January 8, 1973, The second in a series of three reported stolen New York City municipal bonds, due 1/1/73, for $5,000.00 was inquired and confirmed on for the Division of Municipal Securities, and confiscated by the paying agent when presented for redemption. This bond was reported as found on the sidewalk by a woman, who was accompanied by her lawyer when presenting for payment.

January 15, 1973, A subscribing municipal bond brokerage firm, avoided payment and negotiation of a transaction by prompt inquiry of the SVS system, and confirmation that a stop was placed by the transfer agent. The bond in question was a $5,000.00 NYC municipal bond, updated by the city. January 16, 1973, Because of overdue coupons attached to a $5,000.00 New York City municipal bond, a suspecting SVS subscribing brokerage firm negated payout by inquiry and confirmation of SVS and the Division of Municipal Securities, New York City.

January 17, 1973, A subscribing brokerage firm of the Securities Validation System, inquired, confirmed and validated that a payout of $46,000.00 was negated, by enforced and stringent procedures developed for the firm's branch office. This particular security, a 1000 share certificate of First Union Incorporated common stock, was established to be at that days market value of $46.00 per share, and updated on SVS by Chubb & Son Insurance Company. February 15, 1973, A letter of confirmation was received from Mr. George R. Reis, Vice President Operations Group, Bache & Co., which stated, “We have been a subscriber to the SVS system for almost a year. This system has given us greater assurance that securities received in our branch system and home office are freely negotiable before we release the proceeds of sale to our customer. Recently we were able to intercept a $50,000.00 pay-out by an international branch based upon information provided by the SVS system”. signed.

February 20, 1973, Based on a sampling of securities inclusive of Bowling Corporation of America, Polaroid, Quaker State Oil, Singer and Sony, 62 certificates estimated at $400,000.00, inquired upon by Hornblower Week's, a SVS subscribing brokerage firm, confirmed that the securities being presented for sale were reported as stolen. These securities were a portion of $3.8 million in negotiable securities, taken at gunpoint from a Hayden, Stone messenger on April 4, 1972, enroute to the New York Stock Exchange from the Battery Place offices. Reported by the New York Post, on February 22, 1973, the revelation followed the arrest of two men, identified by detectives of the Police Department's Bond and Forgery squad as Claude Scallion, of Jackson, Miss, and Donald Marino of Moston, Mass. The two were arrested in the Americana Hotel room as they were about to sell the contraband securities through an Egyptian sheik who was cooperating with local authorities.

April 20, 1973, Based on SVS inquiry by the New York Stock and Bond Squad, and confirmation of the City of New York, Division of Municipal Securities, it was established that by virtue of a defaulted loan, a New York City $5,000.00 municipal bond was detected and reported as stolen by New York City. The Hillside Bank of Illinois, a non SVS subscriber had reportedly accepted the bond as security for a collateralized loan transaction. April 23, 1973, Three corporate bonds valued at $300,000.00 of General Motors Acceptance Corporation, Shell Oil Company and Continental Oil Company, were inquired upon by a Lincoln Park, N.J. branch office by a SVS subscribing bank. The securities, confirmed by two New York City brokerage subscribers were a portion of a $2 million dollar enroute airline theft being delivered by Brinks for Morgan Guarantee, New York City clearing bank. The brokerage firms inputted the stolen bond information for the non-subscribing bank. April 25, 1973, $1,000.00 of Boise Cascade common stock was physically recovered for subscribing SVS brokerage firm by inquiry and confirmation by a broker who was arranging a delivery versus payment transaction for a "Known" customer.

April 30, 1973. A major New York SVS subscribing bank inquired on 650 shares of Phillips Petroleum common stock, valued at $30,225.00, being presented for a collateral loan. Upon confirmation of the non-negotiable securities, the inputting transfer agent promptly notified the local FBI and New York City Police of the incident, in anticipation of apprehension of the individual. June 6 1973, Inquiry and confirmation was established by a subscribing New York City bank of a $10,000.00 Household Finance bond, being negotiated

for a collateral loan. The information necessary to identify the security was obtained from a recent NASD lost notification circulated to member firms. June 7, 1973, A $50,000.00 U.S. Treasury Bill was inquired upon by a subscribing SVS brokerage firm, acting on behalf of a major New York City bank. The bank, a non-subscriber was awaiting clearance confirmation to accept the security as a collateralized loan. The stop information, necessary to negate the transaction was supplied by the Federal Reserve Bank of New York, via the U.S. Treasury Department.

June 8, 1973, When presented with a sales transaction of $1,000.00 of U.S. common stock, a Canadian SVS subscriber inquired and confirmed that the stock was reported as stolen from a New York City brokerage house. The securities were physically recovered and the sale was not consumated.

June 21, 1973, A request by the U.S. Postal Authorities of New York City, of 51 Oklahoma Industrial Authority, municipal bearer bonds, valued at $255,000.00, initiated the inquiry by SVS and confirmation of a subscribing brokerage firm. The brokerage firm was able to physically recover the securities and obtain a redemption on their bond of indemnity.

June 22, 1973, Instant inquiry and confirmation of the SVS system, provided a subscribing brokerage firm with the physical recovery, prior to replacement of a $5,000.00 Long Island Lighting Company debenture, reported into the SVS data base as a registered mail loss.

June 25, 1973, Two hundred shares of Niagara Mohawk Power Corporation, common stock, valued at $3,200.00, was physically recovered for a subscribing brokerage firm based on inquiry and confirmation of a New York City participating agency.

June 25, 1973, Three hundred shares of McDonalds Corporation common stock, valued at $19,800.00, was physically recovered for the National City Bank of Cleveland, a non-subscriber of the SVS system based on the physical possession and inquiry of a New York City participating agency.

June 26, 1973, A physical recovery of securities valued at $21,500.00 was made by virtue of an inquiry by U.S. Postal Authorities, and confirmed as reported outstanding by clients of a New York City investment counselor from Barrett Associates. Because the replacements were not issued, the clients of the investment firm redeemed the entire amount of the bond of indemnity. June 27, 1973, 550 shares of the Valley National Bank of Arizona common stock, valued at $13,000.00 was physically recovered for W.E. Hutton, a nonsubscribing New York brokerage firm, based on inquiry, confirmation and information supplied by the U.S. Postal Authorities.

June 28, 1973, A New York Telephone Company debenture, valued at $5.000.00 was physically recovered for Registered Mail Central Bureau, the holder of the bond of indemnity issued as a mail loss. The information initiating the inquiry and confirmation, was supplied by a New York City participating agency.

June 29, 1973, Two $100.00 AMK Corporation, reported as a mail loss by a subscribing SVS brokerage firm, were physically recovered by inquiry and confirmation of the New York City U.S. Postal Authorities.

July 5, 1973, Eight shares of capital stock, of 1st National Bank of New Jersey, valued at $336.00, was confirmed by the 1st National Bank of New Jersey, Totowa, New Jersey office. The security is presently in the hands of the U.S. Postal Authorities. At this point in time, the bank has not claimed the security because they claim, "It was a mail loss and not in bearer form and there is no monetary value".

July 6, 1973, Two hundred shares of McCord Corporation capital stock, valued at $3,000.00, were physically recovered for a non-subscribing transfer service, which reportedly was a mail loss from Bankers Trust Company of New York to the Mercantile National Bank. The inquiry and confirmation provided the transfer agent with physical recovery of the security, prior to obtaining the bond of indemnity and replacement.

July 9, 1973, A Wall Street subscribing brokerage firm, by inquiry of SVS and confirmation furnished by the inputting bank note company, established that forty-one ACF Industries corporate bonds, had been reported as stolen in transit. These securities, a portion of an estimated $25 million dollar Emery Freight loss of ACF Industry debentures, represented a dollar value of $205.000.00 which reportedly were to be delivered by a bank in London, England.

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July 19, 1973, Securities consisting of a $100,000.00 U.S. Postal bond, fortytwo $1,000.00 counterfeit corporate bonds in the form of Standard Oil of California, and nine $5,000.00 municipal bonds, reported as stolen from a brokerage firm, were detected on the SVS data base, by inquiry of a subscribing broker. The origin of the inquiry, reportedly was established by Scotland Yard, predicated on securities received and too be delivered to the U.S. from a London, England bank. All securities were confirmed by the inputting participants of the SVS system, in addition to the U.S. Postal bond by the Federal Reserve Bank of New York.

July 23, 1973, A New York Manhattan bank, prior to cash settlement on ' the sale of a $5,000.00 NYC municipal bond which had been inputted into SVS by the Division of Municipal Securities, inquired and confirmed that a stop had been placed against the bond, thus negating the sale.

July 31, 1973, Based on inquiry and confirmation from inputting transfer agents, seven securities representing 142 common shares of ATT, and two Pacific Telephone & Telegraph $5,000.00 debentures, were reported as stolen. The information requested by a Washington, D.C. participant represented a combined dollar value of $11,806.00.

August 24, 1973, One hundred shares of Imperial Oil common stock, valued at $3,300.00 was inquired upon SVS, confirmed as outstanding by the inputting transfer agent, and physically recovered between two merging New York City brokerage houses.

August 30, 1973, A combination of Seaboard Corporation, Tampa Electric Company and Leverage Fund capital stock, totaling 3700 shares, valued at $30,000.00 was confirmed by the Boston Stock Exchange Clearing Corporation as reported stolen into the SVS system, for an inquiring SVS brokerage firm. September 14, 1973, 1000 shares of Public Service Electric and Gas, valued at $29,000.00 was physically recovered for the losing stockholder, based on inquiry initiated by the U.S. Postal Authorities of N.Y. and confirmation by the inputting transfer agent, via the Securities Validation System.

September 14, 1973, When presented with six municipal bonds, NYC, for redemption to the paying agent, inquiry and confirmation between the Division of Municipal Securities and SVS staff personnel, established that the individual presenting the securities, attempted to redeem $15,000.00 reported as lost, plus $15,000.00 which were the replacements. The paying agent thus negated the excess that would have been negotiated.

September 17, 1973, Confirmation of one hundred shares of The Kroger Company common stock, valued at $1,800.00 was made by BT-Bradford, acting as transfer agent. The physical recovery of the security was made based on information and inquiry by the U.S. Postal Authorities of New York.

September 18, 1973, A combination of J.P. Morgan & Co., Gould's Pumps, Inc., IVAC Corp., Ground Water Industries, Inc., Manufactures Hanover Corporation, Hydro Optics and Prospect Industries Corporation common stock, with a combined dollar value of $17,562.00, was inquired, confirmed and physically recovered for Chubb & Son, a subscribing SVS insurance company. This recovery was made possible with data submitted and the cooperation of the U.S. Postal Authorities of New York City.

September 19, 1973, Based on inquiry of a subscribing SVS member, eight shares of General Motors common stock, valued at $512.00 was confirmed as outstanding by the participating transfer agent. The physical recovery of the stock was made for the corporation's stockholder.

September 19, 1973, A reported registered mail loss of 120 shares Gulf Oil. 100 shares of H&R Block, 21 shares of Pan American, 100 shares of Savanna Electric and 50 shares of Scott & Fetzer, common stock, valued at $7,216.00, was physically recovered and returned to a subscribing brokerage firm, based upon inquiry and confirmation by a New York City participating agency.

September 19, 1973, Information supplied to SVS applicable to two bonds of indemnities, reported and considered outstanding by the Registered Mail Central Bureau, subscriber of SVS, led to the physical recovery and return of the securities for the bureau. The securities, one hundred shares of Union Oil Company of California and thirty-two shares of Oil Resources Incorporated were valued at $3.732.00, and inquired upon by U.S. Postal Authorities of New York City.

September 20, 1973, Based on confirmation of Bradford Shareholders Services, a non-participating SVS tranefer agent, a physical recovery of 200 shares of Compusamp, Inc., and 100 shares of General Cable Corporation common stock, estimated at $1,050.00, was identified as in-hand and returned for the stockholder by the U.S. Postal Authorities in cooperation with SVS personnel. September 21, 1973, Based on information furnished by Registered Mail Central Bureau, of New York City, which represents eighteen insurance companies relative to reported mail losses, U.S. Postal Authorities, having in their physical possession three thousand shares of Copperweld Steel Corporation common stock, made inquiry, confirmation and physical recovery of the stock. The securities in question, valued at $63,000.00, were returned to Registered Mail Central Bureau to relieve the bond of indemnity. In addition, the Copperweld Steel Corporation was immediately notified and confirmed that the stockholder would receive a portion of the bond of indemnity allocated for replacement.

September 24, 1973, $100.00 of Peso Silver Mines Limited, reported by the Registered Mail Central Bureau, was inquired, confirmed upon and returned to the rightful owner to relieve the bond of indemnity payment, which was too be paid.

September 24, 1973, Forty-five shares of First Pennsylvania Corporation common stock, valued at $1,800.00 was identified as a mail loss item and physically recovered by a subscribing SVS brokerage firm. The stop information was supplied by Chubb & Son, insurance company, subscribing to the SVS system.

September 25, 1973, Based on inquiry and confirmation of SVS, the U.S. Postal Authorities of New York City, were able to physically recover and return two hundred shares of Chemical New York Corporation common stock, valued at $8,000.00 for duPont, Glore, Forgan, Inc., a subscribing brokerage firm. September 26, 1973, Three hundred shares of Union Oil Company of California common stock, valued at $11,550.00 inputted by a subscribing SVS brokerage firm as a mail loss, was confirmed and returned to the Security Pacific National Bank, transfer agent, which had the stop placed against the security.

September 27, 1973, Inquiry and confirmation was initiated by U.S. Postal Authorities of New York City, detecting two hundred shares of INA Corporation common stock, valued at $8,000.00, which was reported as a mail loss by a subscribing Wall Street brokerage firm. Confirmation and return of the lost security was made for First National Bank, Bartlesville, Oklahoma. September 28, 1973, Five hundred shares of Frontier Capital Corporation common stock, with a value of $500.00 was physically recovered and returned to Weis Securities, a New York Stock Exchange brokerage firm, currently in liquidation by SIPC. This recovery was made by information supplied and the cooperation received from U.S. Postal Authorities, New York City.

October 1, 1973, A Long Island bank inquired and received confirmation of the following securities, accepted in a defaulted collateralized loan transaction: Five (5) $10,000 American Telephone and Telegraph Company debentures, five hundred (500) shares of Iowa Electric and Power Company common stock, and a one hundred (100) share of counterfeit IBM Corporation common stock certificate, with a combined dollar value of $62,000.00. Upon confirmation of the securities by SVS personnel, it was learned that the inquiry was established to provide the insurance company involved, with supporting documentation. Reportedly, all transfer agents were contacted at the initiation of the loan, and thereafter the details of the case were provided to the Federal Bureau of Investigation. It has since been learned, that the individual pledging the securities for a New Jersey business loan, is associated with New York Organized crime members.

October 3, 1973, Over two thousand shares of various over-the-counter securities, valued at approximately $1,000.00 were physically recovered and returned to the brokerage firm of DRYFOOS & Company, presently in liquidation. This recovery was made on information supplied for SVS inquiry and confirmation by U.S. Postal Authorities of New York City.

October 4, 1973, A $10,000.00 Community Savings Bank of Rochester subordinated note was physically recovered and returned to the Community Savings Bank of Rochester. The bank, acting as their own transfer agent, had

just replaced the security on 10/1/73, which apparently will lead an ultimate savings on the bond of indemnity. The security was identified on the SVS data base, by a New York City agency, participating in the SVS program.

October 5, 1973, $20.00 of Toledo Mining Company common stock was recovered for a subscribing SVS brokerage firm. Significantly, the necessary paper work involved would have cost the broker more than the stock was worth. The security, registered in the name of the broker was supplied by U.S. Postal Authorities of New York City.

October 5, 1973, Seventy shares of Massachusetts Electric Company common stock, valued at $7,000.00 was inquired and confirmed on by a subscribing SVS participant. The security was identified and physically recovered for the Worcester County National Bank of Massachusetts. The bank, acting in the capacity of transfer agent claimed the security for the stockholder filing for the loss.

November 20, 1973, Based on information supplied by the U.S. Postal Authorities, and confirmation by The Bank of New York, a non-SVS-subscribing New York clearing bank, two hundred shares of Dome Petroleum, Ltd., common stock, valued at $8,000.00 was physically recovered and returned to the bank. The Bank of New York, acting in the capacity of transfer agent for Dome Petroleum, confirmed the securities were lost in the mail, and that replacements had not yet been issued.

November 20, 1973, Based on inquiry and confirmation of SVS, fifty shares of Jones & Laughlin Steel Corporation, common stock, valued at $850.00 was physically recovered by duPont, Glore, Forgan, Inc., an SVS subscribing brokerage firm.

November 20, 1973, Two thousand shares of Elsburg Gold Mining Company, Ltd., common stock, valued at $8,000.00, was physically recovered and returned to Morgan Guaranty Trust Company, a non-SVS-participating New York clearing bank. This recovery was confirmed by securities presented as mail losses by the U.S. Postal Authorities of New York City.

November 21, 1973, Thirty-four shares of Hartwell & Campbell Fund, Incorporated, common stock, valued at $391.00 was physically recovered for the individual stockholder who had mailed the security to his broker for sale. The recovery was made via SVS inquiry based on information supplied by the U.S. Postal Authorities.

November 21, 1973, Eight hundred shares of Florida Glass Industries, Incorporated, common stock, valued at $3,200.00, was physically recovered by information supplied by the U.S. Postal Authorities of New York City. The securities were confirmed by Trans-America Transfer Company, as having been reported and replaced as a mail loss for P&H Securities, currently in liquidation. The Insurance Company of North America (INA) a non-SVSparticipant was immediately notified in order to cancel the bond of indemnity. November 21, 1973, A $3,600.00 mutual fund plan for The Dreyfus Systematic Accumulation Program, was confirmed and physically recovered for The Bank of New York, a non-subscribing New York clearing bank. The information supplied by U.S. Postal Authorities provided the individual stockholder with the opportunity of recovery of the reported mail loss.

November 23, 1973, Inquiry of the SVS system was established for U.S. Postal Authorities of Chicago, Illinois, who in the apprehension of a suspected individual, queried on securities found in his possession. The securities valued at a combined total of $8,565.00, were confirmed by Thompson, McKinnon, SVS inputting subscriber. The securities in question were identified as a portion of a reported mail theft shipment from Jacksonville, Florida to New York, occuring in December of 1971. It is anticipated that the SVS confirmation will benefit law enforcement officials for prosecutive purposes. November 23, 1973. Two State of Israel bonds valued at $340.00, were physically recovered and returned to the Development Corporation of Israel. New York City, based on information supplied by U.S. Postal Authorities in addition to inquiry and confirmation of SVS.

November 23, 1973. Based on inquiry by the U.S. Postal Authorities of New York City and confirmation by Firemans Fund, SVS subscribing insurance company a $3.000.00 Investment Property Association debenture and thirty warrants. totaling $3.040.00, were physically recovered and returned to an individual stockholder.