Evening star., 1933-03-30
BY the Associated Press.


T ERE is an analysis Of the pro-
IL posed Federal Securities act.
submitted to Congress yester-
L i day by President Roosevelt,
prepared by Huston Thomp-
son, one of it's trainers and a former
member Of the Federal Trade Commis-
sion:
"The Federal Securities act Is bill
to provide for the furnishing OF tnfor-
nation and the supervision Of traffic
in investment securities in interstate
commerce.
sections l and 2 contain the title Of
the bill and certain definitions on the
following subjects: Security person,
sale 'iSSuer,' commission (meaning
the Federal Trade Commission which
is to have Jurisdiction under the bilD
mortgage title and interstate COM
merce.'
section 3 sets forth certain require
ments in the matter of the sale and ad-
iyertisement of securities in interstate
commerce and forbids such sale or ad-
vertisement until certain information
shall have been filed with the commits
sion, This sections covers the subjects
Of:
"(A The sale or offer to sell domes-
tic securities In interstate commerce.
"(B) The advertisement Of domestic
securities through interstate medium in
cluding not only newspapers, circulars
and magazines but also radio.
(C) The physical transportation OF
domestic securities across State lines.
"(D) The sale or offer to sell by per-
sons or corporations of the securities
of foreign governments in the United
States.
Provision of Section 4.
"Section provides that the promot--
ers, principal officers and directors OF
corporations shall sign the statement
except in the case of securities issued
by foreign governments, when the
statement shall be signed by persons
in the United States negotiating or
underwriting the loan for the sale IN
the United States.
Section 5 designates the informa-
ton required in the statements to be
filed with the commission and con-
sists of two subdivisions (a) informa-
ton required Of domestic corporations
and (b) information required concern
ing foreign government securities.
In the case of domestic securities 1t
requires the names of the iSSuerS OF
the stock promoters, trustees, officers,
etc, the amount OF paid up capital, the
numbers and types of shares with the
description of their respective voting
rights, dividends, profits, the amount
of funded debt, balance sheet show
ing a detailed list of assets and liza
bihties, a statement Of the amount of
the issuerS' incomes, expense and fixed
charges during the preceding fiscal
year; the plan of the proposed issuer,
the price offered to the public, all
bonuses. commissions and the amount
returned to capital investment, to-
gether with the names of all OF those
composing the syndicate.
In the case of the securities issued
by foreign governments the American
Representatives shall state the purpose,
date and terms Of the loan.. the under
writing agreement, members Of the
syndicate, bonuses, commissions and
amount to be returned to the foreign
government, the securities pledged with
the loan and the general financial con-
dition o fthe borrowing government
and whether it has ever defaulted on
principal or interest or any security
sold in the United States together with
the proposed method of distribution
and price of the security as offered
here.
"a fee Of one -hundredth Of