CONTENTS Page Adler, Paul, specialist and member of New York Stock Exchange, New 6792 Altschul, Frank, chairman committee on stock list, New York Stock 6677, 6700 Babbage, Richard G., attorney at law, representing the Real Estate Bernheim, Alfred L., director of the securities markets survey of the Booker, Y. E., vice president, Washington Stock Exchange, Washington, Butcher, Howard, Jr., vice president, Philadelphia Stock Exchange, 6895, 6936: 6885, 6963 Chinlund, Edwin F., representing the Controllers Institute of America, 7082 Clarke, Evans, executive director, Twentieth Century Fund, New York, Clark, Hon. William, United States judge for the District of New Jersey, Comstock, Louis K., president of the Merchants' Association of New Corcoran, Thomas Gardiner, in office of counsel for Reconstruction Finance 6962 6927 7051 6463, 6506, 6543 Filer, Herbert, dealer in puts and calls, 39 Broadway, New York, N.Y.. Gay, Thomas B., law firm of Hunton, Williams, Anderson, Gay & Moore, 70622 7046 6586 Goldenweiser, E. A., director, division of research and statistics, Federal 6436 Gould, Theodore, member and secretary-treasurer, Baltimore Stock 6736 Grubb, E. Burd, president of the New York Curb Exchange, Summit, N.J.Hoblitzelle, Harrison, president of the General Steel Castings Corporation, Eddystone, Pa. 7097 7173 Hope, Frank R., president, Association of Stock Exchange Firms, New 6899 Houston, George H., vice-president, National Association of Manufacturers, Philadelphia, Pa.. 7241. Johnson, Frederic H., president San Francisco Curb Exchange, San Francisco, Calif. 6826 Johnston, Percy H., chairman of the board and president of the Chemical 7236 Kinnicutt, Herman, member, Investment Bankers Association, New 6860 Legg, John C., Jr., of the firm of Mackubin, Legg & Co., broker-dealers, 6917 Lockwood, William A., counsel for the New York Curb Exchange, East D.C.. Leonard, Franklin, member of the firm of Leonard, Cushman & Suydam, 7005 7123 Marsh, Benjamin C., executive secretary Peoples Lobby, Washington, 7144 Page May, George O., member of Price, Waterhouse & Co., certified public accountants, New York City, Southport, Conn. Moore, Harry H., partner in firm of Hallgarten & Co., New York, N.Y. Newbold, John S., member, firm of W. H. Newbold's Son & Co., Philadelphia, Pa., Jenkintown, Pa 7175 6797 6741 Paul, W. G., secretary of Los Angeles Stock Exchange, Los Angeles, 6768 Potter, William C., chairman of the board, Guaranty Trust Co. of New 7221 Reyburn, Samuel W., president Associated Dry Goods Corporation, New 7023 7032 Rich, George A., secretary and treasurer of the Boston Stock Exchange, Rippel, J. S., of J. S. Rippel & Co., investment securities, Newark, N.J. Sewall, Arthur W., Philadelphia, Pa.. Shaughnessy, Frank C., president San Francisco Stock Exchange, San 7248 7037 7165 6833 Shaw, A. Vere, of A. Vere Shaw & Co., investment counsellors, New York, 7252 Sprague, Raymond, specialist and member of New York Stock Exchange, 6782, 6801, 6803 Stern, Lewis J., partner of Frank B. Cahn & Co., member, New York Stock 6973 Thomas, Woodlief, division of research and statistics, Federal Reserve 6449, 7188 Thompson, Eugene E., president of Associated Stock Exchanges, Washington, D.C. 6979 Troster, Oliver J., member of firm of Hoit, Rose & Troster, New York, 7068 Weicker, Theodore, Jr., member, New York Stock Exchange, New York, Wetsel, A. W., Wetsel Advisory Service, Inc., and J. J. Mitchell, attorney for Wetsel Advisory Service, Inc., New York, N. Y Whitney, Richard, president of the New York Stock Exchange, New York, N.Y 6582, 6600, 6657, 6709, 6779, 6844, 6870, 7211, 7405 Witter, Dean, member, Dean Witter & Co., San Francisco, Calif. 6748 6824 7136 LIST OF STATEMENTS INSERTED McCann, Gene___ Longmire, Russell G., Banker's Building, Chicago, Ill. Knighton, Samuel, president of the New York Produce Exchange, New Gay, Thomas B., counsel, Hunton, Williams, Anderson, Gay & Moore, Beach, Robert B., executive secretary, National Association of Building 7263 7264 6647 7269 7272 Merle-Smith, Van S., 30 Pine Street, New York, N.Y.. May, George O., member of Price, Waterhouse & Co., certified public accountants, New York City, N. Y., Southport, Conn.. 7408 7183 Owens, Robert L., Hon., Washington, D. C. Oliver, Fred N., counsel, National Association of Mutual Savings Banks, 6829 7273 Whitney, Richard, President of the New York Stock Exchange.... 7277 7401-7402 EXHIBITS AND COMMUNICATION'S Richard Whitney, exhibit no. 1, price and earnings index_. Letter to Senator Duncan U. Fletcher from the United Fruit Co______ Page Memorandum submitted by Starkweather & Co-- Letter of D. E. Fritz to Senator Duncan U. Fletcher, Mar. 1, 1934_ Clipping from New York Evening Post- 6889 6890 6891 Letter from S. P. Bope to Senator Duncan U. Fletcher, Mar. 2, 1934_ 6891 6892 Letter from S. L. Bernstein to Senator Duncan U. Fletcher, Feb. 27, 1934. 6892 Michales Haass, letter of.. 6899 Stock value charts and tables. 6957-6962 Chart showing volume of transactions in par value of bonds listed on Exchanges outside of New York City 7003 Letter from the New York Airbrake Co., Feb. 27, 1934, to Hon. Hamilton 7020 Letter to Hon. Duncan U. Fletcher from Garland S. Ferguson, chairman 7089 Appendix no. 1....... 7092 Appendix no. 2. 7093 Communications received by Senate Banking and Currency Committee from the Federal Trade Commission___ Letter to Senator Phillips Lee Goldsborough from the Baltimore Chamber 7203 Letter from J. P. Morgan & Co. to Hon. Duncan U. Fletcher, March 8, 1934---- 7204 Letter from the Swartwout Co., Cleveland Ohio, to Hon. Duncan U. 7204 Criticisms and recommendations of the bill submitted by Mr. Bernard 7205 Letter and memorandum by Judge J. Harry Covington submitted to Committee on Banking and Currency, March 8, 1934 7207 Several volumes of original replies submitted, being answers received from members of the New York Stock Exchange in response to its questionnaire under date of March 3, 1934___ 7213 Compilation for the United Aircraft & Transport Corporation stock. Report of the committee on publicity of the New York Stock Exchange, dated April 21, 1931__. 7213 7214 Minute book of the conference committee of the New York Stock Exchange from June of 1925 to date- 7214 Minute book of the governing committee of the New York Stock Exchange from June 27, 1929, to May 3, 1933 7214 Minute book no. 11 of the governing committee of the New York Stock 7215 Minute book of the committee on business conduct of the New York Reports of the financial condition of the New York Stock Exchange 7215 7215 7215 7216 7216 7216 Financial statement of the New York Stock Exchange Building Co. for 7216 Financial statement of the Stock Clearing Corporation, a subsidiary of the 7217 7217 7217 Financial statement of the New York Quotation Co., and affiliate of the New York Stock Exchange, for the year ended December 31, 1932___. Financial statement of the New York Quotation Co., an affiliate of the New York Stock Exchange, for the year ended December 31, 1933---Financial statement of the New York Stock Exchange Safe Deposit Co., an affiliate of the New York Stock Exchange, for the year ended December 31, 1931 Financial statement of the New York Stock Exchange Safe Deposit Co., an affiliate of the New York Stock Exchange, for the year ended December 31, 1932_. Page 7217 7217 7217 7218 Financial statement of the New York Stock Exchange Safe Deposit Co., an affiliate of the New York Stock Exchange, for the year ended December 31, 1933__ 7218 Report of the trustees of the Gratuity Fund of the New York Stock Exchange for the year ended December 31, 1931.. 7218 Report of the trustees of the Gratuity Fund of the New York Stock Exchange for the year ended December 31, 1932. Report of the trustees of the Gratuity Fund of the New York Stock Exchange for the year ended December 31, 1933--- Letter to the New York Stock Exchange from J. P. Morgan & Co., March 8, 1934__ Letter to Banking and Currency Committee of Senate from Richard Letter to the presidents of all listed corporations from Richard Whitney Answers submitted by New York Stock Exchange to the questions asked of it by counsel for the United States Committee on Banking and Currency___ 7218 7219 7259 7281 7283 7286 7288 Letter dated November 27, 1933, from Charles E. Hudson, president, San Letters from J. R. Edwards & Co. to Senator Duncan U. Fletcher_ 7260-7263 7398 STOCK EXCHANGE PRACTICES MONDAY, FEBRUARY 26, 1934 UNITED STATES SENATE, COMMITTEE ON BANKING AND CURRENCY, Washington, D.C. The committee met at 2:30 p.m., pursuant to call, in room 301 of the Senate Office Building, Senator Duncan U. Fletcher presiding. Present: Senators Fletcher (chairman), Wagner, Barkley, Bulkley, Gore, Costigan, Adams, Carey, and Kean. Present also: Ferdinand Pecora, counsel to the committee; Julius Silver and David Saperstein, associate counsel to the committee, and Frank J. Meehan, chief statistician to the committee. The CHAIRMAN. The committee will come to order. The matter now coming before the committee for consideration is S. 2693, a bill, which if enacted into law will be entitled "National Securities Exchange Act of 1934." These hearings now being begun will continue day after day, except Saturdays and Sundays, until we conclude, and those who wish to be heard, either for or against the bill, will please signify their intention to Mr. Sparkman, the acting clerk of the committee, give their names, and generally if you will, the subject which you wish to discuss. In other words, there is no need of duplicating and repeating over and over again the same arguments and the same views on any particular subject. We want to speed the hearings as rapidly as we can, but we do not wish to deny anyone the opportunity to be heard if he signifies a wish to be heard. Those who are not insistent upon being heard orally may submit papers and the committee will insert such papers in the record as a part of our hearings. I think it proper to begin the hearings with the printing of the bill, and then to have some outline of the bill or explanation regarding certain provisions of the bill made so that the committee will understand fully just what we have before us; and perhaps we should begin with an appropriate reference to the economic background of the proposed legislation, and for that purpose we will first hear from Dr. E. A. Goldenweiser, director of the division of research and statistics, Federal Reserve Board. Now, Dr. Goldenweiser, you may take a seat where you are, opposite the microphone on the committee table, and we will be glad if you will give the members of the committee the benefit of your views regarding the economic background of the bill. I presume you have familiarized yourself with the bill and understand it, and we will now be very glad to hear from you. |