Page:United States Statutes at Large Volume 49 Part 1.djvu/874

 74TH CONGRESS. SESS. I. CH. 687. AUGUST 26, 1935 . 829 scribed or such as may be approved by the Commission, or to keep his or its accounts, cost-accounting procedures, correspondence, mem- oranda, papers, books, or other records in any manner other than that prescribed or approved by the Commission. (f) All accounts, cost-accounting procedures, correspondence, memoranda, papers, books, and other records kept or required to be kept by persons subject to any provision of this section shall be subject at any time and from time to time to such reasonable periodic, special, and other examinations by the Commission, or any me mber or rep resent ative there of, as the C ommis sion m ay pre scribe. Th e Comm ission, afte r noti ce and oppor tunity for h earing, may prescribe the account or accounts in which partic ular outlays, re ceipt s, and othe r tran sacti ons s hall b e. entered, charged, or cr edited and the manner in which such entry, charge, or credit shall be made, and may r equire an entry to be mo dified or supplemented so as properly to show the cost of any asset or any other cost. (g) It shall be the duty of every registered holding comp any and of every subsidiary company thereof and of every affiliate of a com- pany insofar as such affiliate is subject to any provision of this title or any rule, regulation, or order thereunder, to submit the accounts, cost-accounting procedures, correspondence, memoranda, papers, books, and other records of such holding company, subsidiary com- pany, or affiliate, as the case may be, to such examinations, in person or by duly appointed attorney, by the holder of any security of such holding company, subsidiary company, or affiliate, as the case may be, as the Commission deems necessary or appropriate in the public interest or for the protection of investors or consumers. (h) It shall be the duty of every mutual service company, and of every affiliate of a mutual service company, and of every person whose principal business is the performance of service, sales, or construction contracts for public-utility or holding companies, inso- far as such affiliate or such perso n is subject to any prov ision of this title or any rule, regulation, or order thereunder, to submit the accounts, cost-accounting procedures, correspondence, memoranda, papers, books, and other records of such mutual service company, affiliate, or person to such examinations, in person or by duly appointed attorney, by member companies of such mutual service company and by public-utility or holding companies for which such person performs service, sales, or construction contracts as the Com- mission deems necessary or appropriate in the public interest or for the protection of investors or consumers. (i) The Commission, by such rules and regulations as it deems necessary or appropriate in the public interest or for the protection of invest ors o r cons umers may pr escri be for perso ns su bject to the provisions of subsection (a), (b), (c), or (d) of this section uniform methods for keeping accounts required under any provision of this section, including, among other things, the manner in which the cost of all assets, whenever determinable, shall be shown, the methods of classifying and segregating accounts, and the manner in which cost -accou nting proce dures shall be mai ntain ed. LIABILITY FOR MISLEADING STATEMENTS SEC. 16. (a) Any person who shall make or cause to be made any statement in any application, report, registration statement, or docu- ment filed pursuant to any provision of this title, or any rule, regu- lation, or order thereunder, which statement was at the time and in the light of the circumstances under which it was made false or misleading with respect to any material fact shall be liable in the Examination of ac- counts and records. Submission of ac- counts and records to examination ; bo ld in g and subsidiary com- panies and affiliates. Mutual service com- p ani es. Persons performing service, sales, or con- struction contracts. Uniform methods of keeping accounts. Misleading state. ments. Liability for.