Evening star., 1933-04-07
Roosevelt Securities Curb
Appraised as Needed Force

Benefits are, expected by the public
from the legislation asked by President
Roosevelt for the purpose of regulating
| sale OF securities in interstate COM
| merce. His message and bill open q
broad field for discussion, including at
tention to- present State laws on the
subject, the increase Of confidence In
securities, and even the possibility OF
more business in corporation issues.
Emphasis Is placed on the President S
thought that the old rule, LET the
buyer beware" should be extended py
requiring that the seller have equal re-
| sponSibility. Publicity about business
companies involved would be required,
under supervision of the Federal Trade
Commission.
The Rockford Register-Republic sees
the application Of IAN obligatory
Golden Rule" while the thought that
the buyer must still exercise prudence
Is voiced by the New Castle News and
the Goshen News-Times. The Wall
Street Journal calls the program
wholesome in intent, whatever i'm
perfections of drafting may be cor
rected," and the Louisville Courier
Journal looks to stopping of the prac-
tice of selling securities as a pig in a
poke"
The limitation to interstate COM
merce Is described by the Los Angeles
Times as more apparent than real,
since any securities will normally be
sold in interstate commerce, and If any
are not 80 offered, 1t viii be ground for
suspicion" On another phase of the sit
uatlon, the Uniontown Herald thinks
tnat care will have to be taken that
publicity Is not misinterpreted as a Fed
eral guaranty Of validity" The Jersey
City Journal concludes: Honest banks,
honest corporations, honest brokers,
VIII not fear the new law. Crooks will"
the Nashville Banner points to benefits
from 'the determination Of the admin
1stration to protect the people of the
country. and the great body of honest
ana law-abiding bank officials from the
disastrous consequences and distrust in
evitable in the misconduct of the few"
The restraint to be brought to bear on
unethlcal practices Is emphasized by
the Danbury ews-Times, the Asbury
Park Evening Press. the Youngstown
Vindicator and the Rock Island Argus.
The insistence upon the truth about
securities is the new note in the Roose-
velt proposal" says the Chicago Daily
News, while the Newark Evening News
states that 1t holds the promoter and
the huckster of the securities re-
oPoilolplc uilduClhlly dIlQ Otll6TWlSe IOr
the fidelity of the description given
to the facts" The Indianapolis
News contends: Ambiguous, If not ac-
tually misleading annual corporate re-
ports, meaningless to any one but en-
expert, should be replaced by a set
form. The net effect on the conduct
of corporations should be welcomed by
all responsible business leaders" The
Toledo Blade quotes from a prediction
made by the President in California
last Fall that such legislation would
put the great American promoter out
Of business"
There may be no gold in the mine"
comments the New York Sun, ''but the
promoter Of the mining stock must
satisfy the Government that he has
reason to believe that there Is, and that
his venture IS something better than
the exploitation Of easy marks" The
Rochester Times Union points out that
there Is . wide difference between SELL
ing fraudulent securities and specula-
tive ones" and that what the pro-
posed laws would do Is to eliminate the
fraud as far as possible" That paper
finds 1t necessary that "the investor
should be assured that when new issues
are made the information given him
Is reliable" The Topeka Daily Capital
concludes that IF the matter is handled
constructively. the new prosperity.
when it comes, win be more soNdly
grounded than in the past"
4 protest comes from the Baltimore