President Roosevelt stated in his message to Congress concerning the eventual Securities Act of 1933: "The purpose of the legislation I suggest is to protect the public with the least possible interference to honest business." In the recent cases of Escott v. BarChris Construction Corp. and Globus v. Law Research Service, Inc., conduct by investment bankers deemed by the courts not to yield the fullest possible disclosure to securities investors was held in violation of the Securities Act. Little consideration was given to the question of "interference with honest business." In examining these decisions with reference to securities underwriters, in four critical areas, this note seeks to establish a standard of conduct for underwriters which would yield investor protection through disclosure while reflecting the needs of honest business.

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