Evening star., 1933-06-16
To Follow British Pattern.

1t is contemplated that the activities
OF the corporation shall be similar to
those of the British corporation of for
cial status and has been in existence
for IS years. The corporation will take
the place of numerous unofficial COM
mittees which now represent American
holders of defaulted foreign dollar bonds
the varying degrees of success.
The act states that the corporation
shall be created "for the purpose of
protecting, conserving and advancing
the interests of the holders of foreign
securities In default" It's principal Of
flee would be in the District of Co.
lumbia, but branch Offices may be es-
tablished elsewhere.
The control and management Of the
corporation is vested in board Of six
directors who shall be appointed by
the Federal Trade Commission, which
also shall appoint their successors. The
first chairman and vice chairman will
be appointed by the commission, but
their successors in these Offices after
they cease to be directors will be
named by the board itself Six-year
terms are provided for the directors
after the completion of initial stag
gered terms.
No person shall be eligible to service
as q director who within the five years
preceding has had any interest, direct
or Indirect, in any corporation, COM
pany, partnership, bank or association
which has sold, or offered for sale, any
foreign securities.
Boards Powers Defined.
With the approval of the Federal
| 40 ~ GU
the compensation of its own members
as well as of officers, members of COM
mittee employees, attorneys and agents
without regard to the provisions of other
laws applicable to the employment and
compensation Of officers or employees OF
| the United States The board may dis
miss employees at its pleasure and 9TH
erwise is given complete power over its
affairs.
Under the terms Of the act, the board
may:
/. Convene meeting Of holders Of for
eign securities.
2. Invite the deposit and undertake
the custody of foreign securities which
have defaulted in the payment either
Of principal or interest and issue re-
ceipts or certificates In the place OF
securities so deposited.
8. Appoint committees from the di-
rectors of the corporation and other
persons to represent holders Of any
class or classes Of foreign securities
which have defaulted in the payment
either of principal or interest and de-
termine and regulate the functions Of
such committees
f. Negotiate and carry out, or assist
in negotiating and carrying out, ar
rangements for the resumption of pay
ments due or in arrears in respect of
any foreign securities in default or for
rearranging the terms on which such
securities may in the future be held
or for converting and exchanging the
same for new securities or for any other
object in relation thereto. Under this
clause any plan or agreement made
with respect to such securities shall be
binding upon depositors, providing that
| the consent Of holders resident in the
United States Of go per cent Of the
securities deposited with the corpora
ton shall be obtained
May Publish Useful Data.
8. Undertake. superintend, or take
part in the collection and application
Of funds derived from foreign securi-
! ties which come into the possession OF