The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-12-25
SECRET FARLEY
Barred IN CURB
OF STOCK BOARD
Exchange Chiefs Slipped
Into Discussion of Regu-
Iatory Bill.

By Scripps-HoUGrd Newspaper Alliance
WASHINGTON, Dec. 25.-Rich-
ard F. Whitney, president Of the
New York Stock Exchange, and his
board of governors came here re-
Gently for a secret conference with
the special Roosevelt administration
committee appointed to draft bill
for regulation Of the stock market,
it has been revealed here.
Mr.. Whitney and his associates
are said to have protested against
various regulatory proposals being
considered by the committee, which
Is headed by Assistant Commerce
Secretary John Dickinson, but to
have left convinced that the admin
istration is going to push through
congress a measure which will ex-
tend the arm of the federal govern
ment over stock exchanges.
The meeting was surrounded with
great secrecy. Precautions were TAX
en- to conceal the visit of Mr.. Whit
ney and he was Slipped" into the
meeting at Assistant Secretary
Dickinson's Office, along with his
board
Opposes Changes
The stock exchange head is said
to have maintained firm opposition
to various reform proposals, stand
ing on his position that the ex-
change is capable Of governing it
self. However, he revealed himself
willing to make some few conces-
sions when he saw that the wind
was definitely set toward govern
ment supervisors.
Outstanding among these was a
statement that the stock exchange
could stand" a restriction on mar
ginal trading requiring up to so per
cent actual cash outlay for buying
stocks on margin, it is understood
The limitation now is 80 per cent.
This Is to eliminate such shoe
string" speculation as lured thou
sands of persons of small means
into the boom market of 1928 and
1929.
The administration committee, ap-
pointed several weeks ago by Sec
rotary of Commerce Daniel G. Roper,
has prepared several drafts of pro-
posed bills, it was learned today, but
there is disagreement among the
five members of the committee on
various points. Likewise, there are
points Of disagreement between this
committee and members and experts
of the Senate banking committee,
which soon will begin its inquiry
into the stock market, as to the
scope of federal regulation.
Roosevelt May Act
The administration committee re-
Gently has been marking time, and
1t appears likely that President
Roosevelt may have to stir it up
and intercede personally to produce
an agreement, or else depend upon
congressional advice. The Presi-
dent is said to be determined to
have legislation and is expected to
outline his general views in his
message to congress.
Beyond restrictions upon mar
ginal trading-or its outright aboli-
tion-basic principles of the bill
now being considered include pub
licity of pool or syndicate operations
and establishment of a federal
agency to supervise stock market
operations just as the federal trade
commission watches securities.
There is a difference Of opinion as
to the setup of the federal agency.
Some members of the committee
would utilize the federal trade COM
mission for this purpose.
Differ on Methods
Others would create a special
board, similar to the code author
tiles set up under NRA, upon which
the stock market would be repre-
sented. Mr. Whitney is said to have
expressed a strong preference for
such a board, but sentiment among
congressional leaders who are con-
cerned with stock market reform
veers toward trade commission reg
ulation.
There also IS division Of opinion
about publicity of pool or syndicate
operations, some taking the position
that good pools" formed for the
purpose Of creating valid interest
in sound stocks should be exempt
On the other hand it is argued that
publicity, if required. would have to
cover all operations, and that good
pools" should be able to stand the
light.
The type Of publicity being con-
Sidered is registration Of all pool,
syndicate and joint trading account
agreements.
Other members of the administra-
ton committee are A. A. Berle,
formerly of the administration
brain trust and soon to be
attached to the LaGuardia admin
iStration in New York; Arthur Dean,
New York lawyer; Henry Richard
son, Washington lawyer, and James
NJ. Lands. member Of the federal
trade commission.