The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-05-12
STOCK RULE BILL
PASSED BY SENATE
WITHOUT CHANGES
Amendments Designed to Mod
ify Restrictions Are Voted
Down by Solons

Washington, May IL. 49, (R) 49, The
Fletcher Rayburn stock market con-
troll bill was passed by the senate
Saturday and sent to conference
with the house for adjustment Of diff
ferences.
The senate's action was the culm-
nation Of years Of agitation for reg
ulation Of the exchanges and assured
final approval Of bill satisfactory to
those demanding 1t.
Shortly before the bill passed the
senate adopted the administration
amendment to modify the securities
act Of 1888 and rejected q series Of
more liberal proposals.
Amendments to modify the stock
bill all had been shouted down as fast
as they were offered and the bill went
through as recommended by the SEN
ate banking committee.
The vote on final passage was So to
Is. Northwest senator's voting for the
measure were Frazier and Nye of
North Dakota: Bulow and Norbeck Of
South Dakota: Erickson and Wheeler
Of Montana. and Schall Of Minnesota.
Senator Shipstead Of Minnesota was
not listed In the vote tabulation.
New Commission Formed
The administration amendment, Of
fered by Chairman Fletcher Of the
banking committee, would limit
some Of the liabilities Of the securi-
ties act to which industrial leaders
have objected and would transfer
Jurisdiction over the law to the pro-
posed new commission to regulate
stock exchanges.
Fletcher's modification Of the Sc
curities act WAS approved without :
record vote.
Previously. the senate rejected 80 to
IS series Of amendments by Senator
Walcott (Rep. Conn.,, to extend
FletcherS proposals. This was done
with an understanding Walcott would
be permitted to present them to the
conferees between the house and SEN
ate.
Major provisions Of the bill, similar
to those In the house measure, would:
Make it unlawful for any exchange
to do business until registered with
the commission, or exempted from
registration because Of It's limited
operations.
Rigidly limit credit to brokers by
forbidding them to borrow more than
20 times the capital employed In their
businesses.
Prohibit manipulative practices such
as wash sales. matched orders, pool
operations. pegging Of prices. and ex-
tend to the commission power to curb
other practices,
Regulate Short Sales
Prohibit. short sales and stop loss
orders except under the commissions
rules.
Restrict floor trading by exchange
members and permit the commission
to divorce Is far s practicable brok-
er and dealer activities by exchange
members.
Require registration Of securities
listed on registered exchanges. with
submission Of complete information
about the Issuing companies with the
exchanges and the commission.
Compel regular reports to the COM
mission on thu condition and opera
lions Of the companies.
Permit the commission to regulate
over the counter markets.
Require officers, directors and large
stockholders OF companies to report
monthly their holdings Of stock In the
companies with which they were con.
nected when there was any change.
Provide penalties Of 325.0 900 fine or
imprisonment up to five years for
violations Of the law by individuals
or corporations and $4,000 fine for
violations BY exchanges.