The forms described below for the making of registration statements have been approved by the Commission and promulgated. Form A-1 is the prototype of the various forms, and the one to be used for the ordinary type of corporate security, to be used also when there is not one especially designed to meet a particular kind of security. The other forms are variants of A-1, with changes, additions, and omissions necessary to meet the circumstances of particular securities. Forms D-1 and D-2 are to be used in the case of reorganizations: D-1 for the registration of certificates of deposit; D-2 for the securities to be issued pursuant to a plan of readjustment or reorganization. Form C-1 is to be used for unincorporated investment trusts not having a board of directors of the fixed or restricted management type. Other forms, to meet other special classes of securities, are being prepared; particularly forms for foreign securities issued by private and governmental agencies. REGISTRATION REQUIREMENTS Before any security may be lawfully sold in interstate commerce or by use of the mails there must be on file with the Commission and in effect a registration statement disclosing full facts regarding the security. This requirement as to registration, however, applies only to securities which are not of the classes specifically exempted, which cannot be enumerated here on account of the limited space. The registration is to be made by means of a form prescribed by the Commission, and must contain the information required by the statute and the Commission's rules and regulations issued thereunder. The statements must be filed in triplicate and must be accompanied by the payment of a minimum fee of $25, or one one hundredth of 1 percent of the maximum aggregate price at which the securities are proposed to be offered. The fee and all other receipts under the act are covered into the Treasury of the United States. Neither registration nor the operation of any other provision of the act involves passing upon the merits of a security or the giving of any governmental guarantee, sanction, or approval thereof. With the exception of any portion of a contract the disclosure of which the Commission determines would impair the value thereof and would not be necessary for the protection of investors, all information filed with the statement is open for public examination at the office of the Commission, and copies may be purchased from the Commission (typewritten copies at 25 cents a page; photostats at 20 cents a page). Material information relating to the security also reaches purchasers through the prospectus which sellers are required to furnish. Unless action is taken by the Commission to the contrary, registration statements become effective 20 days after filing. An earlier effective date exists, however, as to certain foreign securities. If it appears to the Commission that any registration statement is incomplete or inaccurate on its face, the Commission may, before the statement becomes effective and upon notice with opportunity for hearing, refuse to permit the registration statement to become effective until it shall have been amended. (Sec. 8 (b).) If it appears to the Commission at any time (even though the registration statement has already become effective) that the registration includes any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading, the Commission may, after notice and opportunity for hearing, issue a stop order suspending the effectiveness of the registration statement until the same shall have been amended. in accordance with such order. (Sec. 8 (d).) COMMISSION ISSUES FIRST STOP ORDERS UNDER SECURITIES ACT The Commission in August issued its first stop order under the securities act suspending the effectiveness of the registration statement of Speculative Investment Trust, Fort Worth, Tex., until the statement should be amended to comply with the requirements of the act and the Commission's regulations. Second and third stop orders were directed to American Gold Mines Consolidation, Inc., New York, and Industrial Institute, Inc., Jersey City, suspending the effectiveness of their registration statements until amended to comply with the legal requirements. An order was entered refusing to permit the registration statement of Transcontinental Precious Metals Co., Flint, Mich., to become effective until certain missing data were furnished. This order was subsequently lifted and the registration statement allowed to become effective. Clyde H. Creighton, Dallas, Tex., oil and gas promoter, also was directed to supply certain information before his registration statement could be made effective. The Commission also suspended the effectiveness of the registration of Mitchell-Hearst Gold Syndicate, Ltd., of Toronto, Canada, and Southern Crude Corporation, of Los Angeles, Calif., until deficiencies in their statements could be remedied. Registration statements were first admitted to be filed under the act on July 7, 1933, but the requirements that no new issues should be offered to the public unless they had been registered did not become effective until July 27, 1933. Since that date through October 6, 1933, 318 registration statements had been filed with the Commission covering issues aggregating more than $280,000,000. Of the statements filed through October 6, 169 had become effective, 25 had been withdrawn, stop orders were outstanding against 6, while 118 were still pending examination. Though stop or refusal orders have been issued in only 7 cases, the policy of permitting a registrant to withdraw his registration statement and thereby be unable to offer the securities to the public inasmuch as no registration statement is in effect, has been employed in cases where the statement was so inadequately prepared that it would obviously take considerable time for the registrant to meet the requirements of the act. Stop-order proceedings have been employed usually in cases where the registrant disclosed an unwillingness to furnish the required material or to respond promptly to the Commission's suggestions for material that the act insists should be disclosed. |