The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1934-03-08

by negotiation with business, it has
retained the confidence of business.
Conversely, when radicals have been
predominant in the commission and
it has sought to "crack down." as
General Johnson says in MIRA af-
fairs, business has not failed to throw
bombshells at the commission where
ever the opportunity presented.
Passage of the law that required
registration of all security issues with
the commission before they were Of
fered for sale the so-called truth
in securities act-was expected by
many to place in the commission S
hands weapon which it would use
in carrying out many radical ideas.
There was doubt, and still is doubt,
as to the efficacy of such legislation.
There were claims, and still are
claims, that passage of the law cuts
down the availability of funds for
corporate financing and consequent
ly, restricts business development.
The information available to me
seems to indicate there is some truth
in those claims, but there is also some
truth in the assertion that restric-
tions were necessary in order to pro-
tect investors from INSCRIPTIONS in
dividuals who issue and sell fake
stocks and bonds. Thus far, however,
the commission seems to have given a
rather satisfactory administration OF
the securities law.
No Job for Theorists
Each group probably will be found
to be partially wrong after the COM
mission starts on it's new job. hear
comment, however, to the effect that
the commission must watch its step
in selection of personnel in connection
with stock exchange supervision. That
job will be highly technical, and the
danger that has been pointed out is
that unframed theorists may be ap-
pointed to do much of the work. 1t is
hardly necessary to say that most
theorists enjoy trying out their ideas
at other peoples expense, and surely
administration of the country's trad
ing marts is no place to "try it on the
dog" The stake is too high.
Through some eight or ten years
past, the commission has followed q
course of citing a business for al
legged violation of fair practice rules
and offering no stateemnt except the
charges. The result was stigma on
the particular business. Oftentimes,
complaints were made by competitors
just to gain the advantage of that
stigma. Last month, however, that
policy was changed and hereafter the
commission will issue their citations
and will tell why the action was TAX
en-, thus affording full publicity for
anyone to examine the case. It is an
action that probably will reduce the
number of mischievous complaints,
because competitors won't attempt so
freely to gain an advantage by smear
ing the reputation of another bust
ness when their own part in it is dis
closed.
Ny conviction is that adoption of a
rule of that kind may have the effect
of Tending off some of the fire that
the commission naturally must ex-
pect from the school of thought OPP
posed to the principles upon which
the agency was founded. And, it Z is
well from the commissions stand
point for it to watch out! It's present
state Of recrudescence, after period
when its appropriations were cut to
the bone and its life threatened, may
not go on as now if it leans too far to
the radical side. Business interests
are not radical and they are not go
ing to cooperate with any agency,
governmental or private, that is rad
ical.