Vendor makes Sham Offer for Free EDGAR Access

[James Love <love@tap.org>]

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TAXPAYER ASSETS PROJECT - INFORMATION POLICY NOTE
Crown Jewels Campaign - EDGAR
August 21, 1995

-    Data vendor holds press conference to announce "free"
     Internet EDGAR service to begin Oct 1, 1995.

-    Service, which will be run by Global Securities Information
     (GSI), Inc, an opponent of a government funded WEB site, is
     only free for 10 minute "view" of data, while printing or
     downloading will be available, as a "value added" service,
     for a fee.  Standard rate is $10 per connection plus $1 per
     minute.

-    TAP will tell the SEC that the GSI proposal will not satisfy
     the SEC's responsibility to provide public access to the
     EDGAR filings.

-    TAP has set up a temporary unmoderated Internet discussion
     list (edgar-action, subscriptions from listproc@tap.org) to
     share information about EDGAR developments.

     by jamie love (love@tap.org, 202/387-8030)
     TAP
                                     
     WASHINGTON, DC -- August 21, 1995.  At a 4 p.m. news
conference, the Washington DC based Global Securities
Information, Inc. ("GSI") announced that it would provide "free"
Internet EDGAR service (FREE LIVEDGAR) to begin Oct 1, 1995.  GSI
officials hope that this offer will deter the SEC from providing
its own government funded free Internet dissemination program. 
The problem with the GSI proposal, however, is that the limits on
the free access are extremely restrictive, and the plan is little
more than a commercial for the more functional "value added"
service that GSI sells.  Among the problems:

-    Access will be limited to 20 users at one time.

-    Users will be required to use proprietary GSI software.

-    The "free" access will be limited to 10 minute sessions,
     with NO downloading or printing of data.*

-    Downloading or printing of data will be considered a "value
     added" service, available from GSI for a fee.  The standard
     rate is $10 per connection plus $1 per minute.

     In essence, GSI says it will provide a very limited browsing
service, and them charge hefty fees for anyone who wants to
download or print the data.  GSI officials are trying persuade
the SEC that this very limited service would satisfy SEC Chairman
Arthur Levitt's recent promise that "the Commission is committed
to ensure that EDGAR filings are accessible to the investing
public on the Internet."  At today's press conference, last
monday's EDGAR conference, and in other forums, GSI has
complained bitterly about having to "compete" against a "taxpayer
supported" free Internet service.  For more background on GSI,
check out their rather limited web site
(http://www.gsionline.com).

     The SEC is trying to decide what it can do to keep the
present Internet EDGAR service available to the public.  Carl
Malamud, the wizard behind the Internet Multicasting Service
(IMS), has offered to loan the SEC the computers and other
hardware needed to run the current Internet service, and provide
the SEC with free training and software.  Apparently the service
can be run by a single new staff position, and would cost the SEC
less than $200,000 per year (compared to more than $60 million
per year to "collect" the information for the full disclosure
program), plus the cost to the SEC of buying its down data back
from LEXIS (the firm which has a contract to "sell" the EDGAR
data for the SEC).

     Several commercial vendors, like GSI, are expected to make
pitches to the SEC for "private sector" solutions to the
dissemination program, which involved any number of strings or
limits to the public access.  GSI and some of the less innovative
data vendors saw the IMS/NYU free EDGAR Internet dissemination
project as a threat to their fee based commercial services.

     WHAT YOU CAN DO

     TAP is setting up a temporary unmoderated Internet
discussion list (edgar-action, subscriptions from
listproc@tap.org) to share information about EDGAR developments. 
To subscribe, send at note to listproc@tap.org, with the message: 


     subscribe edgar-action yourfirstname yourlastname

     You should also contact the key members of the SEC and
Congress who are going to make decisions on this issue.  Let them
know, for example, what you think of a "free" Internet service
that will require proprietary software, and will not allow
downloading or printing of data.  Remind them also that EDGAR is
a database of public records, which you have alread paid $60
million per year to collect.  TAP suggests that you send your
thoughts by fax to the following persons.

Chairman Arthur Levitt (via fax:  202/942-9646)
Commissioner Steven Wallman (via fax: 202/942-9563)
Securities and Exchange Commission
Washington, DC 20549

Congressman Dan Frisa   (via fax:  202/225-3187)
U.S. House of Representatives
Washington, DC 20515

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