Monthly:

Statistical Bulletin."

Official Summary of Securities Transactions and Holdings of Officers, Directors and Principal Stockholders."

Quarterly:

Financial Report, U.S. Manufacturing Corporations (jointly with the Federal Trade Commission)."

Plant and Equipment Expenditures of U.S. Corporations (jointly with the Department of Commerce).

New Securities Offerings.

Volume and Composition of Individuals' Saving.

Working Capital of U.S. Corporations.

Annually:

Annual Report of the Commission."

Securities Traded on Exchanges under the Securities Exchange Act of 1934. List of Companies Registered under the Investment Company Act of 1940. Classification, Assets and Location of Registered Investment Companies under the 1940 Act.

Corporate Pension Funds.

Directory of Companies Filing Annual Reports."

Other Publications:

Decisions and Reports of the Commission."

Securities and Exchange Commission-Its Functions and Activities.

A Study of Mutual Funds (by The Wharton School)."
Report of Special Study of Securities Markets,"

ORGANIZATION

The Commission's staff consists of attorneys, security analysts, accountants, engineers, investigators and administrative and clerical personnel.

During the fiscal year, certain organizational changes were effected pursuant to recommendations of the Special Study of Securities Markets.

In July 1963, a new Office of Program Planning was established to assist the Commission in reviewing and formulating policy and of coordinating activities in the implementation of the Special Study's recommendations. This work involves, in coordination with other Commission offices and divisions, changes in the rules, regulations and policies of the Commission and self-regulatory agencies; recommendations for legislation; proposals for modifications of industry practices; and procedures for gathering and analyzing economic data about the securities markets.

In October 1963, the Division of Trading and Exchanges was renamed the Division of Trading and Markets, and its functions were

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realigned to implement the recommendation contained in the Report of the Special Study that the Division be so organized and staffed that it might more adequately oversee the operation of the self-regulatory agencies, examine on a continuous basis changing market circumstances and regulatory needs and appraise the adequacies of existing regulatory measures. In addition, the Report recommended that the Division's research activities be expanded so that greater emphasis be given to the compilation, analysis and, where appropriate, publication of data concerning certain aspects and developments in the trading markets. As reconstituted, the Division consists of six units— the Offices of Chief Counsel, Criminal Reference, Enforcement, Regulation, Special Proceedings, and Statistical Studies.

Another change effected during the year involved the transfer of the Section of Machine Tabulation from the Office of the Comptroller to the Office of Records and Service. This change was made in contemplation of the installation of a computer during fiscal year 1965, which is to be operated by the staff of that Section.

PERSONNEL AND FINANCIAL MANAGEMENT

Highlights of the Commission's personnel program in fiscal 1964 included (1) increased activities designed to curb grade escalation, (2) the addition of an important fringe benefit in the form of accident insurance, (3) the conduct of OPERATION SCAN under the incentive awards program, (4) participation in the Federal government's program for hiring mentally retarded persons and (5) the continuation of after-hours training of employees.

In the 6 years from 1958 to 1963, the average grade in the Commission rose from 8.8 to 9.1. This is a 3.4 percent increase as compared with a 12.5 percent increase for all agencies. Similarly, the number of positions in grades GS-13 through GS-18 increased only 10 percent as compared with an increase of 59 percent for all agencies. Although no significant or unwarranted rise in the grades of its positions was found, the Commission instituted measures to control upgradings which could not be fully justified. As of June 30, 1964, the average grade was 9.2.

All employees were offered complete accident insurance coverage at group rates under the Securities Commission Accident Plan (SCAP) adopted in June 1964. This plan is offered as an employee service at no cost to the Commission. Employees pay the total cost of premiums and deal directly with the insurance company or its agent on a private transaction basis. The plan is particularly attractive to employees who perform considerable official travel.

OPERATION SCAN was launched in April 1964 in an all-out effort to spur all Commission employees to propose and devise new ways to improve job performance and to suggest ways to improve methods, reduce costs, increase productivity, and save man-hours. Members of the Commission sent a letter to each employee urging wholehearted participation in the program. Chairman John W. Macy, Jr., of the Civil Service Commission in a letter to the Chairman stated:

...

My congratulations to you and your associates for this imaginative response to the President's call for an intensified effort aimed at encouraging employee ideas for cutting costs and increasing efficiency during this Tenth Anniversary year of the incentive awards program. We plan to bring this program to the attention of other agencies. The Commission was one of the first Federal agencies to employ a qualified mentally retarded person under the special appointing authority approved by the Civil Service Commission. The young man entered on duty as a messenger on February 17, 1964 and he has performed satisfactorily.

Formalized training in the work of the Commission continued to be emphasized by several of the divisions and offices. The Division of Trading and Markets conducted its Third Annual Seminar on Investigative Techniques and Trial Practice in the spring of 1964. Eight after-hour sessions were conducted. A highlight of the Seminar was a mock administrative hearing held in the court room of the United States Court of Military Appeals.

The Commission's General Counsel, Philip A. Loomis, Jr., received a Career Service Award from the National Civil Service League in April 1964. He is the third employee to be accorded this honor. Andrew Barr, Chief Accountant of the Commission, received the 1964 Alpha Kappa Psi Foundation Award. Frederick Moss, Chief, Office of Special Proceedings, Division of Trading and Markets, was a semifinalist for one of 10 Arthur S. Flemming Awards presented annually to outstanding young men in the Federal Service.

During the period April 15, 1963 through June 30, 1964, 130 members of the staff received an additional within-grade salary increase in recognition of high quality performance. These awards are authorized by Section 702 of the Classification Act of 1949, as amended by the Salary Reform Act of 1962.

Cash awards totaling $5,700 and certificates of merit were presented to 48 employees at the Commission's Eighth Annual Service and Merit Awards Ceremony, held in October 1963.

The following comparative table shows the personnel strength of the Commission as of June 30, 1963 and 1964:

The table on page 161 shows the status of the Commission's budget estimates for the fiscal years 1960 to 1965, 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." 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 1962, 1963, and 1964:

46 Principal rates are (1) 100 of 1 percent of the maximum aggregate price of securities proposed to be offered but not less than $25; (2) 100 of 1 percent of the aggregate dollar amount of stock transactions. Fees for other services are only nominal.