10704 CONGRESSIONAL RECORD- HOUSE May 19 1961 budget requests 33 additional employees a fee under the securities acts, the over-the­ for the full disclosure program, which also counter brokers and dealers. HOUSE OF REPRESENTATIVES includes proxy statements and annual re­ The Commission has estimated that should ports. the bill have been enacted In fiscal 1960, it THURSDAY, MAY 19, 1960 CIUMINAL VIOLATIONS would Increase the receipt from exchanges I stress another Commission activity of by $1,600,000 and bring in $1 m1111on from The House met at 12 o'clock noon. concern to me. Preliminary and full in­ broker-dealers. This would have increased Rev. Carl E. Blirrows, Trinity Method­ vestigations are necessary to discover civil the percent of fees collected to total obliga­ ist Church, Fort Ashby, W. Va., offered or criminal violations of stock market laws. tions from some 30 percent to 65 percent in the following prayer: It is apparent that accompanying the 12Y:z­ fiscal 1960 and in fiscal 1961, 62 percent. million member family of shareholders are .These estimates do nat consider what The Lord is faithful in all His words, new parasitic swindlers who believe they would be collected if the fees for issuers un­ and gracious in all His deeds. (Psalm have a right to live off this body. Not der the 1933 act were raised. I hope that 145: 13.) only have frauds become more insistent from such an increase would more nearly approxi­ Almighty God, who art wondrous in overseas, but the sophistication of our do­ mate the operating cost of the Commission. To impose higher fees upon the industry power and glory, who stretched forth mestic con men would surprise the most Thy hand and shaped the heavens and ardent fan of Ellery Queen. Warnings of the for the enlarged workload would be unfair the ear~h: We are not worthy of the SEC and the New York Stock Exchange re­ without results on its behalf. Though the mind us that boiler rooms are volatile as fees go into the general Treasury, I pledge least of Thy blessings. Forgive us for never before. myself to obtaining as much of these sums as sinning against Thee and grieving Thy Particularly disquieting to me is the possible returned to the Commission in ap­ spirit. Save us, 0 Lord, from selfishness charge that certain elements of the securi­ propriations. and pride, that we will be enabled to ties industry are being infiltrated by the The bill raising fees for exchanges and im­ serve our fellow man and give glory posing them on broker-dealers was passed organized underworld. In any case, the to Thee. indictment for trial returned April 19 in by the Senate in 1957. Slm.ilar b11ls have been introduced in the 86th Congress. H.R. We give thanks to Thee for the beauty Cleveland against Arthur Tortorello, Stanley of another day, for the blessings of life, Younger, Louis DeFilippo, "Vicky" Leinen 6294 and S. 737. Although the House has alias Linda Lord, Lincoln Securities Corp., never voted on such a bi11, the House Inter­ and for Thy kind providence to the chil­ and others on charges of _criminal violation state and Foreign Commerce Committee an• dren of men. Help us to be more aware o1 Federal securities laws will receive. the nounced hearings on H.R. 6294 for May 3, of Thy revelations to us and le,ad us to close scrutiny of the Senate. since postponed. To my knowledge, there glorify Thee in Christian living. Under its enforcement program the SEC has never been a bill introduced raising the We pray this in the name of Jesus fees under the 1933 act. Although the Sen­ asks for 38 new employees to undertake the Christ, our Lord. Amen. 990 investigations pending at the end of ate Subcommittee on Securities did not have fiscal 1960 and hopes to close 580 during hearings last June on s._737, the exchange and broker fee bill, it will be pending before 1961. THE JOURNAL The workload imposed by new Investment us when the subcommittee holds its execu­ companies staggers the imagination. Since tive sessions. The Journal of the proceedings of 1940, 890 have been registered (378 being It is my expectation, then, that from these yesterday was read and approved. deregistered) , and their increased worth has varied proposals I will be able to confirm entranced their creators, as was Pygmalion, some legislation, "1960." rising !rom $2.5 billion to $20 b1llion. At COMMITrEE ON AGRICULTURE the present rate of inspection, the SEC will · ADJOURNMENT TO MONDAY Mr. POAGE. Mr. Speaker, I ask only be able to inspect 28 companies in 1960, placing the program on a 20-year cycle. Mr. CARLSON. Mr. President, if no unanimous consent that the Committee Despite information submitted by these com­ other Senator desires to address the Sen­ on Agriculture may have until midnight panies for other reasons, such rare inspec­ ate at this time, I move that the Senate tomorrow night to file a report on the tions are absurdly small protection for the stand adjourned, under the previous or­ bill H.R. 12261. _. type of person who invests in mutual funds. der. The SPEAKER. Is there objection to The total number of new positions re­ the request of the gentleman from quested in the Commission's budget for fis- The motion was agreed to; and <at 4 o'clock and 5 minutes p.m.> the Senate Texas? cal 1961 la 92. · There was no objection. INCREASED FEES adjourned, under the previous order, to Though .I am not on the Appropriations Monday, May 23, 1960, at 12 o'clock Committee my concern for SEC budget prob­ meridian. · PUBLIC WORKS APPROPRIATION lems 1s directly related to the topic of this BILL, 1961 speech, "Securities Legislation-1960." That is, I believe in principle that a group which CONFIRMATIONS Mr. CANNON. Mr. Speaker, I ask receives a special benefit or causes a spe­ Executive nominations confirmed by unanimous consent that the Committee cial workload to a Government agency should the Senate May 19, 1960: on Appropriations have until midnight pay as nearly as practical the cost of the Friday to flle a privileged report on the service. COAST AND GEODETIC SURVEY public works appropriation bill for 1961. I am here referring. to the workload im­ The following for permanent appoint­ The SPEAKER. Without objection. it posed by registration statements. The total ments to :the grades indicated 1n the Coast volume of 2,000 statements expected in 1961 is so ordered. and Geodetic Survey, subject to qualifica­ There was no objection. may maintain or prolong the clearance tions provided by law. period to 41 days. Last year, in addition Mr. JENSEN. Mr. Speaker, I reserve to proxy statements, this work utilized about To be lieutenants (junior grade) all points of order on the bill. 80 percent of the time of the Division of Ray M. Sundean Morton K. Meiers The SPEAKER. Without objection, it Corporation Finance. Six years ago, a!ter Lawrence S. Brown Robert M. Davidson 1s so ordered. congressional request, the Commission at­ Karl R. Anderson Ray E. Moses There was no objeetion. tempted to estimate the cost of processing George M. Poor Pat T. Redden such statements under the Securities Act of James A. Ten Eyck Douglas J. Wilcox 1933. If such an approximation can cur­ Gordon N. Orr Frederick A. Ismond MINORI'IY VIEWS ON H.R. 12261 rently be made, it is my proposal to raise the Charles K. Townsend Peter A. Martus fee under section 6(b) of the act to a point Ronald L. Newsom Donald R. Tibbit Mr. HOEVEN. Mr. Speaker, I ask where it may more equitable pay for the Donald W. Moncevicz Charles G. ElUott unanimous consent that the minority cost of issuers' statements. Doyle D. Harper Gerald C. Saladin members of the Committee on Agricul­ Likewise, it must be recognized that ap­ Will Connell Donald C. Mcintosh ture may have until midnight tomorrow plications for registration and inspections Richard L. Hess Michael L. Olivier to file minority views on H.R. 12261. o! exchanges and broker-dealers cause a sub­ To be ensigns The SPEAKER. Without objection, stantial workload to the Commission. Some it is. so ordered. years ago the SEC suggested that section James ColUns William D. O'Ne111 There was no objection. 31 of the Exchange Act of 1934 have in­ William A. Drohan Archibald J. Patrick creased fees charged exchanges, from 2 to Douglas 0. Farrand Wllliam G. Proffitt, Jr. 5 cents. In practice these are passed on to Richard Hull E. Douglas Schwantes, RURAL ._LIFE SUNDAY the customer who benefits from the ex­ Bernard F. Karwisch Jr. change's service and from SEC supervision. Thomas E. KrakowSki Robert H. Seay Mr. HOEVEN. Mr. Speaker, . I ask In addition, the resulting bill would im­ Henry A. Mathis, Jr. Charles D. Strawman unanimous consent to address the House pose for the 1irst time the same fee for .sales George A. Maul R. Lawrence Swanson for 1 minute and to revise and extend upon a group which has never directly paid. Park A. Nelson my remarks. 1960 CONGRESSIONAL RECORD- HOUSE 10705 The SPEAKER. Is there objection This solidarity is essential to our U.S. The SPEAKER. Evidently, no quo­ to the request of the gentleman from defense posture, to our whole strategy. rum is present. Iowa? The key to our containment of commu­ Mr. McCORMACK. Mr. Speaker, I There was no objection. nism is mutuality of effort; we act in move a. call of the House. Mr.