The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

4. The transier from the Fedcral authorities to the Province of regulatary jurisdiction over Dominion--incorporated companies operating within the Prov-- 3. Amending of th> Criminal Code by the Federal Government, not only to make easier the proving of "bucket-- ing" charges, but to provide a seven-- year penitentiary penalty for another modified type of "bucketing"--the of-- fense of a broker reducing the quantity of stock which he should be carrying for his customers by selling for his own account against his customers' buying 2. Reformation and revision, where necessary, of stock exchange constitu-- tions, by--laws and organizations, and the addition to those by--laws and regu-- lations, where they do not now exist, of rigid noew provisions respecting the listing of securities for trading:; trading practices; clearing--house practices; brokers' records; reports to customers, and control of exchanges over members. 1. Drastic amendments to the Se-- curity Frauds Prevention Act, with special stress laid on the regulation of trading. What Ontario will recommend to improve general trading conditions and to further protect her investing public --and Ontario's recommendations are pretty well the recommendations of the other Provinces--can be summed up as follows: Report of the recent inter-- provincial conference at Queen's Park on the brokerage house and stock exchange question was made public last evening by Attorney--General William H. Price, simultane-- ously with the release of re-- ports by the Governments of the five other Provinces rep-- resented at the parley. What Ontario Will Do. OFFICIAL REPORT GIVEN TO PUBLIC Oltawa Asked to Amend Criminal Code and to Permit Dominion--Incor-- porated Companies to Security Frauds Prevention Act Amendments, to Be Adopted by Six Prov-- inces, -- Make "Short-- Selling" Against Client a Civil Offense Day, Time of Day, Exchange Name, Must Be Made Known to Clients; Exchanges Accept Drastic Rules Come Under Provincial J uris d icti o n--Strict Supervision of Listing of Stocks Indicated Ontario's amendments to her Secur-- ity Frauds Prevention Act may be in-- troduced by Colonel Price to the Legis-- 'lature today. With the exception of those concerning "trading," they could not, because of their confidential na-- ture, be revealed in the conference re-- port last night. The trading amend-- ments are as follows: Confersnce recommendations for the regulating of the stock exchanges, which are actually a boiling--down of the best regulations of the New York, Toronto and Montreal exchanges, have already been subscribed to by the two local exchanges. The conference held that it was not expedient at the pres-- ent time to recommend for enactment any spcecific legislation relating to ex-- changes other than certain amendments to the Security Frauds Act, or similar May Be Introduced Today. "22. Every stock exchange shall keep a record showing the time at which each transaction on such exchange took place and shall supply to any customer of any member of such exchange, upon production of any written confirmation of any transaction with any such member, particulars of the time at which such transaction took plz~~, and verification or ctherwise of the mat-- ters set forth in such confirmation. Exchanges Agree. "(#s) he, or "(b) his firm cor a partner thereof, or "(c) the corpcration or a dirsctor thereo?, hes a cirect or indirect interest, if the offect of such sale shall, otherwise than unintentionally, be to reduce the amount of such securities in the hanrds of the broker or under his control in the or-- dinary course of business below the amount of such securitiese which ne should be carrying for all customers, any such contract with a customer shall at the option of such customer be void, and the customer may recover from the broker all moneys paid with interest thereon or securities deposited in re-- spect thereof, and the broker shall be gulity cof an offense. "21. Every broker who has acted as an agent for a customer shall promptiy send or dGeliver to each customer for whom any security has been bought or sold by the broker a written confir-- mation of the transaction, setting forth: "(a) the quantity and description of the security; "(b) the name cof the person or com-- pany from or to whom the security was bought o# sold; "(c) the day, and, in the case of a member of a stock exchange, the half-- hours between which, and the name of the stock exchangs upon which, the transaction took place, and failure, without reasonable ex-- cuse, to comply herewith shall consti-- tute an offense. "20,. (1) Whenever a person, or a member or employee of a partnership, or a director, officer or employee of & corporation, while he or the partner-- )ship or corporation is employed as a "(2) The customer may exercise such cption by & registered lettcr to that effect addressed to ths broker at his address for service in this Province. broker by any customer to buy and carry upon margin any securities of any incorporated or unincorporated company or undertaking either in Can-- ada or elsewhere, therscafter sells or causes to be sold securities of the same company or undertaking for any ac-- count in which eb. 201 ooth "(e) Where brokers hold securities fully paid for by their customers such securities should be segregated and car-- marked as held in trust for cach cus-- tomer owning the same. "(c) In view of the possibility of abuse in the sale to one customer of shares ordered to be sold by another customer of the same broker, the rules and practices as to 'put throughs' and 'cross--sales' to be carefully supervised and controlled. "(d) No member of any exchange to trade with any employer or partner of any other member of any exchange without the written approval of such member, and a monthly statement of any such trading to which consent has been given to be rendered to the con-- senting member and (or) his firm. "(b) Steps should be taken to pro-- vide that a broker trading for another broker shall not purchase or sell the shares traded in from, or to, the broker for whom he is acting. "(f) the company demonstrates that it has already been financed to a degree satisfactory to the exchange. Trading Practices. "II. As to trading practices: "(a) In addition to any lsgislation that may be enacted, the exchangs should take all possible steps to prevent absolutely the practice of trading by brokers, directly or indirectly, against the accounts of their customers, as this practice has been the cause of many of the abuses in raspect of which com-- plaint is made. "(€) all essential information, when ever required by the exchangs from the company before or after listing -- its securities, is furnished, if requested, upon affidavit: *"(c) important changes in the com-- pany's capital, finances, cperations and progress are reported to the exchange as they occur, and upon ths demand of the exchange; "(d) full information is afforded to the exchange from time to time and as required by the exchange as to the al-- lotment, issue, sale and distribution of : vendors stock, and particularly to the: case of mining and coil companies, and' that reasonable restrictions are placed | upon the sale of vendors or poolsd stock where necessary to permit the financing of the treasury of the company; statutes, and amendments to the Crimi-- nal Code and the Dominion Companies Act, provided that the stock exchanges would carry on in such manner as will meet with the approval of the Provinces represented at the conference, and en-- force adequate regulations for the proper conduct of their business and discipline of their members. What the conference believed should be provided for in the by--laws and regulation of the exchanges, if not already in effect, was as follows: "I. As to listing securities for trading: '"'The conference has found that, while upon certain exchanges careful inquiry appears to be made before securities are allowed to be listed, upon certain others the information required does not ap-- pear to be sufficient, nor does the inquiry made appear to b> adequate. "(a) annual meetings are held: "(b) annual and adequate financial statements are sent to shareholders: "The conference therefore recom-- mends that in the latter cases mors careful scrutiny be made and that list-- ing be not permitted or continued, un--