Evening star., 1934-03-25
THOMPSON SCORES
REVISED BILL FOR
MARKETS CONTROL
Chief of Associated Stock
Exchanges Sees Threat
to Recovery.

Eugene E. Thompson of this city
president Of Associated Stock Ex-
changes, scored the redrafted bill to
control all stock exchanges, before
both committees in Congress yester-
day, after saying he did not consider
the amended bill amy better or any
worse than the original"
He declared the Associated Stock
Exchanges are not opposed to a bill
that takes into account only those
features and phases of the business
Of handling corporate securities which
are in need of and are susceptible tc
regulation.
But we do not favor a law which
places in the hands of a Federal
agency the power and the means OF
controlling absolutely and minutely
the business of the country" Mr.
Thompson declared.
There will be an immediate reces-
sion Of business with the advent OF
this legislation, the witness added
There will be defiation and there
will be credit chaos.
Cites Drift to Canada.
"You have all read in the papers
That within the last few days stock
exchange memberships at Montreal
and Toronto, in Canada, have in
creased ia value, while seats on the
New York and other exchanges In
our own country have been quoted on
basis of a greatly reduced valua-
ton"
Mr.. Thompson asserted that it i:
unfair to force upon a broker OF
dealer the obligation of borrowing
through member Of the Federal Re-
serve System 1t is likewise unfair tc
banking institutions which are not
members of the Federal Reserve Sys-
tenn to take from them the privilege
and opportunity of making such loans
At another point in his testimony
he said: 1T should be understood
that brokers who now act as special
lists do not devote their entire time
to that line of activity. They act as
specialists in certain classes of Sc
curities only, and this occupies usu-
ally merely a small portion of their
time. The rest of the time they act
of course, as brokers. Due considera-
tion should be given to this class OF
business, which apparently was not
clearly understood by the trainers OF
the bill.
Fears Destruction.
ut is quite evident that what has
been developed into publicly quoted
market for certain unlisted securities
will be destroyed unless the commits
sion is given authority to extend the
time until Congress has had an op-
portunity to act upon the recommen-
dations.
I'VE submit that the business OF
selling securities should not be SUBJ
jected to any more outside examina-
tionS than other lines of business" he
concluded. THE expense for income
tax information and other reports is
already a burdensome charge upon
the business, and to levy further
charges for additional examinations
is beyond the realm of fairness. The
exchanges are amply able themselves
to cover the matter Of examinations
and have always been foremost over
other lines of business in such efforts
1--WE wish again to go on record as
favoring a co-ordinating authority ir
which the stock exchanges shall have
a voice in their own management. 1t
is our belief that any regulatory body
made up entirely of those not repre-
sentative of the stock exchanges can
not and will not function in a way
that will be to the best interests oi
the public and certainly not to the
best interests of the stock exchanges. '