Evening star., 1933-05-06
CONGRESS ENJOYS
REST AFTER RUSH
House Plans Vote Monday
on Farm Guarantee.
Relief Speeded.
Continued From First Page.)


House came after five hours debate and
under procedure which prohibited any
but committee amendments. Senate
approval virtually is assured.
Under the measure, drafted by Chair
man Rayburn of the Interstate Com
merce Committee, issuers Of new Sc
curities will be required to lay before
the Trade Commission complete infor-
nation on their corporate structure,
finances, personal, tangible and intan-
gible property. Violators and promoters
of fraudulent issues would be held both
civilly and criminally liable for viola
tions.
Opening debate on the measure, Ray
burn said billions in worthless securities
had been sold in this country since the
World War period He said there were
100000 security investors In this
country and the bill was designed to
protect them.
This bill is drawn to enable would
be purchaser of bond or of a share
of stock to require some information
from the officials of the issuing COM
pany," the Texas Democrat said. Tho
purpose Of this legislation is to place
the purchaser of securities on parity
with the issuer.
Points to Huge Losses.
1--WE demand of the seller that he
give full and complete information
with reference to the security offered,
under penalty of both civil and GRIM
inal liability il he evades or conceals
material facts. If the buyer Is wise
man he will also beware.
I'm this bill we demand not only a
new deal, we also demand a square
deal"
Rayburn said the loss to investors
amounted to nearly a third Of the
total national wealth Of $3.50. .000, ,000,-
900, and was brought about through
leadership that the average investor
had right to believe he could trust"
These securities were peddled among
the people by firms like Halsey Stuart
g. Co. of Chicago, and by great flnan-
cial houses like the National City Bank
of New York. he asserted.
Assailing promoters of the securities,
Rayburn said few men, proud, arro-
CANT and blind drove the country to
financial ruin" and added:
Some Of them are fugitives from
justice in foreign lands; some Of them
have committed suicide; some Of them
are under indictment; some of them are
in prison: all of them are in terror
Representative Beck, Republican, OF
Pennsylvania, said the whole corporate
life of this country Is rotten to the
core" He opposed, however, giving
regulatory power to the Federal Trade
Commission, which he said was "the
most pretentious humbug of all the
bureaucratic agencies in Washington"
Representative Cannon, Democrat, Of
Wisconsin, said he understood bankers
were exempt from the provisions of the
act.
II am sorry they have been taken
cut of the bill" he said. THE most
colossal gigantic crooks ever in this
Nation have been the big bankers"
Rayburn told Cannon he was mis-
taken.
Denies Exemptions.
Nobody is exempt" Rayburn said.
THE securities issued by the banks
themselves are exempt because we leave
that to the Federal and State bank
examiners. But when the banker sells
any other securities, he's just as re-
sponSible as anybody else"
Senator Glass talk with Secretary
Wcodin on his bank reform bill resulted
from a conference Thursday between
President Roosevelt and his advisers and
the Senate subcommittee. at which the
Treasury head is reported to have urged
delay.
President Roosevelt is authoritatively
said, however, to have renewed pre-
vious assurance to the Virginia Sen
atcr that he would push for action on
the bill at this session of Congress.
Despite this assurance friends Of the
legislation fully realize that with the
President and leaders anxious to bring
the special session to a close early in
June the bank bill hardly could sur
viye a prolonged filibuster such as
greeted it in the Senate last Winter.
Glass is understood to have resisted
stcutly in his conference with Woodin
any changes which he considered went
to the heart of his bill, designed to
curb the use of Federal reserve credit
for speculative purposes and divorce in
vestment from commercial banking.
No material alteration has been made
in the controversial deposit insurance
proposal beyond postponing its effective
date for year.
The fund would insure deposits I'D
20 $4,000 completely, IS per cent of
deposits from $4,000 to S50,0O0 and
so per cent Of deposits over that
amount.
To capitalize the fund, the Treasury
would subscribe Sl50,000,O00, Reserve
Banks about the same and member
banks cne-half Of per cent of their
deposit liabilities. In addition, the
fund would have a borrowing power of
twice its capitalization.