The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-03-29
ACT RENEW
CONFIDENCE IN
INVESTMENTS
Roosevelt Urges Congress
to Give Security Buyers
Protection.
BILL is INTRODUCED
Drastic Control of Stock
and Bonds Sales Will
Be Provided.
BY FREDERICK A. STORM
United Press STAFF CorrespOndent

WASHINGTON, March 29.-Pres-
ident Roosevelt called upon congress
today to restore public confidence in
investment securities by correcting
abuses which have cost Americans
billions of dollars.
AS soon as reading of the Pres
ident'S message was completed
legislation setting up drastic control
of securities sales by providing for
full publicity regarding the hackers
and their claims, was introduced
by Senate Majority Leader Robin
son.
1t was referred to the judiciary
committee. The interstate com
merce committee will handle it in
the house.
The bill would set up rigid
control of securities sales, admin
istered by the federal trade com
mission. All advertising, both
through the printed rod OF by radio.
would be prohibited until vital in
formation regarding the financial
conditions of the promoters of
either foreign or domestic securities
is filed with the commission.
Huston Thompson Drafts Bill
This information relates to CAPT.
talization, dividends, profits, funded
debt, assets and liabilities, the is
suers' income, expenses and fixec
charges during the preceding year
bonuses and capital investment.
Disclosures during the senate
stock market investigation played
an important part in framing the
drastic new regulations.
Huston Thompson, who as chair
man Of the federal trade commits
sion a decade ago, frequently at
tackled unethical business practices
helped in drawing up the legisla-
ton.
Mr.. Roosevelt revealed in his
message that this program was but
one step in our broad purpose of
protecting investors and depositors. .
Other legislation relating to super
vision of exchange transactions and
Ito correct unethical and unsafe
practices on the part of officers and
directors of banks and other corpo-
rations," will follow.
Urges Full Supervision
The President recommended fed.
eral supervision of interstate traffic
/ in securities and said:
In spite of the many state
statutes the public in the past has
sustained severe losses through
practices neither ethical nor honest
on the part of many persons anc
corporations selling securities"
What we seek" he continued il
his 300-word message, lis a return
to a clearer understanding of tn,
ancient truth that those who man
age banks, corporations and othe
agencies handling or using othe
peoples money are trustees actin,
| for Others"
Mr.. Roosevelt made it clear thai
the federal government can no
and should not take any actor
which might be construed as ap-
proving Or guaranteeing that newly
issued securities are sound in the
sense that their value will be main
tanned or that the properties which
they represent will earn profits.
Seventh Message to Congress
There is, however" he continued
AN obligation upon us to insist thai
every issue Of new securities to be
sold in interstate commerce shall
be. accompanied by full publicity
and information, and that no essen
TALLY important element attending
the issue shall be concealed from
the buying public"
1t was the seventh message Mr.
Roosevelt has sent to the specia
session of congress since it convened
three weeks ago Already three ma.
jor pieces of legislation have beer
enacted into law-the emergency
banking act, the economy act anc
the VolStead act modification.
Farm relief and unemployment
bills are pending in congress, witt
prospects of early enactment