Mining & Development Co.,
Ltd.

St. Anthony Mines, Ltd.

St. Lawrence Industrial Dev. Corp.
St. Stephen Nickel Mines, Ltd.
Saskalon Uranium and Oils, Ltd.
Sastex Oil and Gas, Ltd.
Savoy Copper Mines, Ltd.
Seaboard Industries, Ltd.
Senvil Mines, Ltd.
Sheba Mines, Ltd.

Sheraton Uranium Mines, Ltd.
Shoreland Mines, Ltd.
Sico Mining Corp., Ltd.
Sinclair Prospecting Syndicate
South Seas Mining, Ltd.
Space Age Mines, Ltd.
Stackpool Mining Co., Ltd.
Strathcona Mines, Ltd.
Sturgeon Basin Mines, Ltd.

Success Mines, Ltd.

Sudbay Beryllium Mines, Ltd.

Sudbay Exploration and Mining, Ltd.

Swift Cooper Mines, Ltd.
Tabor Lake Gold Mines, Ltd.

Taiga Mines, Ltd.

Tamicon Iron Mines, Ltd.

Taurcanis Mines, Ltd.

Temanda Mines, Ltd.

Territory Mining Co., Ltd.

Trans Nation Minerals, Ltd.

Trans-Oceanic Hotels Corp., Ltd.

Trenton Petroleum & Minerals Corp.,

Ltd.

Tri-Cor Mining Co., Ltd.
Triform Explorations, Ltd.
Triform Explorations (B.C.), Ltd.
Trio Mining Exploration, Ltd.
Trojan Consolidated Mines, Ltd.
Tumac Mining & Development Co.,
Ltd.

Turbenn Minerals, Ltd.
Turzone Explorations, Ltd.
Tyndal Explorations, Ltd.
Upper Ungava Mining Corp., Ltd.
Val Jon Exploration, Ltd.
Val Ray Explorations, Ltd.
Venus Chibougamau Mines, Ltd.
Ver-Million Gold Placer Mining, Ltd.

Vico Explorations, Ltd.
Vimy Explorations, Ltd.

Viscount Oil and Gas, Ltd.

Wakefield Uranium Mines, Ltd.

Webbwood Exploration Co., Ltd.

Western Allenbee Oil and Gas Co.,

Ltd.

Westwind Explorations, Ltd.

Windy Hill Mining Corp.

Wingdam & Lightning Creek Mining
Co., Ltd.

Yukon Prospectors' Syndicate

SECTION OF SECURITIES VIOLATIONS

A Section of Securities Violations is maintained by the Commission as a part of its enforcement program to provide a further means of detecting and preventing fraud in securities transactions. The Section maintains files providing a clearinghouse for other enforcement agencies for information concerning persons who have been charged with violations of various Federal and state securities statutes. Considerable information is also available concerning violators resident in the Provinces of Canada. The specialized information in