The Omaha guide., 1933-08-12
ECONOMIC
HICHLICHTS

nIU0IIU0IO
Happenings that affect the Dinner
Pals, Dividend Checks and Tar Bills
Of every individual. National and Ia
~ternstional Problems Lnseparable
from local welfare.
A short time ago the rules and e
gulations Of procedure under the new
Federal Securities Act designed to
protect American Investors against
worthless stock issues, dishonest and
misleading investment claims) were
made public. Restrictions r strict,
definite, decisive. Underwriters must
file with the Federal Commission full
particulars before they can sell new
securities. Statements will be studied
by Commission accountants! thereaf-
ter the Commission may either per-
nit the sale or cause the securities to
be withdrawn. Registration state
ments will be open to public inspect
ion and copies will be furnished at
moderate cost to interested parties.
Amy sales prospectus issued by the
security sellers must likewise be fl
ed. 1t will be studied with a view to
determining whether it omits any in
formation necessary to decide the
value Of the offering, whether it is
misleading, not sufficiently clear, etc.
In case radio breakfasts are to be
used in promotion these, too, must be
given Commission approval. A large
amount Of technical information will
be required by the Commission when
registration is made. It includes:
Names and addresses of all persons
owning more than ten per cent of any
class stock of the security issue re-
Enumeration exceeding $25, 900 paid by
the 5tock-issuer during past year and
to director officer; borne by a regis
tration fee of one hundredth Of one
per cent of the maximum aggregate
price at which the securities are pro-
posed to be offered.
Thus, the new bill is more sweep
ing in its requirements than any
similar measu we have ever known.
The strictest state "blue sky" law
pales by comparison. What effect SO
drastic a law will have on legitimate
promotions where there is room for
honest difference Of opinion in max
ing statements and reports, remains
to be seen.
AS the always vivid Frank Kent
said in the Baltimore Sun. the extra
ordinary thing of the moment is that
recovery has come before the recov-
cry program has gotten started. None
of the three billion public works dol
lars have been spent. The first agree
ment under the Industrial Control
Act has just been signed, and has not
yet had time to produce results. The
vast farm plan is still in the pros
pective stage. Yet business j. looking
up-all kinds of businesses, in all
parts Of the country. The psycholo-
gical effect Of bills designed to aid
recovery unquestionably were a fact
or in getting wheels in motion.
Domestic prices recently reached
the highest level in close to two years
Current upward movement has been
the best sustained in more than q de
cade. In Sc business days the Dow
Jones average of 40 corporation bonds
rose 1888 to 1886. Particular bust
items of interest follow:
POSTAL RECEIPTS - Reports
from so cities show improvement of
1855 per cent in June as compared
with previous June.
BANK DEPOSITS - Substantial
made in second quarter.
POWER PRODUCTIONS max
ing steady and sharp advances.
CAR LOADINGS ~ About Is per
cent better than last year at this time.
RAILROAD EARNINGS - Ex-
penses r down and gross revenue
Up, p~resaging greatly improved net
income showings.
STEEL-At highest point since
1881, exceeding so per cent 70