The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-01-27
FEDERAL RULE over
STOCK EXCHANGE IS
URGED ON CONGRESS
Report Of Presidents Survey
Committee Sees Need for
Definite Action

Washington, Jan. 27.-(F)-Strict
federal regulation Of the nations
stock exchanges through a license
system and federal administrator
was recommended to congress by
President Roosevelt's interdepart-
mental committee in a report made
public Saturday by the senate bank
ing committee.
Chairman Fletcher gave out the
letter from Secretary Roper. chair
man Of the committee. recommend
ing the regulatory legislation to the
president.
Fletcher did not make public the
detailed report itself, but said 1t laid
large part Of the responsibility for
the depression at the door Of the
exchanges and the speculation which
took place on them.
He said the report did not recon-
mend any legislation with regard to
commodity exchanges, but that this
subject would be dealt with In q sep
arate report by Secretary Of Agricul-
turc Wallace.
Roper outlined the major recon-
mendations as follows:
Il. To require that exchanges shall
receive federal license as a condition
permitting the use Of the mails and
of interstate commerce instrumental
tiles for transmitting their quotations
in all communications respecting
sales and other transactions on such
exchanges.
Ask Discretionary Power
q. There should be established an
administrative authority with broad
discretionary powers to require the
exchanges to adopt and enforce rules
and regulations in a form satisfac-
tory to the administrative agency and
of such character as to establish q
minimum standard Of fair dealing on
such exchanges.
IS. The adoption Of satisfactory
rules and regulations which, In the
event of violation, would give the
federal agency authority either to de-
prive such an exchange Of its license
or to suspend it or fine it, or to re-
quirc a change in its governing per-
sonnet
-. The study recommends that the
form and content Of stock exchange
rules covering such matters as pools.
margin trading. specialists. short
selling, listing requirements, retailing
methods. reports and accounting.
shall not be set forth In detail in the
statute, but shall be left to be pre-
scribed by the administrative agency
in accordance with the broad STAN
dards of the statute and above a
certain minimum requirement.
IS. In relation to the recommend
alton set forth on the preceding point
it is therefore proposed to require
the suggested administrative agency
to engage in the full and adequate
collection Of statistics upon which to
base its rules and regulations, with a
flexible power to alter these from
time to time as fuller knowledge
may require"
Would Revise Communications
Private ownership and operation Of
ICOUlIIIulllCdIIOlH uIlNCi ACACA
regulation also were recommended b.
the committee.
While the report merely recon-
mended some further extension Of
permission to merge existing com
panies," minority believed all do.
mestic communications should bt
merged. All but one Of the commit
tee members favored unified wire
telegraph service.
Regulation. the committee said
should be an independent commits
sion or bureau Of an existing exc
cutive department, and not under thu
Interstate Commerce commission, al
ready burdened with other duties.
Benefits accruing from regulation
in the opinion of the committee
would be reduced rates, prevention Of
discrimination, speculative manage.
ment and watering" Of stocks: ex-
tension Of service, maintenance Of
depreciation charges. and control Of
contracts made with foreign coun-
tries, hotels and railroads.