Evening star., 1934-08-14
TWO ARE NAMED
AIDES TO PECORA
Cohen and Meehan Picked
as Assistant Chiefs in
Securities Unit.
BY the Associated Press.

By the Associated Press.
The Securities and Exchange Conn
mission today announced appoint
ment Of Leon Cohen and Frank J.
Meehan, both Of New York, as as
sistant chiefs Of the trading and ex-
change division.
This is the division of the commits
sion under Commissioner Ferdinand
Pecora, charged with supervising
trading methods on stock exchanges.
Since 1919 Cohen has been in the
brokerage and investment banking
business in Chicago and New York.
He retired as general partner from
the firm Of E. Lowitz & Co., member
of the New York Stock Exchange, to
join the commission. Cohen repre-
Sented the Lowitz firm on the floor Of
the exchange.
Meehan Aided PecOra.
Meehan was a special accountant
for the Department of Justice and
assisted in the preparation of bucket
shop and mail fraud cases through
out the country. He also has been
chief statistician of the Bureau OF
Securities of New York State and
was in charge Of Investigations of
manipulative practices. He aided
Pecora in the Senate stock market
investigation as official in charge Of
all field Investigations.
The Securities Commission yester-
day called the Nations stock ex-
oh fn tnl Oh
selves as a prerequisite to doing
business.
The commission issued its first rules
and regulations for the registration Of
exchanges and listed securities. For
the most part, they we're searching
questions, designed to lay the basis for
future and more drastic supervision.
The commission also required that
corporations whose securities are now
listed must file registration state
ment. This statement is virtually
only a form. to be superseded later
with requirements for much more de-
tailed data.
Securities Must Be Registered.
Registration is required of exchanges
as preliminary to doing business.
Similarly securities on exchanges must
be registered before they can be sold.
Registration means simply that ex-
changes and corporations must file
with the commission certain specified
about themselves, which
information will be available to the
public in general, and on which the
public may decide whether to buy or
sell securities. rH.r
Chairman Joseph P. Kennedy, at
a press conference, said the rules did
not as yet constitute safeguards for
investors, but they will give the in
formation on which such protection
shall be based.
Kennedy emphasized also that the
commissions control was no guarantee
OF the worth Of stock, and that any
person who expected Government su-
pervision to make the market "go up
when he was long, or down when he
was short" was mistaken.
The rules and regulations did make
a few absolute requirements of ex-
changes In conformity with the ex-
change act. Exchanges must have
a rule for the suspension and expul-
sion Of members, and must specifically
agree to abide by and enforce the ex-
change act and the commissions
regulations.
Certain Securities Exempt.
Oficers, directors and principal
stockholders must, beginning in No
vember, inform the commission II
they trade in their company's stock.
The exchange act provides that prof
its made from such transactions must
go into the company's treasury.
The rules also exempt certain Sc
curities from registration, and Chair
man Kennedy emphasized the exemp-
ton OF foreign government and cor
poration securities. It was necessary
to exempt these, he said, to protect
American investors who might other
wise suffer If foreign agencies decided
not to list their securities.
Kennedy remarked that the infor-
nation sought Of exchanges covered
everything I'VE could think Of" but
I'VE may have forgotten something,
and this will give us an opportunity
to find out" Kennedy said Stock Ex-
change officials were somewhat crit
ical, but generally approved the rules
and regulations.