HEARINGS

BEFORE THE

COMMITTEE ON BANKING AND CURRENCY
UNITED STATES SENATE

NINETIETH CONGRESS

FIRST SESSION

ON

S. 1659

A BILL TO AMEND THE INVESTMENT COMPANY ACT OF
1940, AS AMENDED, AND THE INVESTMENT ADVISERS
ACT OF 1940, AS AMENDED, TO DEFINE THE EQUITABLE
STANDARDS GOVERNING RELATIONSHIPS BETWEEN IN-
VESTMENT COMPANIES AND THEIR INVESTMENT ADVIS-
ERS AND PRINCIPAL UNDERWRITERS, AND FOR OTHER
PURPOSES

COMMITTEE ON BANKING AND CURRENCY

JOHN SPARKMAN, Alabama, Chairman

WILLIAM PROXMIRE, Wisconsin

WALLACE F. BENNETT, Utah

HARRISON A. WILLIAMS, JR., New Jersey JOHN G. TOWER, Texas

CONTENTS

(The same table of contents appears in both parts 1 and 2)

Manuel F. Cohen, Chairman, Securities and Exchange Commission;

accompanied by Philip A. Loomis, Jr., General Counsel.

TUESDAY, AUGUST 1

Francis S. Williams, chairman, board of governors, Investment Company

Institute; Joseph E. Welch, member, executive committee and chairman

of Federal Legislative Committee; John E. Haire, chairman, SEC rules

committee; Robert L. Augenblick, president, Investment Company

Institute; accompanied by: Robert J. Fahey, Arthur D. Little_Inc.;

Jesse Markham, professor of economics, Princeton University; Ralph

E. Demmler, attorney-

Father Gervase J. Soukup, O.S.B., professor of economics, St. John's

University, Collegeville, Minn.

WEDNESDAY, AUGUST 2

Prof. Paul A. Samuelson, institute professor, Massachusetts Institute of

Technology.

Cornelius Roach, chairman, Association of Mutual Fund Plan Sponsors,

Inc.; accompanied by J. Edward Day, former Postmaster General of

the United States; John D. Case, president, First Investors Corp.;

John H. Kostmayer, vice president, First Investors Corp.; and Raymond

Grant, executive vice president, Investors Planning Corp. of America....

THURSDAY, AUGUST 3

Robert M. Gardiner, chairman, Board of Governors, National Association

of Securities Dealers; accompanied by Robert L. Cody, chairman,

Investment Companies Committee; S. Whitney Bradley, governor-at-

large; Ray Moulden, director, Investment Companies Department;

James Ratzlaff, secretary, Investment Companies Committee; Lloyd

Derrickson, general counsel; and Ralph Burgess, chief economist.

H. Lawrence Bogert, president, Investment Bankers Association; ac-

companied by Donald T. Regan, vice president for governmental rela-

tions; Gordon L. Calvert, executive director and general counsel;

Rucker Agee, member, board of governors; W. Bruce McConnel, Jr.,

chairman, Federal Securities Acts Committee; and Franklin R. Johnson,

chairman, Investment Companies Committee_

James E. Day, president, Midwest Stock Exchange; accompanied by

Scott Davis, chairman of the board; Frank Rothing, senior vice presi-

dent: John G. Weithers, vice president and secretary of the Midwest

Stock Exchange; and Joseph N. Morency, Jr., legal counsel, Midwest

Stock Exchange and partner of the firm of Spray, Price, Hough &

Cushman...

Frederick Moss, president, Boston Stock Exchange.