APPENDIX 
5723 
[NVESTMENTS 
The applicant shall publish with the annual report a statement showing 
‘he value of securities held either directly or indirectly at the close of 
each period covered by the report. Valuation of securities for this state- 
ment shall be based upon market price of all securities listed on recognized 
stock exchanges and upon fair appraisal of other securities. There must 
be contained in the report a complete list of all of the holdings of the 
company showing names and quantities with the proviso that no more than 
an amount of ten (10%) per cent of the company’s aggregate capital and 
surplus or ten (10%) per cent of the cost of securities held, whichever may 
be less, may be covered under a heading “Miscellaneous Securities,” pro- 
vided that such securities have not been held for more than one year. This 
list should disclose the aggregate cost of the securities and their aggregate 
market value, and in the case of holdings not listed on the New York Stock 
Exchange or the New York Curb Market, the price at which each such 
holding has been inventoried for the purpose of determining aggregate 
market value must be clearly set forth with such supporting information as 
may seem desirable. 
AUDITORS CERTIFICATE 
There must be appended to all financial statements and inventories re- 
quired by the Committee, the certificate of a public accountant, qualified 
under the laws of some state or country, which certificate shall contain a 
statement that no one of the items carried under the term “Miscellaneous” 
in the list of Investments has been held for more than one vear. 
SUBSIDIARIES 
In case the investment trust holds, either directly or indirectly, a 
majority interest in the voting stock of another company at the time of 
any earnings report, such other company shall be considered as a subsidiary. 
Each balance sheet and earnings statement shall be presented in one of the 
following forms: 
I. A fully consolidated balance sheet and earnings statement, prepared 
in such manner as to include each subsidiary, as defined above, and also 
ro show any minority equities in both earnings and assets. Securities owned 
by each subsidiary shall be presented separately, as indicated under the 
requirement entitled “Investments.” 
2. Separate earnings statements and balance sheets for each subsidiary, 
together with a separate tabulation of the securities of such subsidiary, in 
accordance with the requirements entitled “Balance Sheet” and “Invest- 
ments.” In case this aiternative is adopted the valuation, assigned upon 
applicant’s Balance Sheet to its equity in such subsidiary or subsidiaries 
should be shown separately and should not be greater than the cost thereof. 
In any statement as to the market or appraised value of such subsidiary 
company securities, as carried upon the parent company’s books, the appraised 
value should not be greater than the book value of such equity as deter- 
mined from the books of such subsidiary, valuing the securities held by 
‘he latter at not more than cost for this purpose.