Printed for the use of the Committee on Energy and Commerce 56-727 O U.S. GOVERNMENT PRINTING OFFICE WASHINGTON 1986 KF27 1985i COMMITTEE ON ENERGY AND COMMERCE JOHN D. DINGELL, Michigan, Chairman JAMES H. SCHEUER, New York DOUG WALGREN, Pennsylvania W.J. “BILLY" TAUZIN, Louisiana RON WYDEN, Oregon RALPH M. HALL, Texas BILL RICHARDSON, New Mexico GERRY SIKORSKI, Minnesota JIM BATES. California 120 JAMES T. BROYHILL, North Carolina THOMAS J. BLILEY, JR., Virginia FEDERAL SECURITIES LAWS AND DEFENSE CONTRACTING THURSDAY, FEBRUARY 28, 1985 HOUSE OF REPRESENTATIVES, COMMITTEE ON ENERGY AND COMMERCE, SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS, Washington, DC. The subcommittee met, pursuant to notice, at 10:30 a.m., in room 2123, Rayburn House Office Building, Hon. John D. Dingell (chairman) presiding. Mr. DINGELL. The subcommittee will come to order. We thank all present for being here. The Chair has, before we commence today, a brief opening statement which I will proceed to read. Rules X and XI of the Rules of the House of Representatives assign to this subcommittee responsibility for the Federal securities laws and, therefore, for the Securities and Exchange Commission, and corporations regulated by that body. The committee and its oversight subcommittee are charged with reviewing on a continuing basis the administration of laws to ensure that they are adequate and adequately enforced. A concern which has been growing in the committee has been the stability of our financial markets. And the Chair observes that depends upon the American investor believing in the fundamental values of companies whose securities are traded in those markets. Incomplete, inaccurate, misleading information, or information available only to insiders destroys the investor confidence and ultimately the effectiveness of the capital markets of this Nation. Investor confidence depends upon accurate and timely information, honest corporate management and a stock market that is fair and is not rigged. The subject of today's hearing is the General Dynamics Corp., a company whose securities are listed and traded on the New York Stock Exchanges and various regional stock exchanges, and which is subject to the reporting requirements of the Securities and Exchange Commission. For some time, a number of allegations have been coming to the fore involving the company and Federal security laws, and these have been circulating rather widely. About 1 year ago, this subcommittee began looking at these allegations. Since that time, the subcommittee has received documents, obtained tape recordings, interviewed witnesses, and reviewed investigations conducted by the SEC, the Department of Justice, and the Navy Department into various aspects of the company's activi (1) |