that they are not able to employ necessary accountants with the small fee allowed; and that their case now pending in the court is not as simple as was first thought. It has been for some time the policy of the Congress and of this department not to require of attorneys in such cases the limit of $25,000 on their fees, but to permit the court to fix a reasonable fee of not to exceed 10 per cent of the amount recovered. We would therefore have no objection to removing the limitation mentioned.

It is suggested that the bill be amended as follows:

Page 2, after the word "Indians" in line 7 add the following:

'Provided, That the balance of such judgment shall be placed in the United States Treasury to the credit of the Indians entitled thereto, where it shall draw interest at the rate of 4 per centum per annum; and shall be thereafter subject to appropriation by Congress for educational, health, industrial, and other purposes for the benefit of said Indians, and no part of said judgment shall be paid out in per capita payments to said Indians."

Should the foregoing amendment be made in the bill, it is recommended that it receive favorable consideration. C. J. RHOADS, Commissioner.

Mr. JOHNSON, from the Committee on Commerce, submitted the

following

REPORT

[To accompany S. 3908]

The Committee on Commerce, to whom was referred the bill (S. 3908) to amend title 33, chapter 4, section 252, paragraph (a), of the Navigation Rules for the Great Lakes and Their Connecting and Tributary Waters, having considered the same, report favorably thereon, and recommend that the bill do pass without amendment. The bill has the approval of the Department of Commerce, as will appear by the annexed communication, which is made a part of this report.

The PRESIDENT OF THE SENATE,

Washington, D. C.

Department of COMMERCE,
OFFICE OF THE SECRETARY,
Washington, February 27, 1932.

MY DEAR MR. PRESIDENT: There is transmitted herewith draft of a proposed bill amending title 33, chapter 4, section 252, paragraph (a) of United States Code, reenacting paragraph (a) of rule 3. This legislation is needed in view of the low clearance under fixed bridges on certain canals, and the department recommends that the bill be enacted into law during the present session of Congress. As no additional personnel or expenditure of public funds is involved in this legislation, it has not been deemed necessary to secure the approval of the Bureau of the Budget.

Very truly yours,

72D CONGRESS 1st Session

SENATE

{

REPORT No. 412

PREVENTION OF FRAUD IN PROMOTION OR SALE OF SECURITIES IN THE DISTRICT OF COLUMBIA

MARCH 10, 1932.-Ordered to be printed

Mr. BLAINE, from the Committee on the District of Columbia, submitted the following

REPORT

[To accompany S. 3362]

The Committee on the District of Columbia, to whom was referred the bill (S. 3362) to prevent fraud in the promotion or sale of stock, bonds, or other securities sold or offered for sale within the District of Columbia; to control the sale of the same; to register persons selling stocks, bonds, or other securities; to provide punishment for the fraudulent or unauthorized sale of the same; to make uniform the law in relation thereto, and for other purposes, having considered the same, reports favorably thereon and recommends that the bill do pass with the following amendments:

On page 9, in line 19, after the word "of," insert the following: "the District of Columbia or the United States or of any State". On page 22, in line 13, strike out "$20" and insert "$5". On page 26, in line 9, strike out "$20" and insert "$5".

NEED FOR LEGISLATION

The present report of the committee, urging enactment of the bill, embodies the findings of its subcommittee on insurance and banks. In the Seventy-first Congress this subcommittee, under the authority of a Senate resolution (S. Res. 58), conducted a searching scrutiny of the operations of promoters and sellers of so-called securities in the District of Columbia, in connection with a thorough inquiry into realestate transactions and the foreclosure of mortgages or deeds of trust.

The subcommittee developed the fact that within the past six or seven years there have been issued in or sold from the District a great quantity of these securities, largely consisting of mortgage bonds or notes, in an amount approximating $100,000,000-a very considerable portion of which are of highly dubious value, and in some cases utterly worthless.

SR-72-1-VOL 1-46