The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-03-09

atives or senator's is able TO add i'm
petus TO a rolling ball of criticism.
The President, therefore. Is admitted
ly preparing TO see that congress adj
journs as soon as legislation deemed
necessary from an administration
standpoint has been enacted. IL he
fails to accomplish that end, we viii
hear much more criticism than we
have heard. because critics eventually
become more vocal.
When the legislation for control Of
the security exchanges passes, as, of
course, il viii pass
Supervise since it Is an admin
the Federal Trade
commission win be placed In the po-
sition of virtual supervisor of all trans
actions In the issue and sale of Sc
curities, whether they be stocks or
bonds, notes or any other form of cor
porate Indebtedness. The circum-
stance has directed considerable at
tention lately TO the relationship be-
tween that federal agency and business
interests, as well as the treatment
business may expect from the commits
sion as now made up. Accordingly,
have done some digging around TO find
out what the feeling is.
Through the period in which have
watched Washington, the commission
distinctly has had its ups and downs.
/ believe that, in most instances, BUSH
ness has looked upon the commission
with more or less favor respectively
as it has pursued an economic policy
of reasonableness or radicalism. In
other words, as the commission has
tried TO work out satisfactory policies
by negotiation with business, it has
retained the confidence of business
Conversely, when radicals have been
predominant in the commission and it
has sought to crack down." as Gen.
eraI Johnson says in NRA affairs, bust
ness has not failed to throw bomb
shells at the commission wherever the
opportunity presented.
Passage Of the law that required
registration Of all security issues with
the commission before they were Of
fered for sale-the so-called truth in
securities act-was expected by many
to place In the commissions hands
weapon which it would use in carrying
out many radical ideas. There was
doubt, and still is doubt, as to the
efficacy of such legislation. There were
claims, and still are claims, that pass
age of the law cuts down the avail
ability of funds for corporate financing
and, consequently, restricts business
development.
The information available to me
seems TO indicate there is some truth
in those claims, but there is also some
truth in the assertion that restrictions
were necessary in order to protect in
vestors from INSCRIPTIONS individuals
who issue and sell fake stocks and
bonds. Thus far, however, the COM
mission seems to have given a rather
satisfactory administration Of the Sc
curities law. That is, it has kept
enough of the conservative influence
along with its liberal views so that the
trend of its rulings has not proved dis
turbing TO the bulk of those who must
meet the commission requirements.
As TO its attitude in administering
the stock exchange law, no one can
tell at this moment. Around the halls
of congress. opponents of the stock
exchange measure say the commission
will surely wreck the stock exchanges
because administration of the statute
will be in the hands of couple of men
who are decidedly radical. Propo-
nents Of the proposed control measure
argue just as strongly on the other
side, naturally.
Each group probably viii be found
TO be partially wrong after the COM
mission starts on its
No Job for new job. hear CON-
TL.,~;.t. ment, however, to
the effect that the
commission must watch its step in Sc
lection of personnel in connection with
stock exchange supervision. That job
viii be highly technical, and the dan
ger that has been pointed out is that
unframed theorists may be appointed
to do much Of the work. 1t is hardly
necessary to say that most theorists
enjoy trying out their ideas at other
peoples expense. and surely admins
tration of the country's. trading marts
is no place TO try it on the dog"
The stake is too high.
Through some eight or ten years
past, the commission has followed a
course of citing business for alleged
violation of fair practice rules and Of
fering no statement except the
charges. The result was a stigma on
the particular business. 0ftentimes.
complaints were made by competitors
inst tn gain the advantage of that