Evening star., 1934-01-28
SPECULATION CURB |
BY j. S. PROPOSED
Unified Telegraph System
Also Urged in Presidential
Committees Reports.
Sy the Associated Press.

Tor the Nation were reCoinWenueu Wy
presidential committees yesterday IN
communications sent to Capitol Hill.
Regarding stock exchanges, they sug-
gested:
Strict regulation through . license
system and q Federal administrative
authority.
For communications. they called for:
A unified telegraph system and rigid
regulation of all communications by
Federal agency.
There were some expressions OF doubt
Is to the immediate fate OF the recon-
mendations. Speaker Rainey said they
were not in the emergency category
and probably would not be acted upon
a. this ts ssss9n 1ns asa afer the
proper committees at the Capitol had
studied the measures, he would talk
the matter over with them and that
action was expected at this Congress.
Would Create Board.
In dealing with stock exchanges, the
report sent to Capitol Hill recommend
ed creation of an administrative au-
thority with broad discretionary pow
ers" to require the exchanges to adopt
rules and regulations for fair dealing.
Legislation to require corporations
engaging in interstate commerce 10 Sc
cure Federal incorporation also was
suggested as an effective way to deal
with some of the "evils connected Win
ranipulations of stocks"
Some of the practices disclosed by
the Senate Stock Market Investigating
Committee were denounced in sharp
language. =.
your committee regards certain OF
the disclosures before the subcommlt-
tee of the Senate Committee on Bank
ing and Currency during the past year
and half as imposing an imperative
oblipation to devise constructive meas
ures for the prevention OF those prac-
tices which have shocked the con-
science of the Nation" the report said.
There has been revealed the spec
tacle of certain leaders in the world
of finance who, while standing IN a
fiduciary relation to the stockholders
as directors in corporations, have en-
gagged in stock market transactions
which would not but rebound to the
ultimate disadvantage Of the share
holders"
Chairman Fletcher Of the Senate
Committee, which has been conduct
ing the long two-year inquiry into stock
market practices. said ms cofnmltt,ee -,
would not submit any legislation to the
Senate until 1t has completed It's In
quiry, probably next month
Expresses Agreement.
He expressed himself in agreement
with the chief recommendations OF the
committee.
The report did not carry recommen-
dations for dealing with commodity ex-
changes, but it said that the Agriculture
Department should harmonic two pro-
posals by bureau chiefs for dealing
with them before submitting legislation
The report said ]. w. T. Duvel, chief
OF the Grain Futures Administration,
and Nils A. Olsen, chief of the Bureau
of Agricultural Economics, had prepared
bills for the regulation Of commodity
exchanges from two different angles.
These proposals, the report said
SHOULD be harmoniZed so that two in
consistent proposals will not be placed
before Congress at the same time"
Regarding communications, the COM
nnittee that handled that subject point
ed out that regulatory powers now are
vested in the Interstate Commerce
Commission, but the memorandum de-
scribed that agency as burdened with
the responsibilities of railroad supervS-
ion. The new agency 1t suggested
would be an independent commission
or a bureau of an existing executive
department.
Federal supervision, in the commit
tees opinion, would reduce rates by
regulating profits and overhead ex-
penSes and intercompany charges
other prospective benefits which the
memorandum recited included preven-
ton of discrimination" control of ex-
elusive contracts with foreign nations
and corporations regulation OF depre-
citation charges, prevention OF "specu-
lative management and the watering
Of stock, and the extension of service
to new localities.
Would Broaden Law.
merger of telephone companies should
be broadened TO include all communica-
ton enterprises.
The memorandum gave credit to pri-
vate enterprise in developing the
present extensive telegraph service, but
said competitive duplication OF oflces
Of the two principal companies pre-
vented proper service to smaller towns
and villages.
The majority OF the COMMITTEES ex-
pressed the belief that q premium was
being paid to maintain this competi-
ton and that rates. with unification'
could be lowered.
Referring to the present set-up as
- collection of communication agencies
not working in accordance with any
national plan," the memorandum as
serted each company In the field lacked
certain facilities necessary for greatest
efficiency. It particularly referred to the
radio corporation as seriously handl-
capped" through lack of offices and be-
ing forced to depend on wire telegraph
systems for picking up messages.
It characterized as wise" the law
barring cable companies from engaging
in radio telegraphy and said the same
protection should be afforded radio in
the domestic field.
A possible future unification of radio
with wire and cable communication
systems was mentioned when radio has
demonstrated its possibilities"
Advisory Council Suggested.
A communications advisory council.
consisting of representatives of the pri-
vate systems as well as various Gov
eminent departments which have their
own communications branches, was
suggested.
Arguments for and against public
ownership Of communications were con-
sidered, but the committee agreed that
all companies should be privately owned
and operated, AT least for the present. "
Chairman Dill of the Senate Inter-
state Commerce Committee said last
night a bill to create Communications
Commission would be drawn up and
submitted at the earliest possible mo-
ment.
Dill said the Senate Committee was
not interested at present in q con1muni-
cations merger, but solely In getting the
regulatory commission established.
The report on commodity exchanges
said the bill submitted by Duvel had
two principal objects: First, to extend
the present grain futures act and make
It the vehicle for the control of all
commodity exchanges; and second, to
strengthen the provisions of the present
at onfv,0 ,,ndor Eodcro1 tnonco oil