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SEPTEMBER 14, 16, AND 27, 1971

Serial No. 92-37a

Printed for the use of the Committee on Interstate and Foreign Commerce

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 - Price $2.50

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757

Savoie, Leonard M., Executive Vice President, American Institute of

Certified Public Accountants...

Stock, Fred J., Jr., Assistant Vice President, New York Stock Ex-
change, Inc., Member Firms Department----

Prepared statement submitted by-

780, 876

S. Leland Dill, with attachments and charts..

999

Edwin P. Fisher, with statistical tables and charts--
Harry V. Keefe, Jr., with attachments and charts.

828

1039

Merrill Lynch, Pierce, Fenner & Smith, Inc., with attachments and
charts..

836

National Association of Securities Dealers, Inc., with statistical tables
and exhibits_.

760

New York Stock Exchange, Inc., with statistical tables, charts, and
exhibits, including: Conduct of Accounts (rules and policies ad-
ministered by the Department of Member Firms).

781

Panelists of the New York Stock Exchange, including exhibits on
Rules 417, 418, 419...

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Additional material submitted for the record by

American Institute of Certified Public Accountants: Letter dated
August 12, 1970, setting forth thoughts on the net capital rule_ _ _ _
Arthur Andersen & Co.: Letter dated April 8, 1970, to George Belia-
kow, Assistant Chief Examiner, NYSE, Department of Member
Firms, advising that they have been selected to perform an audit
on Robinson & Co., Inc..

Lee D. Arning, Senior Vice President, NYSE: Letter dated October 8,
1971, to Hon. John E. Moss, expressing exchange's views with re-
spect to Mr. Collins' comments and recommendations__
Board of Governors of the Federal Reserve System: Letter dated
July 30, 1971, to Chairman Casey re required reserves against credit
balances at broker-dealers, with attachments and tables...
Bureau of National Affairs Securities Regulations and Law Report:
Publication dated September 1, 1971, hypothetical computation
based on the NYSE's net capital rule and Commission's net capital
rule, showing identical set of facts, with table--
John J. Cerwinski: Letter dated May 11, 1970, to Robinson & Co.,
Inc., expressing concern relating to substantial losses in their net
capital_

Page

879

900

893

923

877

899

Donald M. Collins, Receiver, Robinson & Co., Inc.: Two letters addressed to Hon. John E. Moss; setting forth his experience as receiver of Robinson Co., with attachments and tables; the other commenting on a letter from the NYSE dated October 8, 1971 882, 900 Robert W. Haack, President, New York Stock Exchange; Paul Kolton, President, American Stock Exchange..

1062

Merrill Lynch, Pierce, Fenner & Smith, Inc.: Replica of form showing a
margin account agreement used by Merrill Lynch...
New York Stock Exchange, Inc.:

961

Chronology of the New York Stock Exchange, capital treatment
for short security differences.

862

Form letter selecting one member to conduct an audit_.

900

Joint letter with the American Stock Exchange, dated June 15,
1971, to Chairman Casey, SEC, regarding customers' free credit
balances, with attachments, exhibits, and charts.
Joint letter with American Stock Exchange, dated July 9, 1971,
to Chairman Casey, SEC, analyzing free credit balances, with
attachments and tables..

938

956

Secured Demand Note-Form 13, Annex I..

855

J. Charles Partee, Federal Reserve System: Letter dated November 2,
1971, to Harvey A. Rowen, Counsel, Securities Markets Study,
Subcommittee on Commerce and Finance, making comments on
NYSE proposal re segregation and reserves..

Felix G. Rohatyn: Letter dated November 1, 1971, re views with
respect to rotation of auditors___.

Securities and Exchange Commission: Chronology of events involving short stock record differences..

Subcommittee on Commerce and Finance: Letters dated September 24, 1971, by Harvey A. Rowen, Counsel, Securities Markets Study, requesting cooperation of the following panelists in answering questions submitted in writing by the staff:

824

1080

862

Edward R. Gilleran, Vice President, Regulation, NASD-
Irving M. Pollack, Director, Division of Trading and Markets,
SEC.

969

967

Fred J. Stock, Jr., Assistant Vice President, NYSE, Department
of Member Firms__

965

Replies to the letters of September 24, 1971, submitted by:
Edward R. Gilleran, with attachments-

970

Irving M. Pollack_

991

Fred J. Stock, Jr., with attachments, tables, and charts

974

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