APPENDIX 
531 
(IVg) The Stock Exchange tries whenever possible to obtain the 
consent of applicant corporations to publish their earnings on a 
quarterly basis, in order more frequently to give the public a notion 
of the proper current value of their securities. This is not, however, 
always possible. Some companies are engaged in lines of business 
which are seasonal, and which might normally show losses in certain 
quarters and huge offsetting profits in others; such concerns are apt 
to claim that quarterly earnings only mislead investors and lead to 
unnecessary speculation. Other companies declare that ‘quarterly 
sarnings can be too easily manipulated (as, for example, with “special 
bargain sales” by dry goods stores), and that also this full disclosure 
of information would place them at a disadvantage with competing 
non-listed concerns who issue infrequent earning statements, or none 
at all. Foreign companies sometimes are compelled by virtue of the 
foreign statutes under which they were incorporated, to issue earning 
statements not oftener than once each year. Finally, the insistence 
by the Exchange on quarterly earnings has been a gradual evolution, 
and many old companies listed their securities years ago when their 
agreements with the Exchange thereto called for only annual or semi- 
annual earning statements; in such cases, of course, the Exchange 
cannot attempt to repudiate such agreements and substitute for them 
others calling for quarterly earning statements. These may be, in 
particular cases, valid and genuine difficulties in the way of uniformity. 
Yet they have not discouraged the Exchange from requiring quarterly 
earning statements unless good reason can be shown by the applicant 
for leniency in his particular case. It is also gratifying to record 
the hearty cooperation which the Exchange has received, in its long- 
continued campaign for more extensive corporate publicity, from some 
enlightened and progressive American companies like the U. S. Steel 
Corporation, which has gone further in this regard than the standard 
listing requirements of the Exchange could do. 
(IVh) 
Resolution 
REsoLvEp that application to be made to the New York Stock Exchange 
ior the listing of...... cw 
of this corporation and that.................. __ ___.....be designated by 
the corporation to appear before the Committee on Stock List of said 
Exchange, with authority to make such changes in said application, or in 
any agreements relative thereto as may be necessary to conform with re- 
quirements for listing.