COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS

JOHN SPARKMAN, Alabama, Chairman

WILLIAM PROXMIRE, Wisconsin
HARRISON A. WILLIAMS, JR., New Jersey
THOMAS J. MCINTYRE, New Hampshire
WALTER F. MONDALE, Minnesota
ALAN CRANSTON, California

ADLAI E. STEVENSON III, Illinois

DAVID H. GAMBRELL, Georgia

JOHN TOWER, Texas

WALLACE F. BENNETT, Utah
EDWARD W. BROOKE, Massachusetts
BOB PACKWOOD, Oregon

WILLIAM V. ROTH, JR., Delaware

BILL BROCK, Tennessee

ROBERT TAFT, JR., Ohio

DUDLEY L. O'NEAL, Jr., Staff Director and General Counsel
MICHAEL E. BURNS, Minority Counsel
STEPHEN J. PARADISE, Assistant Counsel

SUBCOMMITTEE ON SECURITIES

HARRISON A. WILLIAMS, JR., New Jersey, Chairman

WILLIAM PROXMIRE, Wisconsin
THOMAS J. MCINTYRE, New Hampshire
WALTER F. MONDALE, Minnesota
ADLAI E. STEVENSON III, Illinois
DAVID H. GAMBRELL, Georgia

EDWARD W. BROOKE, Massachusetts
JOHN G. TOWER, Texas
WALLACE F. BENNETT, Utah
BOB PACKWOOD, Oregon
WILLIAM V. ROTH, JR., Delaware

SECURITIES INDUSTRY STUDY

DAVID L. RATNER, Chief Counsel
ALTON B. HARRIS, Assistant Counsel
THOMAS C. NEWKIRK, Assistant Counsel

KENNETH D. STEPHENS, Assistant Counsel

HAMILTON H. WOOD, Jr., Professional Staff Member

(II)

Charles H. Percy, U.S. Senator from the State of Illinois_

William J. Casey, Chairman, Securities and Exchange Commission; accom-

panied by Commissioners Hugh F. Owens, James J. Needham, A. Sydney

Herlong, and Philip A. Loomis___

Thomas P. Phelan, president, Pacific Coast Stock Exchange; accompanied

by C. J. Delahunty, president, Pacific Coast Stock Exchange Clearing

Corp.

Robert M. Gardiner, Chairman of the Board of Directors, Securities Indus-

try Association; accompanied by Leon T. Kendall, president, Securities

Industry Association; and Roger E. Birk, vice president and director,

operations division, Merrill Lynch, Pierce, Fenner & Smith, Inc------

Eli Weinberg, partner, Lybrand, Ross Bros. & Montgomery__

WEDNESDAY, MAY 10

Richard B. Howland, president, Stock Clearing Corporation and executive

vice president, New York Stock Exchange, Inc__--

John M. Cookenbach, president, Trust Division, American Bankers Asso-

ciation; accompanied by Frank W. Kaestner, senior vice president, Manu-

facturers Hanover Trust Co., New York; chairman, American Bankers

Association Trust Division Corporate Trust Activities Committee; and

William G. Milburn, vice president, Mellon National Bank and Trust Co.,

Pittsburgh

Walter F. Thomas, vice chairman, Manufacturers Hanover Trust Co. on

behalf of New York Clearing House Association; accompanied by John

F. Lee, executive vice president; New York Clearing House Association,

and David G. Gray, counsel, Manufacturers Hanover Trust Co‒‒‒‒‒‒

Thomas W. Stanley, president, Stock Transfer Association, Inc., accom-

panied by Clayton M. Nicholson, vice president, Chemical Bank and the

Stock Transfer Association, Inc.; Edward J. McNamara, assistant

secretary and assistant treasurer, Bethlehem Steel Corp.; Francis T.

Christy, Christy, Frey & Christy; and Robert S. Appel, Christy, Frey &

Christy

Henry Van Dam, president, Corporate Transfer Agents Association, Inc.,

accompanied by Edward J. Brown, vice president and treasurer---

350

THURSDAY, MAY 11

David H. Morgan, president, National Clearing Corp., accompanied by

Lloyd J. Derrickson, vice president and general counsel, National Asso-

ciation of Securities Dealers, Inc---

395

John H. Perkins, vice chairman, Continental Illinois National Bank &
Trust Co. of Chicago, and chairman, National Coordinating Group for
Comprehensive Securities Depositories, accompanied by Joseph P.
Coriaci, second vice president, Continental Illinois National Bank &
Trust Co. of Chicago, and Hamilton F. Potter, Jr., Sullivan & Cromwell-
John M. Meyer, Jr., chairman, Banking and Securities Industry Committee
(BASIC), accompanied by Herman W. Bevis, executive director‒‒‒‒
R. John Cunningham, director of financial services, Arthur Young & Co---
Junius W. Peake, partner, Shields & Co‒‒‒‒

Page

406

408

497

509

ALPHABETICAL LIST OF WITNESSES

Appel, Robert S., Christy, Frey & Christy_

321

Bevis, Herman W., executive director, Banking and Securities Industry

Committee

408

Birk, Roger E., vice president and director, operations division, Merrill

Lynch, Pierce, Fenner & Smith, Inc--

137

Brown, Edward J., vice president and treasurer, Corporate Transfer Agents

Association, Inc.--

350

Casey, William J., Chairman, Securities and Exchange Commission----

Christy, Francis T., Christy, Frey and Christy__

89

321

Cookenbach, John M., president, Trust Division, American Bankers Asso-

ciation

Coriaci, Joseph P., second vice president, Continental Illinois National

Bank and Trust Co. of Chicago--.

Cunningham, R. John director of financial services, Arthur Young & Co__

Delahunty, C. J., president, Pacific Coast Stock Exchange Clearing Corp--

Derrickson, Lloyd J., vice president and general counsel, National Associa-

tion of Securities Dealers, Inc---

Gardiner, Robert M., chairman of the board of directors, Securities Indus-

try Association....

Gray, David C., counsel, Manufacturers Hanover Trust Co-----

298

Herlong, A. Sidney, Commissioner, Securities and Exchange Commission__

Howland, Richard B., president, Stock Clearing Corp.

89

189

Kaestner, Frank W., senior vice president, Manufacturers Hanover Trust

Co., New York_.

277

Kendall, Leon T., president, Securities Industry Association---

137

Lee, John F., executive vice president, New York Clearing House Associ-

ation

289

Loomis, Philip A., Commissioner, Securities and Exchange Commission__

McNamara, Edward J., assistant secretary and assistant treasurer, Bethle-

hem Steel Corp----

89

321

Meyer, John M., Jr., chairman, Banking and Securities Industry Commit-
tee

408

Milburn, William G., vice president, Mellon National Bank and Trust Co.,

Pittsburgh

277

Morgan, David H., president, National Clearing Corp----

395

Needham, James J., Commissioner, Securities and Exchange Commission__
Nicholson, Clayton M., vice president, Chemical Bank and the Stock Trans-
fer Association, Inc---.

89

321

Owens, Hugh F., Comissioner, Securities and Exchange Commission_____

Peake, Junius W., partner, Shields & Co--

89

509

Percy, Charles H., U.S. Senator from the State of Illinois_-.

Perkins, John H., vice chairman, Continental Illinois National Bank and

Trust Co. of Chicago----

64

406

Phelan, Thomas P., president, Pacific Coast Stock Exchange_

Potter, Hamilton F., Jr., Sullivan & Crowell__

115

408

Stanley, Thomas W., president, Stock Transfer Association, Inc---

Thomas, Walter F., vice chairman, Manufacturers Hanover Trust Co----

Van Dam, Henry, president, Corporate Transfer Agents Association, Inc__

Weinberg, Eli, partner, Lybrand, Ross Brothers & Montgomery..

321

298

350

169

Statement of John M. Cookenbach, president, trust division.......

277

American Life Convention and Life Insurance Association of America:

Letter from Robert T. Eckenrode, vice president, operations planning

division

810

Letter to Senator Williams from Paul Kolton, president_.

931

Transfer agent performance, 1972--

Weekly industry condition report__

810

885

586, 599

American Stock Exchange Clearing Corp., letters to members---

Banking and Securities Industry Committee:

Exhibits:

Exhibit A-Letter dated February 23, 1972, from permanent edi-

torial board for the Uniform Commercial Code (U.C.C.) as to the

proposed amendment to the U.C.C_---

Exhibit B-Letter dated February 1, 1972, from Securities Inves-

tor Protection Corporation as to the proposed amendment to

the U.C.C__

Exhibit C-Letter dated January 20, 1972, from the Chairman of

the Securities and Exchange Commission as to the proposed

amendments to the U.C.C. and to the estates, powers and trusts

law

Exhibit D-Memorandum dated February 7, 1972, from the Trust

Division of the American Bankers Association as to the proposed

amendments to the U.C.C. and estates, powers and trust law__

Exhibit E-Letters and enclosure from Securities Industry As-

sociation dated February 11, 1972, as to the legislative changes

necessary to accomplish the concept of user-owned and operated

depositories

Exhibit F-Letter dated February 24, 1972, from American So-

ciety of Corporate Secretaries as to the proposed amendment

to the U.C.C__

Exhibit G-Memorandum dated March 16, 1972, from New York

State Bankers Association as to the proposed amendment to the

U.C.C. and estates, powers and trusts law---

Exhibit H-Report of Ad Hoc Communications Committee dated

March 17, 1972 "Applicability of Electrical Communications

Within a Depository System”.

Exhibit I-Communication dated March 3, 1972, from American

Stock Exchange Clearing Corporation to clearing members as

the CUSIP__

Exhibit J-Communication dated March 7, 1972, from NASD to

to CUSIP..

Exhibit K-Book dated October 1, 1971, prepared by NYSE Stock

Clearing Corporation for clearing members, associate members

and nonmember banks as to CUSIP..

529

530

531

531

532

532

534

535

586

586

610

Exhibit L-Communication dated March 16, 1972, from Midwest

Stock Exchange to its members as to CUSIP.

763

Exhibit M-Communication dated March 30, 1972, from New York

Clearing House as to CUSIP..

776

Exhibit N-December 22, 1971, Final report as to uniform forms

and implementation dates as to their use....

777

Banking and Securities Industry Committee Continued

Exhibits-Continued

Exhibit O-Communication dated February 1, 1972, from NASD
to its members as to uniform forms__.
Exhibit P-Joint communication dated January 27, 1972, from
NYSE and AMEX to their members as to uniform forms___
Exhibit Q-January 13, 1972, memorandum of New York Clear-
ing House as to uniform forms_.

Page

800

800

801

Letter from John M. Meyer, Jr., to Senator Williams..
Letter to the Federal Reserve Board, from John M. Meyer, Jr____
Letter to Chairman Casey of the Securities and Exchange Commis-
sion

902

523

904

Letter to Senator Williams from Mr. Meyer and Mr. Bevis..
Mellon National Bank presentation__-

940

912

Memorandum of changes to S. 3412

958

Outline of possible regulation of depository with Federal Reserve

Boston Clearing House Association, letter to Senator Williams, from

George B. Rockwell, president__

520

Boston Clearing House Banks, position paper_.

517

Boston Stock Exchange Clearing Corporation, statement of position on
S. 2551 and S. 3412----

520

California Legislature, draft of proposed bill_

826

Chicago Daily News, reprint of article_.

834

Comptroller of the Currency, letter from William P. Camp with views on
S. 2551, S. 3297, and S. 3412__.

"Special" Withdrawal of Nominee Stock (COD)-
"Special" Transfer Control Form (W/T TCF).

"Special" Miscellaneous Deliver Order (MDO).