COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

HARLEY O. STAGGERS, West Virginia, Chairman

Hearings held on

October 18.

T

October 19. October 20_ October 26. October 27. November 16. November 17. Statements of—

(The same table of contents appears in parts 3, 4, and 5)

PART 3

Morgan, David
NASD..
Needham, James J.,

Bevis, Herman W., Executive Director, Banking and Securities Industry Committee.. 1318, 1413, 1490 Casey, Hon. William J., Chairman, Securities and Exchange Commission__

1712

Celler, Hon. Emanuel, a Representative in Congress from the State of
New York..

1639

1728

Delahunty, Christopher J., President, Pacific Coast Stock Exchange Clearing Corporation____ 1352, 1413, 1490 Du Pont, Henry W., Chairman of the Board and President, SCI-TEK, Incorporated. 1380, 1413, 1490 Haack, Robert W., President, New York Stock Exchange, Inc., accompanied by Donald L. Calvin, Vice President_ Howland, Richard B., President, Stock Clearing Corporation, New York Stock Exchange, Inc.-1325, 1413, 1490 Kaestner, Frank W., Senior Vice President, Manufacturers Hanover Trust Company1368, 1413, 1490 Loeffler, Robert M., Senior Vice President-Law, Investors Diversified Services, Inc.; accompanied by Richard M. Phillips, Esq., of Hill, Christopher & Phillips, Special Counsel to IDS.. Loomis, Hon. Philip A., Jr., Commissioner, Securities and Exchange Commission_.

Page

1315

1413

1489

1537

1613

1639

1711

Macklin, Gordon S., President, National Association of Securities Dealers, Inc., accompanied by Lloyd J. Derrickson, Vice President and General Counsel...

1739

Maller, Robert R., Senior Vice President, United States Trust
Company of New York..
Montross, Phillips M., President, Midwest Stock Exchange Clearing
Corporation..
1343, 1413, 1490

1555, 1613

H., President, National Clearing Corporation,
1362, 1413, 1490

Commissioner, Securities and Exchange

1316

1548, 1613

O'Connor, Bernard, Vice President and General Manager, United

States Banknote Corporation__

Commission_.

Noyes, Clifford H., Regional Vice President, North American Rockwell
Information Systems Company-

1669

1712

1561, 1613

Peake, Junius W., General Partner, Shields & Company. 1373, 1413, 1490 Pollack, Irving M., Director, Division of Trading and

1712

Markets,
Securities and Exchange Commission__-
Reinisch, Hans Randolph, President, National Shareholders Asso-
ciation, New York...

1685

Schapiro, Morris A., President, M. A. Schapiro & Co., Inc.; accompanied by George D. Reycraft, Esq., and Thomas A, Russo, Esq., of Cadwalder, Wickersham & Taft..

1652

Sporkin, Stanley, Associate Director, Division of Trading and Markets,
Securities and Exchange Commission..
1413, 1490, 1538, 1613
Weinberg, Eli, Partner, Lybrand, Ross Bros. & Montgomery Co.-- 1540, 1613

Noyes, Clifford H..

1549

O'Connor, Bernard, to include an article; illustrations; a speech by

Fred R. Esty, Chairman of the Board, United States Banknote
Corporation; and releases...

1561

Peake, Junius W..

1377

Reinisch, Hans Randolph, to include article and attachments with illustrations__.

1696

List of all members and top staff, including their places of residence
and business addresses_

1496

Banking and Securities Industry Committee (BASIC):

List of all members and top staff, including their places of residence
and business addresses. -

1494

Notes submitted by Herman W. Bevis on his study of the German, French, and of Morgan Guaranty's Euro-Clear depository-.. Calvert, Gordon L., Investment Bankers Association of America: Letter dated October 6, 1971, urging prompt enactment of legislation abolishing stock certificate for use in interstate commerce.. Celler, Hon! Emanuel: Letter dated November 12, 1971, to Richard W. McLaren, re concern of antitrust implications of the New York Stock Exchange-

1509

1580

1646

Ernst, Martin L., Vice President, Arthur D. Little, Inc.: Letter dated October 15, 1971, elaborating on industry's automation problems.. 1577 Federal Bar Journal: Article entitled "The Status of Regulatory Independence," by A. Everette MacIntyre

1811

McLaren, Richard W.: Letter dated November 19, 1971, in reply
to letter of November 12, 1971, from Hon. Emanuel Celler...
McNeill, Charles R.: Letter dated November 16, 1971, clarifying
misunderstanding of testimony of October 18, 19, and 20.
National Association of Securities Dealers, Inc. (NASD):

Letter dated July 22, 1971, from Gordon S. Macklin, in reply
to the NYSE letter of July 8, 1971

1650

1524

1426

List of all members and top staff including their places of residence
and business addresses_

1498

Letter dated November 18, 1971, submitting views in planning a
clearing facility in New York...

1531

National Clearing Corporation: List of all members and top staff,
including their places of residence and business addresses..
New York Stock Exchange:

1499

Letter dated July 8, 1971, setting forth NYSE thoughts on the
forthcoming introduction of a continuous net settlement system
in New York...

1424

Letter dated October 22, 1971, setting forth a listing of the names,
business addresses, home addresses of the governors, president,
etc. of the exchange - -

1494

Material relating to the incorporation of the New York Stock
Exchange

1755

Nicholson, Clayton M., Vice President of the Stock Transfer Associa-
tion, Inc.: Letter dated November 19, 1971, explaining action taken
by his organization in the problems of the securities industry-
O'Connor, Bernard, article entitled "Optical Speed Reading".
Peat, Marwick, Mitchell & Co.: Letter dated June 21, 1971, re material
submitted pertaining to various proposals for dealing with security
certificate..

Perkins, John H., Chairman of the National Coordinating Group for
Comprehensive Depositories: Letter dated December 23, 1971, to
Chairman Moss advising him of their interest in the subject of
immobilizing_certificate in depositories.
Securities and Exchange Commission:

Letter dated December 15, 1971, setting forth SEC opinion re-
garding statutory authority of SEC to compel NASD to adopt
uniform rules for clearance and settlement procedures by all
NASD members for both O-T-C and listed stocks, with
attachment_
Material relating to the incorporation of the New York Stock
Exchange.

Reply to letter of October 4, 1971, to Hon. John E. Moss, with
attachments__

Report of the SEC regarding comments on pending legislation,

submitted to the Office of Management and Budget for clearance.
Securities Exchange Act of 1934, Release No. 9426.
SEC data showing number of firms which went out of business
from late 1968 to 1970, where data processing was a significant
factor in failure, with attachments...

Securities Exchange Act release 8543 and other sundry releases..
Steadman, John M., The Law School, University of Pennsylvania:
Letter dated April 5, 1971, to Commissioner Smith, SEC, regarding
views to eliminate all stock certificates.
Subcommittee on Commerce and Finance:

Article entitled "Securities Struggle-Battle for Influence Over
Stock Trading Looms on Wall Street".
Correspondence between staff of Subcommittee on Commerce and
Finance and the SEC, re policy of placing rule 17a-8 proposals
in a public file__.

Letter dated October 4, 1971, from Hon. John E. Moss to Hon.
William J. Casey, to inform him as to the statutory basis for
clearing its budgetary requests with the Office of Management
and Budget....

Letter dated October 20, 1971, from Hon. John E. Moss, to George
P. Shultz, Director, Office of Management and Budget, re-
questing to be informed why SEC has to submit to the OMB
proposed legislation, legislative comments, etc., prior to or
simultaneously with submitting such material to Congress
Letter dated October 20, 1971, from Hon. John E. Moss to the
Chief Justice of the United States, asking his views re what
effect there would be if SEC were empowered to conduct its
Supreme Court litigation independently of the Solicitor Gen-
eral's Office..

Shultz, George P.: Letter dated November 10, 1971, in reply to
letter from Hon. John E. Moss, dated October 20, 1971-
Supreme Court of the United States: Letter dated November 9,
1971, replying to letter of October 20, 1971, from Hon. John E.
Moss

Van Dam, Henry, Corporate Transfer Agents Association: Letter dated October 19, 1971, submitting position papers to Subcommittee on Commerce and Finance...

Weinberg, Eli, article from Bank Administration, May 1971, en-
titled "A System of Certificateless Stock Transfers"

Page 1534

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1800

1395

1709

1458 1450

1585

1419

1666

1800

1808

1809

1808

1809

1533

1581

PARTS 4 AND 5

APPENDIXES

M. Answers to Questions, by Herman W. Bevis, Executor Director, Page

BASIC

1833

N. Comprehensive Securities Depository System-Study of Canceled
Stock Certificates, with statistical tables, exhibits, and charts______
O. Making the Certificate Machine-Readable (Discussion Paper, Sep-
tember 9, 1970)__

1838

1869

1888

1893

1895

1908

1922

1929

1935

P. Research Report on Making the Certificate Machine-Readable.
Q. The Machine-Readable Certificate Project.........

R. Four Proposed Uniform Forms-Transfer Instruction Delivery Ticket
Comparison Reclamation Form.

S. The Billion-Share Automated Securities Depository (Central Certificate
Service).--

T. Memorandum of Understanding on a Comprehensive Securities De-
pository System___

U. Chronology of the New York Stock Exchange, Stock Clearing Corpo

ration___

V. Operating Rules of the National Clearing Corporation

W. Report and Recommendations of the Security Imprinting and Processing Task Force of the Committee on Uniform Security Identification Procedures.

X. OCR Equipment for Reading Stock Certificates (Report to BASIC

July 1970), with charts, tables, and exhibits..

Y. Letter from Chairman Casey of SEC to Mr. Moss regarding fails, with charts, tables, and exhibits_.

Z. Suggest approach to the National Clearing Problem, with charts and exhibits

AA. Securities Industry Overview Study

BB. Paper Crisis in the Securities Industry: Causes and Cures..
CC. The Role of Banking in Elimination of the Stock Certificate__.
DD. Seminar-Is the Stock Certificate Necessary?.

EE. The Multiple Causes of Fails in Stock Clearing in the United States
(Volumes I and II).......

FF. A Securities Handling System for the 1975 Era-Report to New
York Stock Exchange.

GG. Reducing Costs of Stock Transactions: A Study of Alternative Trade
Completion Systems-Vol. I: Summary of Results...
HH. Reducing Costs of Stock Transactions: A Study of Alternative Trade
Completion Systems-Vol. II: Evaluation of Selected Alternatives_
II. Reducing Costs of Stock Transactions: A Study of Alternative Trade
Completion Systems-Vol. III: The Trade Completion Simulation
Model...

JJ. Reducing Costs of Stock Transactions: A Study of Alternative Trade
Completion Systems-Supplement to Vol. III: The Computer
Program

KK. A Presentation for the Elimination of the Stock Certificate, by
Compute-O-Gram Systems, Inc.-

1960

1971

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