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gation involving securities violations, the Commission issues a number
rectors and Principal Stockholders. Quarterly:
Financial Report, U.S. Manufacturing Corporations (jointly with the Fed
eral Trade Commission). Plant and Equipment Expenditures of U.S. Corporations (jointly with the
Department of Commerce).
Working Capital of U.S. Corporations.
Annual Report of the Commission.
der the 1940 Act. Corporate Pension Funds.
Directory of Companies Filing Annual Reports.
Decisions and Reports of the Commission.
ORGANIZATION The Commission's staff consists of attorneys, security analysts, accountants, engineers, investigators and administrative and clerical personnel.
The following organizational changes have been made since June 30, 1962, in accordance with the Commission's policy of continuing review of its organization and functional alignments:
As noted in last year's report, 61 a Branch of Investment Company Inspections was established in the Division of Corporate Regulation in July 1962, to plan and supervise the Commission's investment company inspection program. In December 1962, this Branch was assigned the responsibility for investigations and enforcement actions with respect to investment companies, and is now called the Branch of Investment Company Inspections and Investigations. In the same month, the Assistant Director of the Division of Corporate Regulation with responsibility for the Commission's functions under the Public
. Must be ordered from the Superintendent of Documents, Government Printing Office, Washington, D.C., 20402.
81 28th Annual Report, p. 164.
Utility Holding Company Act of 1935, was also given responsibility for its functions under Chapter X of the Bankruptcy Act; and a staff unitwas established to assist the Commission in policy planning under the Investment Company Act of 1940.
There was a realignment of functions in the New York Regional Office in August 1962, involving principally the consolidation of enforcement activities under an Assistant Regional Administrator and the appointment of another Assistant Regional Administrator with responsibility for the Commission's functions under Chapter X of the Bankruptcy Act and for the investment company and investment adviser inspection programs.
Subsequent to the end of the fiscal year, certain organizational changes were effected pursuant to recommendations of the Special Study of Securities Markets. A new Office of Program Planning was organized, whose functions have been described on an earlier page. In addition, the Division of Trading and Exchanges was renamed the Division of Trading and Markets, and its functions were realigned. As reconstituted, the Division consists of six units—The Offices of Chief Counsel, Criminal Reference, Enforcement, Regulation, Special Proceedings, and Statistical Studies.
PERSONNEL AND FINANCIAL MANAGEMENT
The recruitment program of the Commission is designed to attract outstanding college and law school graduates for starting professional level positions such as financial analyst, attorney and investigator. The passage of the Federal Salary Reform Act of 1962, helped to alleviate the disparity between the Government and private industry as to starting salaries, and the Commission was successful in appointing to its staff a number of well-qualified applicants.
The average grade level of positions in the Commission as of June 30, 1963, was GS-9.63, compared with GS-8.76 for 1962. This was a relatively small increase, considering the fact that more than 65 percent of the positions are in the professional category and ever-increasing duties and responsibilities are being assigned to the incumbents.
To better acquaint supervisory personnel and other employees with the provisions of the Federal Salary Reform Act of 1962, the Commission's Director of Personnel conducted a series of 10 meetings with employees of the Headquarters Office. Written guidelines for determining the new standard of "acceptable level of competence" for periodic step increases, and for granting within-grade step increases for quality performance were approved by the Commission and published on May 24, 1963.
See pages 126–127, supra.
The Commission continued to supplement its on-the-job training of newly appointed professional employees with more formalized training sessions conducted after office hours. This permitted utilization of senior officials as lecturers or instructors; solved classroom space problems; and enabled work production to continue without interruption. Several of the regional offices conducted instructional sessions for newly employed attorneys and investigators and the Division of Corporate Regulation sponsored one-week sessions on the Investment Company Act of 1940 in the New York, Chicago and San Francisco Regional Offices.
New or revised personnel policy statements were issued dealing with such subjects as appeals from adverse actions, employee management cooperation, equal employment opportunity and position classification. The Office of Personnel also published and distributed to the staff an employee handbook containing information on the personnel policies of the Commission, including its Regulation Governing the Conduct of Members and Employees and Former Members and Employees.
At the Commission's Seventh Annual Service and Merit Awards Ceremony, held in October 1962, the Commission recognized the long service of its career employees by presenting pins to 22 employees with 25 years of Commission service. An additional 62 employees received 20- 15- and 10-year service pins. Length-of-service pins were also awarded to employees for combined Federal service. One employee received a pin for 35 years, 3 employees for 30 years, 11 employees for 25 years, 41 employees for 20 years, 25 employees for 15 years and 39 employees for 10 years. Cash awards totaling $8,955 and certificates of merit were presented to 83 employees. Twenty-four employees were granted additional within-grade increases in recognition of high quality performance.
The Commission is singularly proud of the special recognition which has been accorded certain members of the staff. Mention has already been made of the commendation of Ralph H. Tracy and Allen S. Kilmer, of the Division of Corporation Finance, by the United States District Court for the Southern District of New York, for their participation in the United Dye and Chemical Corporation case.63 In May 1963, Andrew Barr, Chief Accountant of the Commission, was elected to the Accounting Hall of Fame, sponsored by Ohio State University. Elections to the Hall of Fame (there have been 27 since its inception in 1950) are by a Board of Nominations that includes 15 public accountants, 15 educators, and 15 industrial and governmental
* See pages 124-125, supra.
accountants. Bases for election include recognition as an authority in a particular field of practice, advancement of accounting education, public service, contributions to accounting literature, and service to professional organizations. The Accounting Hall of Fame was established "for the purpose of honoring accountants of North America who have made or are making significant contributions to the advancement of accounting since the beginning of the twentieth century." In April 1963, the Washington Chapter of the Federal Government Accountants Association selected Sydney C. Orbach, Chief Accountant of the Division of Corporation Finance, as the recipient of an Outstanding Achievement Award for 1963.
The following comparative table shows the personnel strength of the Commission as of June 30, 1962 and 1963:
June 30, 1963
June 30, 1962
The table on page 153 shows the status of the Commission's budget estimates for the fiscal years 1959 to 1964, from the initial submission to the Bureau of the Budget to final enactment of the annual appropriation.
The Commission is required by law to collect fees for registration of securities issued, qualification of trust indentures, registration of exchanges, and sale of copies of documents filed with the Commission.64
The following table shows the Commission's appropriation, total fees collected, percentage of fees collected to total appropriation, and the net cost to the taxpayers of Commission operations for the fiscal years 1961, 1962 and 1963:
Appropriation Fees collected
Net cost of Commission operations
$6,590, 093 7, 990,097 10, 727, 714
- Principal rates are (1) 1/100 of 1 percent of the maximum aggregate price of securithes proposed to be offered but not less than $25; (2) 1/500 of 1 percent of the aggregate dollar amount of stock transactions. Fees for other services are only nominal.