Evening star., 1934-05-13
STOCK BILL MUST
CO TO CONFERENCE
FOR FINAL ACTION
Measure, Passed by Senate,
Places Market Under
Federal Control.
COUNSEL FOR EXCHANGE
IN GALLERY FOR DEBATE
Conservative Republicans Prom
ised Proposals Will Be Given
Consideration.
BY the Associated Press.

BY the Associated Press.
The Stock Exchange control bill
placing virtually every phase of the
securities business in the grip of gov
ernmental regulation, was approved
81 to l3, yesterday by the Senate.
Attached were amendments adopted
in response to the contention of or
ganized business that the securities
act of 1888 was strangling recovery
by preventing a free flow of capital
into the tagging heavy industries.
These proposals, offered by Chair
man Fletcher of the Banking Com
mittee with administration approval
would place extensive limitations
upon the liabilities which the original
act provided for the issuers and un-
derwriters of faulty securities.
The bill now goes to conference for
the settlement of several outstanding
differences between the Senate and
House bills, including the amend
ments to the securities law, no refer
ence to which was contained in the
House measure.
Plea for Liberalization.
Debate on these changes brought
a plea from conservative Republicans,
led by Walcott of Connecticut, Kean
OF New Jersey and Hastings of Della
ware, that while the proposals were
in the right direction they did not
sufficiently liberalize the present law
Kean offered the British companies
act, intact, as a substitute for the
Fletcher amendments, but his propo-
sition was rejected without a record
vote. Walcott proposed to substitute
long series of amendments written
by the Durable Goods Industries
Committee, and this move was de-
feated, 46 to 30
The final vote found single Demo-
crat, Gore of Oklahoma. registered
in opposition to the bill Fifteen
Republicans voted with At Democrats
in favor of the measure. They in
cluded Steiwer of Oregon and VAN
denburg OF Michigan, who were active
In debate, urging modifying amend
ment. but favored regulation of the
stock market.
Realizing they had no chance of
getting approval of their amendments
w SAAS oSSoA At4Co dCt, t1lC COIlSCf VdllNe
Republicans concentrated on an effort
to make sure that their proposals
would be given careful consideration
in conference. They were defeated
with the understanding that would be
the case.
Exchange Counsel Present.
For the first time in the course
OF the consideration of the bill on
the floor Of either House, an official
of the New York STOCK Exchange was
present in the gallery for passage of
the bill. He was Roland Redmond,
its general counsel.
He sat beside Ferdinand Pecora,
counsel for the Senate Banking Com
mittee, in its extensive investigation
of all street practices. In the same
group were Ben Cohen and Thomas
Corcoran. youthful liberal attorneys
who were influential in drafting the
bill.
The principal points of disagree
ment between Senate and House bills
are:
The Senate's amendments extensive
1y decreased the severe liabilities i'm
posed by the securities act of last
year. The House bill contains no
such provisions.
The Houses stipulation that gen.
eral regulatory powers be exercised
by the Federal Trade Commission,
and the Senate's provision for ad-
ministration by newly created COM
mission.
The Senate's provision that mini
mum margin requirements for brok-
erage accounts and loans on securl-
ties by State banks be fixed by its
special commission, with the Federal
Reserve Board determining the maxi
mum credit that member bank may
extend on securities.
The House bill provides that the
Reserve Board fix all margin require
m ,nts, and expresses it as the opinion
of Congress that in normal times As
per cent should be the proper figure.
The Senate margin section contains
no figures, advisory or otherwise.
In addition to the clauses that must
be settled in conference, both bills
provide for:
Compulsory registration of all stock
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