The border vidette., 1933-07-29
ECONOMIC HlGHLIGHTS
July "a, 1888

A short time ago the rules and
regulations of procedure under
the new Federal Securities Act
designed to protect American
investors against worthless stock
issues, dishonest and misleading
investment claims) wero made
public. Restrictions are strict,
definite, decisive. Underwriters
must file with the Federal Trade
Commission full particulars be.
fore they may sell new securi
ties. Statements will be studied
by Commission accountants;
thereafter the Commission may
either permit the sale or cause
the securities to be withdrawn.
Registration tements will be
open to public inspection and
copies will be furnished at mo
derate cost to interested parties.
Any sales prospectus issued
by the security sellers must like
wise be filed. It will be studied
with a view to determining
whether it omits any Information
necessary to decide the value of
the Offering, whether it is mis-
leading, not sufficiently clear,
etc. Ia case radio broadcasts
are to be used in promotion
these, too. must be given Com
mission approval. A large
amount of technical information
will be required by the Commis
sion when registration is made.
It includes: Names and ad
dresses of all persons owning
more than ten per cent of any
class stock of the security issue;
remuneration exceeding $25. 900
paid by the stock issue during
past year and to director officer;
the estimated net proceeds to be
derived from the security. Com
mission costs will be borne by q
registration fee of one hundred.
tn of one per cent of the maxi.
mum aggregate price at which
| the securities are proposed to be
offered.
Thus, the new bill is more
sweeping in it's requirements than
any similar measure we have
ever known. The strictest state
blue sky" law pales by com
parison. What effect so drastic
a law will have on legitimate
promotions where there is room
for honest difference of opinion
in making statements and re
potts, remains to be seen.
AS the. always vivid Frank
| Kent said in the Baltimore Sun,
the extraordinary thing of the
moment is that recovery has
come before the recovery pro
gram has gotten started. None
of the three billion public works
dollars have been spent. The
first agreement under the Indus
trial Control Act has just been
signed, and has not yet had time
to produce results. The vast
farm plan is still in the prospec-
tive stage. Yet business is look
| ing up-all kinds of businesses,
in all parts of the country. The
psychological effect of bills de-.
signed to aid recovery unques
tionably were factor IN getting
wheels in motion.
Domestic prices recently reach
ed the highest level In close to
two years. Current upward
| movement has been the best sus
tanned in more than decade.
In 66 business days the Dow
Jones average of 40 corporation
bonds rose II 33 to 81 86 Par.
ticular business items Of interest
follow:
Postal Raceipts-Reports from
so cities show Improvement OF
% IS per cent in June as com
pared with previous June.
Bank Deposits - Substantial
gains made in second quarter.
Power Production-Is making
steady and sharp advances.
Car Loadings--Ab bout 25 per
better than last year at this time.
Railroad Earnings-Expenses
are down and gross revenue up,
presaging greatly improved net
income showings.
Steel-At highest point since
Agril, 1851, exceeding 80 per
of capacity.
Wholesale Prices-Steady ad
vances registered week by week.
Recent gains included farm pro
ducts, fuel, lighting, metals,
building materials, household
goods, etc.