Evening star., 1934-03-12
COMPROMISE SEEN
ON STOCK CONTROL
Revised Bill Adds Two Ex.
change Experts to Fed.
eraI Trade Body.
BY the Associated Press.

BY the Associated Press.
Enlargement of the Federal Trade
Commission to regulate stock ex-
changes was proposed today following
definite word from the White House
that enactment Of strong" legislation
is desired this session.
Drafters of the legislation on Cap
itol Hill said the revised Fletcher
Rayburn bill would provide for two
additional members Of the commits
sion as experts on exchanges.
This was in the nature of a COM
promise between those proposing con-
troll by the Trade Commission as 1t is
now constituted and those urging Gre
alton Of a new agency to supervise
the markets.
Pecora Drafts Bill
The bill is being drafted by Ferdi-
nand Pecora, counsel of the Senate
Banking Committee, for Chairman
Fletcher. He had intended to submit
the revised measure today to the COM
time.
Meanwhile. hitherto unpublished
financial statements of the New York
Stock Exchange were furnished to
the Senate Banking Committee today
under subpoena.
The financial statements of the ex-
change and affiliated companies were
furnished in confidence and not
made public.
They were submitted by Richard
Whitney, president of the exchange,
together with copies Of the minutes
of the exchanges important commit
tees which also were withheld from
publication,
Pecora also made known the re-
vised bill would place jurisdiction
over credit generally and margin re-
quirements with the Treasury and
Federal Reserve Board
Notifications Made.
A number of other notifications
have been made, Pecora said includ-
ing changes in marginal requirements,
the activities Of brokers and the in
formation required of corporations.
Roland Redmond, counsel for the
Stock Exchange, asked the committee
to hold the data in strictest conf
dence.
He said publication would threaten
the financial life Of many men in busi-
ness for many years"
William C. Potter, chairman Of the
Guaranty Trust Co. of New York. pro-
tested against including bank regula-
tion in the stock market bill, con-
tending banks were already under the
controller of currency and should not
be subjected to the jurisdiction Of
two arms of the Government"
Potter said the marginal restriction
in the bill might have a harmful.
deflationary effect"
Mr.. Roosevelt indicated a desire
that the House act upon the measure
first. Chairman Rayburn of the
House Interstate Commerce Commit
tee will present a rewritten bill to
that group tomorrow 1t was being
officially printed today.
Chairman Fletcher in revision of
lllC NOulu ULOdQ
provisions of the original measure
which opponents charged would place
all business under Government con-
troll and disrupt the exchanges.
Fletcher held a final conference
on the bill last night with -'erdi-
nand Pecora,> committee counsel. who
has been charged with drafting the
measure. He would not disclose its
details. prior to placing it before the
committee.
Described as Adequate.
While the revised measure was said
to be a distinct modification of the
original one. its authors contended it
would be adequate to eliminate the
outstanding abuses which exchange
officials have acknowledged to exist.
The Senate committee called a
number of prominent witnesses today
to testify on the basis Of the original
proposal
Among those summoned were
William c. Potter. chairman of the
board of the Guaranty Trust Co. of
New York. and Percy H. Johnston.
president of the Chemical Bank &
Trust Co., and chairman of the New
York Clearing House Committee.