The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-04-01
STRONGER BILL
AGAINST STOCK
FRAUDS SOUGHT
Efforts Expected to Widen
Scope of Securities
Control Measure.
BY RUTH FINNEY
Times Special Writer

WASHINGTON, April AT
tempts to broaden greatly the scope
of the administration securities bill
will be made in both houses of con-
gress before a final vote is taken.
These follow three general lines,
as follows:
One proposes that the federal gov
eminent take fro mthe states power
to incorporate all interstate bust
neSSes.
The second would give the federal
government power to license cor
porations engaging in interstate
commerce, and to write into all
licenses certain regulatory con-
ditionS.
The third would concern only the
requirement contained in the pend
ing bill for full publicity for COM
panies proposing to sell securities in
interstate commerce, but would
tighten up the requirements and put
more teeth into the administration
measure.
Must Register With U. S.
1t is probable that only changes
Of the sort proposed by the third
group will be recommended by the
senate and house committees con-
sidering the bill The other pro-
posals will be offered from the floor
under present plans.
Advocates of federal incorporation
argue thatit would benefit business
men as we'll as the public generally,
by protecting corporations against
reStrictiveand discriminatory Iegis-
lation by the states: and that it
would be better for the federal gov
eminent to say in the beginning
what sort of organization shall en-
gage in interstate commerce, rather
than engage in litigation later to
protect the public interest.
The administration bill simply
requires that each corporation reg
lister with the federal trade COM
mission, filing a statement showing
the company's assets and liabilities
and its profits and loss during the
preceding year.
Covers All Securities
Data about the nature Of the is
sue, the price at which it is offered
to thepublic, the net amount to be
returned to capital investment, the
maximum amount of commission
and other details, also must be filed
The act also makes it unlawful
in any sale or promotion of securi-
ties to resort to fraud or false pre-
tense, and directs the trade commits
sion to call such cases to the at
tention of the encouragement.
While members of congress dis
puted at their first hearings as to
whether the measure as drawn
would cover securities already is
sued as well as those hereafter
issued, it was learned on high au-
thority that the administration in
tends the measure to apply to all
present securities that hereafter
may be offered for sale.
Trade Commission to Continue
In whatever form the bill finally
passes, it guarantees the federal
trade commission will continue to
exist as an independent agency, in
the opinion of those who oppose
abolition of that body or transfer
of its functions to political control
Even in its present form the
measure conveys on the commission
far more extensive duties than any
it has performed so far.
An indication of the amount
which may be saved to American
investors by federal control of Sc
curities is found in testimony of
Walter R. Miller, chief of the
foreign loan division Of the COM
merce department, that half of the
fifty billion dollars of securities pur-
chased by the public between 1919
and 1888 were worthless.