OF 1933 AND TO THE SECURITIES H. R. 4344, H. R. 5065, and H. R. 5832 BILLS RELATING TO PROPOSED AMENDMENTS Printed for the use of the Committee on Interstate and Foreign Commerce Mis Ast CONTENTS 1027, 1052, 1054, 1108, 1122, 1239, 1254, 1261, 1264, 1292 Fleek, John S., president, Investment Bankers Association of America, Parry, Carl E., Chief, Division of Security Loans, Board of Governors, Federal Reserve System, Washington, D. C.--- Davis, Howland S., executive vice president, New York Stock Ex- Stott, Robert L., chairman, Board of Governors, New York Stock Stewart R. McLean, chairman Securities Acts Committee, Invest- ment Bankers Association, New York, N. Y.... Brown, A. S., president, Brown's Letters Inc., New York City. Jones, Frayser, chairman, subcommittee on Industrial Financing of Rosenberry, S. L., Esq., counsel, New York Stock Exchange_ Rea, George, president, New York Curb Exchange_-_ Truslow, Francis Adams, counsel, New York Curb Exchange... 1160, 1296 Chase, Edward E., representing the Maine Dealers' Committee, Rule, Gordon, representing Covington, Burling & Ruble, counsel for American Institute of Accountants, Washington, D. C.. Haskell, Lt. Col. John, vice president, New York Stock Exchange. Torrey, Clare Morse, general partner of Cohu & Torrey, New York Schram, Emil, president, New York Stock Exchange... Wiggins, A. L. M., chairman of Committee on Federal Legislation of the American Bankers Association, Washington, D. C.. Brown, G. G., president, Federal Advisory Council, Chicago, Ill.. Thill, Hon. Lewis D., Member of Congress from State of Wisconsin.. Jones, Frayser, chairman, subcommittee on industrial financing of National Association of Manufacturers, New York City (with en- Joint statement by Securities and Exchange Commission and by the representatives of the securities industry on simplification of regis- tration procedures under the 1934 act.. Table of statistics regarding four public utilities issues past 3 years_- Wyeth, Harry B., Jr., supplementary statement submitted by Table showing volume of transactions on the New York Stock Ex- change in reverse chronology 1941 to 1914.. Joint statement by Securities and Exchange Commission and the representatives of the securities industry on miscellaneous changes PROPOSALS FOR AMENDENTS TO SECURITIES ACT OF 1933 AND THE SECURITIES EXCHANGE ACT OF 1934 TUESDAY, JANUARY 20, 1942 HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Washington, D. O. The committee met, pursuant to call, at 10 a. m., in the committee room, New House Office Building, Hon. Clarence F. Lea (chairman) presiding. The CHAIRMAN. The committee will come to order. Mr. Paddock would like to ask a few question of Mr. Purcell in reference to the Securities Act. So, we will take that up before proceeding with the regular program. Mr. Paddock. STATEMENT OF COMMISSIONER GANSON PURCELL, SECURITIES AND EXCHANGE COMMISSION REGISTRATION OF EMPLOYEE PLANS Mr. PADDOCK. Mr. Purcell, the supplemental memorandum which you filed after your previous testimony states that where you feel employees' funds come under the Securities Act, the trust itself, if the fund is trusteed, is the issuer or seller of a security. Does this mean that in your opinion the employing company is in no way subject to the provisions of the act? Commissioner PURCELL. The employing company? Mr. PADDOCK. The corporation for whose employees the fund is created; the corporation. Commissioner PURCELL. That the company which sets up the plan for its employees is in no way subject to the act? Mr. PADDOCK. That is the question. Commissioner PURCELL. Your question is with respect to the plan? Mr. PADDOCK. With respect to the plan. Commissioner PURCELL. That is not universally the case. In some cases such as the Sears, Roebuck plan, for instance, the company would be required to register, as well as the trust. In that type of plan, the employees are investing in the company itself through purchase of securities in the plan. The employer's stock is the sole medium of investment in the Sears, Roebuck case and, that being the fact, the employees are being asked to invest in the company's securities, at least indirectly, through the plan. Registration is required, not only of the plan, but of the company as well. That is not true in those cases where there is not that type of investment in the company's securities. |