CHERRINGTON, HOMER V. The Investor and the Securities Act. Pp. x, 255. Washington: American Council on Pub lic Affairs, 1942. Paperbound: $2.50; Clothbound: $3.25

Published date01 May 1942
AuthorDouglas R. Fuller
DOI10.1177/000271624222100169
Date01 May 1942
Subject MatterArticles
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228
would give a fair return upon this base.
which has now been accumulated.
Pro-
Spencer holds that &dquo;the conclusion is in-
fessor Cherrington has provided &dquo;an ex-
escapable&dquo; that such method was used, re-
amination of the law and its administration&dquo;
gardless of the denials of the regulatory
that is competent, readable, and consistently
bodies, and regardless of the fact that he
objective in its treatment. That it is
is concerned with only one of several spe-
largely descriptive, with limited emphasis
cific rates making up the total rate struc-
upon interpretation and evaluation of
ture of the air carriers.
In Dr. Spencer’s
trends, appears to be the result of conscious
attempted proof of this conclusion, the stu-
restraint.
dent of rate-making methods will find much
Early chapters (I to IV) sketch the back-
interesting material for discussion and de-
ground leading up to the passage of the
bate.
Securities Act, and the experience of the
Although the book as a whole is an
British with such legislation, in addition to
admirable piece of work, there are some
discussing the major provisions of the act
noticeable weaknesses in the all too infre-
and the companion Trust Indenture Act
quent passages which involve matters of
of 1939. Chapter V is devoted to a de-
economic theory rather than questions of
tailed examination of the organization, pro-
public policy or administration. For ex-
cedures, and general policies of the Securi-
ample, the proposition that the air trans-
ties and Exchange Commission.
portation industry is one of decreasing costs
Chapter VI, &dquo;Significant Forms of Mis-
is supported only by pointing out that &dquo;a
representation,&dquo; is an enlightening summary
high percentage of its costs are of the
of the principal pitfalls prevalent in security
overhead variety,&dquo; and by making a his-
offerings, drawn largely from decisions of
torical comparison of unit costs in 1935
the Commission in &dquo;stop...

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