COMMITTEE EXHIBIT No. 114, FEBRUARY 26, 1934

(This exhibit consists of a letter dated November 27, 1933, from Charles E. Hudson, President, San Francisco Mining Exchange, to Ferdinand Pecors, together with accompanying data, letter appears in full on page 1209.)

SECRETARY'S OFFICE, SAN FRANCISCO MINING EXCHANGE,

327 Bush Street, San Francico, Nov. 27, 1933.

Mr. FERDINAND PECORA,
Counsel, Committee on Banking and Currency,

285 Madison Ave., New York City.

DEAR SIR: Complying with your request we are inclosing herewith today's quotation sheet which gives the bids and offers and sales of stocks listed on this Exchange, together with the names and addresses of the members of the Exchange In this connection, I wish to remark that our Exchange may be termed a white chip trading rendezvous for stock. Mining and oil stocks are necessarily of a speculative character and we do not attempt to make the public think that they are anything else. A hole in the ground today may be a mine of value tomorrow and the mine of immense development may run out of its ore and be a tremendous hole in the ground the next day. Our stocks for that reason, as I said before, are speculative and do not have the immense quantity of water that many of the industrial stocks contain. The fact is, we have to supply water from the desert area while the industrials are usually organized by promoters and supplied with water with great hydraulic pumps from the Atlantic Ocean. If we can be of further service, we are at your command. Yours very truly,

CHAS. E. HUDSON,

President.

P.S.-The bankers generally don't help us because our activities interfere

with their game.

SAN FRANCISCO MINING EXCHANGE

(FOUNDED 1862)

Public sessions: Daily, 9:30 to 1:30; Saturday, 9:30 to 11:30

327 BUSH STREET, SATURDAY, NOVEMBER 25, 1933. PHONE GARFIELD 3206

OFFICERS

Chas. E. Hudson, President; W. H. Hannon, Vice President; K. Cohn, Secretary; R. A. Broy, Treasurer.

MEMBERS

Amigo, H. J., Russ Bldg. (H. J. Amigo & Co.).

Bevis, J. E., Reno, Nev.; Brown, R. Fred, 327 Bush St.; Broy, Geo. L., 381 Bush St.; and Broy, R. A., 381 Bush St. (Geo. L. Broy & Co.).

Busby, F. M., 155 Montgomery; Clemens, G. M., 155 Montgomery (R. L.. Colburn Co.), 639 S. Spring St., L. A.

Coe, E. W., 127 Montgomery (E. W. Coe & Co.).

Coffin, A. F., 335 Bush St. (A. F. Coffin & Co.).

Cohn, K., Russ Bldg.; Elliot, Emery W., 514 Mills Bldg. (Elliot & Co.). Epstine, C. B., 329 Bush St.; Epstine, H. E., 329 Bush St.; Eyre, Perry. Merchants Exchange.

Flach, Geo. J., 321 Bush St. (Hudson Sons Co.).

Forsyth, W. D., 321 Bush St.; Frankenthal, A., New York City; Goodman,. Gerald M.; Hannon, W. H., Alexander Bldg.; Harris, D. D., 335 Bush St. (A. F. Coffin & Co.).

Hayward, F., 155 Montgomery; Hudson, Chas. E., 321 Bush St. (Hudson Sons Co.).

Judge, Jr. Martin, 1 Montgomery (Martin Judge, Jr. & Co.).

Kendall, Zeb, Virginia City, Nev.; Kinley, W., Mills Bldg.; Kryer, L. H., Los Angeles, 639 So. Spring St.

Leary, E. R., 321 Bush St.; Nowell, A. R., 415 Montgomery (Lohmann & Nowell).

Peters, H. Z., Russ Bldg.; Richardson, J. N., 327 Bush St.; Schlanzer, F. A., Reno, Nev.; Shaw, B. F., 127 Montgomery St. (Shaw Bros.). Thomas, Arthur, Salt Lake City (Arthur Thomas, Inc.). Walker, F. H., 155 Montgomery (Gartland & Walker).

Wilson, Boyd L., Berkeley; Wingfield, Geo., Reno, Nev.; Wollberg, A. S., 325 Bush St. (Zadig & Co.).

Zeitlin, R., Los Angeles (E. Graham Elliott Co.).

Facilities for investigating securities are available for every one. Investigate before investing.

Stocks listed on a recognized exchange are safer than unlisted issues. Trade only in listed stocks.

The data on these sheets are collected with care, but neither the completeness nor the accuracy of the information is guaranteed; no responsibility is assumed for any of the statements herein contained nor for any omissions or inaccuracies therein.

COMMITTEE EXHIBIT NO. 115, FEBRUARY 26, 1934

Mr. Chairman, as I stated in my opening remarks, the New York Stock Exchange has constructive suggestions to make in regard to the pending legislation for the regulation of stock exchanges.

The purposes to be accomplished by such legislation are: First, the prevention of fraudulent practices affecting stock exchange transactions; Second, the prevention of the use of an excessive amount of credit for security speculation; and, Third, the elimination of practices which, though not fraudulent, permit the manipulation of security prices.

The most important question in regard to any regulatory legislation is the determination of what body shall exercise the regulatory power. Obviously this body, whether it be called a commission or an authority, must include persons who are familiar with credit conditions throughout the United States and also persons who are fully conversant with the technical problems connected with the operation of stock exchanges. In addition, a majority of the members of such a body should be outstanding individuals who would represent the public. Having this in mind, we suggest the creation of a Stock Exchange Coordinating Authority to consist of seven members.