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TABLE 23.-Cases in which the Commission participated as intervenor or as amicus curiae, pending during the fiscal year ended June 30, 1963

Name of case

U.S. District Court,
Court of Appeals, or
U.S. Supreme Court

Date of entry

Nature and status of case

American Trailer Rentals Colorado.

Mar, 22, 1963 | Petition for leave to intervene in proceedings for an arrangement under Chapter XI of the Bankruptcy
Co., In re.

Act to show violations of Section 17(a) of the 1933 Act, filed. Referee in Bankruptcy entered order
dismissing intervention of Commission, and Commission has petitioned district court to review,

Pending.
Bellanca Corp. v. Sydney L. | Northern District of Feb. 21, 1961 Action under Sec. 20(C) and 10(b) of the 1934 Act and Rule 10b-5 thereunder alleging that the plaintiff
Albert, et al.
Ohio.

was fraudulently induced by Albert to transfer its stock or other assets in connection with transactions
whereby Bellanca acquired assets of other companies and that Albert hindered the filing of reports
required by the Act. The defendant-directors of Bellanca aided and abetted the fraud on the corpora-
tion by authorizing, acquiescing in or ratifying Albert's actions in connection with these transactions.
Commission's memorandum Mar. 6, 1961, as amicus curiae in opposition to motion to dismiss the

complaint served. Pending.
Blau, Isadore v. Edward 2d Circuit.

Jan. 1963 This is an action under Sec. 16(b) of the 1934 Act seeking recovery of "short swing" profits. Brief of
Lamb, et al.

SEC amicus curiae filed in support of a reversal of judgment of the district court. Opinion rendered
reversing the decision of district court, Mar. 8, 1963. Petition for writ of certiorari filed May 13, 1963.

Pending.
Borak, Carl H. v. J. I. Case 7th Circuit..

Jan. 4, 1963 The above action was brought by a stockholder of J. I. Case Co., alleging that the merger between said
Co.

company and American Tractor Corp. followed false and misleading proxy solicitation in violation of
Sec. 14(a) of 1934 Act, and that the market price of American Tractor stock at the time of the merger was
artificially high as a result of a series of manipulative practices in violation of Sec. 10(b). Brief of SEC
amicus curiae filed Jan. 4, 1963. Opinion rendered reversing order dismissing plaintiff's third amended

complaint and remanding case to lower court. Pending.
Fuller, Stephen D. et al., v. Southern District of Dec. 6, 1962 Private action seeking a judgment declaring a contract for the sale of certain stock to be void and un-
Arthur Dilbert, et al. New York.

enforceable under Secs 5 and 14 of the 1933 Act and Sec. 16(e) of the 1934 Act. Motion by defendant for
summary judgment. Commission was requested to file memorandum amicus curiae on the Federal
securities law issues raised by the motion. Memorandum of Commission amicus curiae filed Dec. 6, 1962.

Opinion rendered Dec. 19, 1962, denying summary judgment. Closed.
Gluck, Maxwell H. Southern District of June 25, 1963 | Ths is an action in which the SEC appears as amicus curiae in support of the complaint filed by plaintiff
Shearson, Hammill &
California.

seeking to secure a precedent to investors in construing and enforcing Sec. 10(b). Motion by SEC for
Company.

leave to paticipate as amicus curiae filed June 25, 1963. Pending.
Honigman, Edith v. Green District of Minnesota. Feb. 20, 1961 Shareholder class action under Sec. 10(b) of the 1934 Act and Sec. 12 (2) and 17(a) of the 1933 Act in which
Giant Co., et al.

Plaintiff demands recovery. Commission moved to participate as amicus. Commission memorandum
Mar. 10, 1961, amicus curiae served. Memorandum decision entered finding no basis for complaint filed
by plaintiff. Ordered on Oct. 20, 1961, that judgment be entered for defendants. District Court de-
cision affirmed on appeal and petition for writ of certiorari denied Mar. 18, 1963. The Commission did
not participate in the court of appeals and supreme court actions because no issues under securities laws
were involved. Closed.

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An action based upon alleged violations of Sec. 16(b) of the 1934 Act in which recovery is sought of profits

realized by an "insider" through "short swing transactions in securities. Memorandum of Commission amicus curiae served Dec. 8, 1962. Opinion rendered granting defendants' motion for summary

judgment. Appeal filed May 22, 1963. Pending.
Action in which Chancellor Seitz decided that the Keystone Funds' principal underwriting contract was

void under Sec. 47(b) of the Investment Company Act of 1910, because it had extended over a longer
period than is permitted under Sec. 15(b) of that Act. Motion filed by Commission for amicus curiae

participation on Mar. 30, 1952. Order Apr. 25, 1952, appointing Commission an amicus curiae. Pend-
Action under Sec. 10 of the 1934 Act as implemented by Rule 105-5. Commission's brief Mar. 28, 1961,

amicus curiae served. Briefs and reply briefs filed. Commission's reply brief May 20, 1961, filed
Order June 15, 1961, directing the case be heard en banc. Judgment entered on Mar. 14, 1962, aflirming
order of district court. Petition for writ of certiorari filed, May 14, 1962, and denied Oct. 8, 1962.

Closed.
Action in which the Commission appears as amicus curiae to insure the

right and duty of registered stock
exchanges to discipline their members for violations of the Securities Exchange Act of 1934. Memoran-
dum of the Commission amicus curiae filed Dec. 24, 1961. Opinion of CA-2 reversing judgment of
district court granting plaintiff's motion for summary judgment Apr. 4, 1962. Petition for writ
certiorari filed May 31, 1962, from the order of Apr. 4, 1962. Memorandum of the United States amicus
curiae in support of the petition for a writ of certiorari filed Nov. 1962. Writ of certiorari granted Oct.
8, 1962. Brief for the United States amicus curiae filed Jan. 14, 1963. Opinion of Supreme Court revers-

ing judgment of Court of Appeals and remanding cause May 20, 1963. Pending.
An action based upon alleged violations of Sec. 16(b) and (c) of the 1934 Act in which recovery is sought of

"short swing' profits. Memorandum of the Commission amicus curiae served Nov. 27, 1961. Opinion
and orders denying plaintiff's motion for summary judgment and granting defendant's motion for sum-
mary judgment Dec. 27, 1961. Notice of appeal filed from this order Jan. 9, 1962. Brief for Securities
and Exchange Commission amicus curiae filed Mar. 23, 1962. Decision rendered affirming the order

of the district court entered Dec. 27, 1961. Closed.
This is an action in which the Commission appears as amicus euriae to set forth its disagreement with certain

arguments respecting the interpretation of the Investment Company Act of 1940. Appeals filed Apr. 9,
1962, by plaintiffs-appellants from the order of the district court seeking reversal of the denial of money
damages, and by respondents from the order seeking reversal of injunctive order and award of attorney's
fees. Brief of the Commission amicus curiae filed May 15, 1962. Opinion rendered Jan. 25, 1963,
affirming judgment of district court. Closed.
This action is one brought by the plaintiffs derivately and representatively as stockholders of Investors
Mutual, Inc., a registered Investment Company, to enjoin the performance of the investment advisory
and underwriting distribution contracts heretofore entered into between the defendants, Investors
Diversified Services, Inc., and Investors Mutual, Inc. Motion of Commission for leave to participate
amicus curiae filed Apr. 20, 1962. Brief filed May 2, 1962. Decision by CA-2 affirming the order of the
district court. Petition for rehearing filed June 1, 1962, and denied June 7, 1962. Pending.

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Table 24.Proceedings under the Bankruptcy Act pending during the fiscal year

ended June 30, 1963, in which the Commission participated when district court orders were challenged in appellate courts

Name of case and U.S. Court of

Appeals

Nature and status of case

American Trailer Rentals Co., Notice of appeal filed by SEC from the order entered May 20, 1963. debtor; In Re Securities and Ex denying the motion of SEC to dismiss the debtor's petition for change Commission, appellants relief under Chapter XI of the Bankruptcy Act on the ground that (10th Circuit).

any proceeding for the rehabilitation of the debtor under the Bankruptcy Act should have been brought under Chapter X of that Act.

Pending. Colorado Trust Deed Funds, Inc., Notice of appeal filed by Colorado Trust Deed Funds, Inc., from an

appellant v. James Thomas, III, order entered Nov. 6, 1961, dismissing its petition for reorganization Boyd Thomas and Securities and under Chapter X of the Bankruptcy Act. Briefs filed and hearing Exchange Commission, appellees set for July

27, 1962. Opinion

rendered Nov. 19, 1962, affirming the (10th Circuit).

judgment of the district court. Closed. Crumpton Builders, Inc., debtor; Notice of appeal filed by SEC from that portion of the order entered

In Re Securities and Exchange May 14, 1963, denying the motion of SEC to dismiss the proceedings Commission appellants (5th Cir under Chapter XI of the Bankruptcy Act. Pending. cuit). Flora Sun Corp., debtor; (Francis Appeal from order of Apr. 25, 1962, approving a petition for reorgani. J. Corr & Dorothy J. Corr) ap zation under Chapter X of the Bankruptcy Act. Commission filed pellants (CA-5).

a brief. Court of appeals decision handed down affirming the district court's order approving the petition for reorganization.

Closed. Florida Southern Corp., debtor; Appeal filed by W. D. York, for reversal of district court order entered W. D. York, appellant (5th Cir July 9, 1962, finding that the debtor's petition for reorganization was cuit) USSC.

filed in good faith. Order of CA-5 entered Nov. 28, 1962, affirming the order of the district court. Petition for rehearing filled and denied Dec. 27, 1962. Petition for writ of certiorari filed Feb. 7. 1963. Brief for SEC in opposition Mar. 1963. Certiorari denied by

supreme court. Closed. GFE Industries, Inc., debtor; Les-Notice of appeal filed by Lester M. Entin and Joseph Waters dba

ter M. Entin & Joseph Waters, Lester M. Entin Associates, from the “Order Authorizing Sale" dba Lester M. Entin Associates, entered Mar. 1, 1963 and from the "Recommended Order Authorizappellants y. John C. Stevens, ing Sale of Private Brands and Order Granting Stay" filed Dec. 17, Trustee and Securities and Ex 1962, and from the "Order Authorizing Sale of Private Brands change Commission.

Division of Debtor" entered Mar. 4, 1963. Pending. Grayson-Robinson Stores, Inc., This appeal involves the question whether a proceeding for an arrange

debtor; Securities and Exchange ment with its creditors by Grayson-Robinson Stores, Inc., pursuant Commission, appellants (2d Cir. to Chapter XI of the Bankruptcy Act should be dismissed on the cuit).

ground that any proceeding for the rehabilitation of the debtor under the Bankruptcy Act should have been brought under Chapter X of that Act. Opinion rendered affirming district court's

denial of motion. Petition for rehearing denied, Closed. Inland Gas Corporation, et al., Appeal from order of Apr. 8, 1961, limiting the recovery of expenses debtors; Green Committee, et al., by the Green Committee. Brief and appendix of appellee filled appellants (6th Circuit).

Nov. 2, 1961. Brief of the Commission filed Nov. 1961. Oral argument held Mar. 26, 1962. Decision rendered Oct. 1962, affirm

ing the judgment of the district court. Closed. Los Angeles Trust Deed & Mort- Notice of appeal filed by Commission from order of the district court

gage Exchange, debtor; Se. denying motion to dismiss Chapter XI proceedings under an curities and Exchange Commis amended petition to comply with provisions of Chapter X. Appeal sion, appellants (9th Circuit). dismissed. Closed. Muskegon Motor Specialties Co., This action arises out of a question whether or not the district court

debtor; International Union, has discretion to refuse to compel the Trustee of a corporation in United Automobile, Aircraft and reorganization under Chapter X of the Bankruptcy Act to submit Agricultural Implement Workers to arbitration a claim for vacation pay arising out of a previously of America, AFL-CIO, and its expired collective bargaining agreement with a defunct subdivision local 1272, Voluntary Unincor of the debtor corporation. Petition for writ of certiorari filled May porated Associations, appellants 27, 1963. Pending.

(6th Circuit). Scranton Corporation & Hal Roach Appeal filed Mar. 9, 1962, from order of court approving sale of assets Studios, debtors; State of Cali of Hal Roach Studios pursuant to Sec. 116(3) of Chapter X proceed. fornia, appellant (3d Circuit). ings. Stipulation dated Sept. 5, 1962, dismissing appeal since the

matter is moot. Closed. Selected Investments Corp., Appeal from order of the district court denying appellant's compen

debtor; B. H. Carey, appellant sation for legal services and reimbursement of expenses as Attorney (10th Circuit).

for debtor. Motion for dismissal of appeal fled by appellant due to satisfactory settlement negotiations. Commission's objections filed Nov. 1, 1981. Order Nov. 20, 1961, remanding case to District Court. Order entered by the district court on June 4, 1962, reaffirming prior order denying compensation to appellant. Appeal on the merits. Court of Appeals affirmed district court's

opinion, May 23, 1963. Olosed. TMT Trailer Ferry, Inc., debtor; Appeal fled July 11, 1962, by the Protective Committee for Inde. The Protective Committee for pendent Stockholders of TMT Trailer Ferry, Inc., from “Opinion Independent stockholders of and Order on Valuation and Insolvency" of the Hon. Emett O. TMT Trailer Ferry, Inc., appel Choate. Appeal taken by Committee from the order confirming lant v. C. Gordon Anderson as the plan of reorganization entered Feb. 14, 1963. Pending. Trustee, appellee (CA-5).

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TABLE 24.—Proceedings under the Bankruptcy Act pending during the fiscal year

ended June 30, 1963, in which the Commission participated when district court orders were challenged in appellate courts-Continued

Name of case and U.S. Court of

Appeals

Nature and status of case

United Star Companies, Inc., et al., | Notice of appeal filed by Commission from that portion of the order

debtors-appellees; In Re Securi. entered on Mar. 22, 1963 denying the motion of the SEC to dismiss ties and Exchange Commission, the proceedings under Chapter XI of the Bankruptcy Act. appellants (5th Circuit).

Pending. Waloc Building Corp., debtor; Appeal filed from the order of the district court entered Feb. 8, 1963,

Hortense Mayer Hirsch, et al., enjoining appellants from "proceeding or continuing in any manner appellants v. Nathan Yorke. with their state action. Commission filed a memorandum in Trustee, et al., appellees (7th support of the motion of certain bondholders to dismiss the appeal Circuit).

May 27, 1963. Pending.

TABLE 25.-A 30-year summary of criminal cases developed by the Commission

fiscal years 1934–1963
(See table 26 for classification of defendants as broker-dealers, etc.)

Fiscal year

Number Number

Number
Number of persons of such

of these
of cases
as to cases in Number

defend. Number referred whom which of de Number Number ants as to of these

to De prosecu indict fendants of these of these whom defendpartment tion was ments indicted defend defend- proceed- ants as to of Justice recom

were in such ants con- ants ac- ings were whom in each mended obtained

cases 1

victed quitted dismissed cases are year in each by U.S.

on motion pending 2 year attorneys

of U.S. attorneys

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1 The number of defendants in a case is sometimes increased by the Department of Justice over the number against whom prosecution was recommended by the Commission. Also more than 1 indictment may result from a single reference.

? See table 13 for breakdown of pending cases. * 32 of these references as to 118 proposed defendants were still being processed by the Department of Justice as of the close of the fiscal year, and also 19 of the prior years references as to 88 proposed

defendants. 1678 of these cases have been completed as to 1 or more defendants. Convictions have been obtained in 572 or 85 percent of such cases. Only 107, or 16 percent. of such cases have resulted in acquittals or dismissals as to all defendants,

this includes numerous cases in which indictments were dismissed without trial because of the death of defendants or for other administrative reasons. See note 5. infra.

Includes 73 defendants who died after indictment.

TABLE 26.- A 30-year summary classifying all defendants in criminal cases

developed by the Commission-1934 to June 30, 1963

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1 Includes persons registered at or prior to time of indictment.

· The persons referred to in this column, while not engaged in a general business in securities, were almost without exception prosecuted for violations of law involving securities transactions,

TABLE 27.-A 30-year summary of all injunction cases instituted by the Com

mission1934 to June 30, 1963, by calendar year

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1934. 1935. 1936. 1937 1938. 1939. 1940. 1941. 1942. 1943. 1944. 1945. 1946. 1917 1948. 1949. 1950. 1951 1952 1953. 1954. 1955 1956. 1957. 1958. 1959 1960. 1961 1962 1963 (to June 30).

Total.

20
18

21 15 20 15 24 26 17

67 103 41 59 54 122 192 408 206 270 368 403 205

23 22 19 42 32 51 71

71 58 99 84 99 58

158 179 222 272

225

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