Evening star., 1934-04-23
Rayburn Implies Tie-Up Be-
tween Exchange Officials
and N. R. A. Group.
DURABLE GOODS BODY
is CITED BY LEGISLATOR
Declares Foes of Measure Have
Used Business Men to Pull
Chestnuts From Fire.
By the Associated Press.

BY the Associated Press.
Representative Rayburn, Democrat,
of Texas, co-author Of the stock ex-
change control legislation, told report
ers today he would reveal to the House
"the most powerful lobby ever organ
lied against any bill which ever came
to Congress is working against this
bill"
Giving a hint that some detective
work has been indulged in to trace
the alleged lobbying" the Texan i'm
piled a tie-up against his bill between
exchange officials, an N. r. A. COM
mittee of business leaders and indus
trialists.
Cites Memorandum.
He said a memorandum from the
Durable Goods Committee of the N
r. A. had been mimeographed on a
machine from which statements had
been issued by Richard Whitney
president of the New York Stock
Exchange, and Roland Redmond.
The memorandum was put before a
House committee by George H. Mead,
a Dayton, Ohio, paper manufacturer.
Mead, who happened to be in Ray
burns Office at the time, said Il
guess I've been played for sucker
Rayburn heads the Interstate Com
merce Committee which held hear
ings. He said Mead had proposed
some amendments as the findings of
the N. r. A. Committee.
1T turned out that we had had
them two or three days before from
Mr.. Whitney and Mr. Redmond. They
were practically IDENTICAL" the Repre-
sentative added.
Town Full Of Lobbyists.
Everybody knows this town is full
Of lobbyists opposing the stock market
bill. They tried to get every group
in the country to join in this CAM
paign of fright and n1isrepresenta-
ton against this legislation"
Asked just who the people were.
Rayburn said:
These people are working In the
N. r. A.-this Durable Goods crowd" :"
Opponents of regulation, he con-
tinued. have used all the business
men it can to pull their chestnuts out
of the fire. They have used every
little broker, every little dealer and
every little clerk in their Offices and
have tried to frighten them. They
have tried to frighten every corpora
ton in the country with misrepre-
sentation of the provisions of this
bill"
Meanwhile, pressure for modif1ca-
tion of the securities act resulted in
the actual drafting of alterations by
administration leaders in the Senate.
The changes will be offered as
amendments to the pending STOCK
market control bill when 1t comes up
for Senate consideration.
Would Transfer Control.
Roosevelt leaders plan also to offer
an amendment to the market bill that
would transfer administration OF the
securities act from the Federal Trade
Commission to the proposed Federal
Securities Exchange Commission,
which would regulate the stock ex-
changes.
Creation of this separate commits
sion to enforce the market control bill
had been agreed to by administration
spokesmen at both ends of the Cap
itol.
Acceptance of the idea today had
even advanced to point where there
was discussion of the commissions
probable membership.
Ferdinand Pecora, able counsel for
the Senate Banking Committee and
director of its inquiry into Wall Street
practices, was prominently mentioned
among those likely to be appointed to
the commission.
1t was considered likely also, that
if the sucurities act is transferred to
the rew commission, James M. Lam
dis. now a Federal Trade commits
sioner, also would be appointed a
member of the new body.
How far the amendments to the
securities act would go had not been
determined, but administration lead
ers expected to have the modification
drafts completed within few days.
It was generally conceded that one
of them would seek to limit the Ii
ability of underwriters of security
issue to that part of the issue which
they handled. Under the law they
are liable for, the entire issue.