Evening star., 1933-11-04
WATCH IS URGED
FOR WALL STREET
Senate Committee Is Consid-
ering Permanent Body to
Scan Dealings.
By the Associated Press.

BY the Associated Press
Creation of permanent Senate COM
mittee to keep constant watch over
Wall Streets operations is being con-
sidered seriously by members of the
Stock Market Investigating Committee
and may be recommended in their final
report
With the present inquiry nearing its
scheduled end. Senators on the COM
mittee said today they realized it would
be impossible to write legislation to pre-
vent repetition of the evils they have
found and that indefinite extension Of
the investigative powers would be de-
sirable.
1t is not their idea that the commit
tee should be in continuous session. but
that it should have the authority when
ever the occasion arose to inquire into
specific cases.
The suggestion is being considered
in view of plans to wind up the inquiry
by the end of this year. There is some
doubt that the work can be finished by
then.
Cannot Eliminate Abuses.
Many legislative reforms probably
will be recommended to the Senate at
that time committee members said.
They added. however. that these
nate, permanently and finally, abuses
in banking and stock exchange
Some committee members said a per-
manent Senate committee could recon-
mend legislation to curb abuses as they
arose, and have a powerful effect in
developing because of fear of exposure
Chairman Fletcher approved the
idea.
Promoters are always energetic and
wide awake" he said. Every time We
close one door they open another.
Such a committee would have a
restraining influence"
Senator Couzens, Republican, Of
Michigan, also is giving favorable con-
sideraticn to the plan.
"I think it would be desirable to
have permanent authority for the
chairman to summon the committee
for specific inquiry at any time, "
Couzens said
Appear TO fuD1c OplnOn
II don't think it is possible to enact
legislation that a smart lawyer can't
shoot full of loopholes. l think the
best appeal is to public opinion and
there is no doubt that this investi-
cation has Wall Street scared.
Legislation can't do the job. but
tigation would supplement the securi-
ties act"
Other committee members have not
committed themselves, but Senator
Townsend. Republican, of Delaware,
said he thought an inquiry every year
o. SO would be worth the money.
Senator Goldsborough, Republican,
Of Maryland, said another inquiry in
two or three years would disclose
whether undesirable practices had been
eliminated
Chairman Fletcher said yesterday he
was studying means to prevent di-
rectorS of corporations from using in
side information in their personal
stock transactions to the disadvantages
CT their companies and the public.
In disclosing his move. the Florida
Senator cited evidence before his COM
chairman of the Chase National Bank,
the Brooklyn Manhattan Transit Co..
sold huge blocks of stock in the latter
company just before it passed divi-
dend
Fletcher said the problem presented
many difficulties because of the ques-
ton of Federal jurisdiction, but ex-
pressed the belief that it might be met
through control of the stock exchanges
Seek to Prevent "Unloading."
One suggestion which has been made
| line is that directors of companies
listing their securities on the exchange
be required to publish transactions in
| those stocks.
In this way, Fletcher explained, the
| public would at least know when the
directors of a corporation were selling
its stock and in most cases it probably
would prevent unloading"
| Il think we can get some control
over that he added. 1T is desirable
and it may be possible to work it out
though where the corporation is not
doing an interstate business We may
have to leave it TO the States"
Evidence before the committee
showed Wiggin, who was chairman o1
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