Evening star., 1934-04-10
Dealer-Broker Segregation
Left Up to Ne,u Control Unit
Senate Group Approues Revision in
Market BiI-FederaI Reserve Asks
Change in, Marginal Requirements.

A majority Of the Democrats voted
with the Virginia Senator on this pro-
posal despite the fact President Roose-
welt had indicated he would favor
having the Federal Trade Commission
~ the regulatory body. The action of
the committee was IN line with q new
and more Independent spirit on the
part Of the Senators. They are inclined
no longer to swallow whole recon-
mendations Of the brain trust" even
though they may have the backing
and approval Of the President. It
was predicted today that hereafter
the Senate. II not the House, would
insist upon its own drafts Of legisla-
hon proposed.
Held vietsry fer Exchange.
In some quarters the victory of the
Glass amendment Was called Q victory
for the New York Stock Exchange
because Richard Whitney. president Of
the exchange, had testified when be
appeared before the committee that
m independent commission, apart
from the Federal Trade Commission,
would be preferable II there was to be
Government regulation Of the ex-
change.
Senator Glass Indignantly denied
that any such construction could be
placed upon the committees action.
I never heard Mr.. Whitney's testi-
mony," said the Virginia Senator, IT
never read It and I never had any
conversation with Mr.. Whitney about
this matter. was actuated In offer
ing the. amendment for . separate
commission by the belief that the
Federal Reserve Board should have
no connection whatever with the
Stock Exchange. I have always be-
heved that and have so stated many
times"
Senator Glass. It Is known, has no
love for the Stock Exchange and
would not be averse to its abolition,
50 far as he himself Is concerned.
Furthermore. the Independent COM
mission proposed by Mr.. Whitney at
the time he appeared and testified
regarding the Stock Exchange bill was
. vastly different affair from that
which Mr.. Glass provides for in his
amendment The Whitney proposal
called for representatives Of the ex-
change q well q Of the Government
on this commission, and for . con-
siderably larger personnel
Senator Fletcher Is chairman Of the
committee. He and Senator Glass
have frequently claShed during the
Senate committees investigation Of
the New York Stock Exchange and
financial houses in New York. The
victory Of Senator Glass came as q
distinct and disagreeable surprise to
the administration members of the
committee.
Fight Over Introduction.
There was q fight, too. in the COM
mittee over the Introductory section
of the bill, which was called by some
Of its opponents . stump speech"
and which attempted to set up reasons
for the passage Of the legislation. An
attempt to modify the language of
this section was defeated 9 to . and
then the committee by q vote Of 10
to 8 struck the section from the bill
entirely.
There were other indications today
that the influence Of the brain
trust" 50 far rs the Senate and House
are concerned, Is on the wane. It is
now considered extremely likely that
the securities act, passed by the Con-
gress at its session last year as part
Of the new deal program is to be
amended, particularly with reference
to the liability clauses. It has been
contended widely that this act is pre-.
venting the issuance of new securities
and the now Of capital into industry.
The drafters of the securities act have
continued to insist that the act has
not prevented the issuance Of sound
securities and that the law should be
retained without amendment.