Evening star., 1934-05-12
Approval Is Given and Sent
to House for Adjustment
of Differences.
CHAMBER SPEEDS VOTE
IN MORNING SESSION
Proponents of More Liberal Leg
islation Pressed for Action
on Amendments.
BULLETIN.

The Senate today passed the
Fletcher -Rayburn stock market
control bill. 81 to 10. and sent it
to conference with the House for
adjustment of differences.
BY the Associated Press.
A last-minute drive for greater lib
eralization Of the securities act OF
1888 preceded today an assured final
approval of the stock market control
bill
Several Senators, including Walcott
Republican. of Connecticut, proposed
more sweeping changes in the securi-
ties act than suggested in the amend
ment offered by Chairman Fletcher OF
the Banking Committee.
Democratic leaders were confident
however. they could beat of efforts
to widen Fletcher's proposal.
Although the Senate met an hour
earlier than usual yesterday anc
stayed in session up to the dinner
hour, it was unable to reach a final
vote on the market control bill.
Dozens of proposed modifying
amendments were rejected by over
whelming majorities and a score OF
others were not even called up for a
vote in the face of the Senate's de-
termination to accept the bill re-
ported by its committee. But wher
6 o'clock came and the securitie:
issue had not even been discussed
leaders gave up the effort to pass the
bill.
Early Session Called.
They called the chamber back into
session an hour early this morning
however. to assure final action before
adjourning for the week end.
Here are the provisions putting
teeth" in the bill:
members to regulate the exchanges un.
der broad power to control trading anc
prevent manipulation.
Authority for the commission to reg.
ulate margins extended by brokers
with similar power for the Federal Re.
serve Board to control margins through
banks.
Registration with the commission o.
all big exchanges and the securitie!
listed on them.
Requirements for complete report:
to the commission on all companie:
listing securities and subsequent re.
ports at regular intervals.
Prohibitions against manipulativt
practices.
Authority for the commission to di-
vorce as far as practicable the func-
tions of broker and dealer.
Requirements for officers, directors
and large stockholders of companies to
report their holdings in the stock OF
the companies with which they are
connected.
Committee in Command.
The Banking Committee yesterday
maintained clear command of the sit
uation which had been markedly ap-
parent from the start of the discus
sion of the bill Only amendments
which it offered or found acceptable
had a chance of adoption. Several
of these were written into the bill
One by Senator Steiwer, Republican
of Oregon, would exempt railroads
from making financial reports to the
proposed Stock Exchange Commission
The carriers, he pointed out already
are under severe regulation" by the
Interstate Commerce Commission
which holds virtual dictatorship over
their financial operations.
Another. by the same author, would
exempt telephone. telegraph and pipe
line companies from making such re-
ports after the initial listing of their
stocks. They, too, are subject to In
terstate Commerce Commission super
vision, except that the latter holds nc
veto power over their stock issues, as
it does with those of the railroads.
An amendment by Fletcher was ap-
proved under the obligations of for.
eign government would be classified
as exempted securities" and not made
amenable to the bill.