Evening star., 1934-04-10
BY the Associated Press.

BY the Associated Press.
The Senate Banking Committee to-
day adopted the controversial section
of the revised stock market control
bill relating to Segregation Of broker
and dealer activities, permitting the
regulatory body to lay down rules gov
erning the subject.
The Segregation section a. approved
would direct the regulatory body to
set up regulations governing trading
for their own account by brokers and
exchange members.
It would not prohibit trading by
brokers, as the original bill did.
The committee postponed action on
the marginal section Of the bill.
though Senator Glass. Democrat, Of
Virginia, carried to the meeting .
proposal from Eugene Black, governor
Of the Federal Reserve Board, to elm.
mate the fixed margin limitations.
Argue Interpretation.
Members Of the committee said
they spent most Of the session argu-
ing over the Interpretation placed on
their action yesterday In voting to
set up . new commission to regulate
the exchanges instead OF giving this
power to the Federal Trade Commis-
sion.
Several Senators who voted for that
proposal advanced by Senator Glass
denied they were seeking to harm the
bill and insisted they wanted . bill
with teeth"
They pointed out that though the
wording Of the Glass amendment was
virtually identical with the last pro-
posal submitted by Richard Whitney,
president of the New York Stock Ex-
change, It had previously been offered
by Senator King. Democrat, Of Utah.
Glass submitted to the committee on
behalf Of Eugene Black, governor Of
the Reserve Board, the proposal to
place complete Jurisdiction over mar
gins extended by brokers with the pro-
posed Federal Securities Exchange
Commission. which would regulate the
exchanges under the bill as It now
stands
Blacks plan also would give the
Federal Reserve Board power to lay
down minimum marginal requirements
III 1OGA&40 W AACkxlOCA 0olAA0 Va 0t<6A
market securities.
Board Has Power.
The Reserve Board has this power
already under the banking act Of 1888
with relation to banks that are redis-
counting with the Reserve System.
Many banks. however, are now in .
condition to escape this supervision
because their excess reserves make it
possible for them to engage in large
operations without going to the Re-
serve System for help.
Congressional proponents of placing
the Federal Trade Commission in
charge of the stock exchanges looked
to President Roosevelt for support In
retaining this plan.
Friends Of the proposal are consid-
ering the advisability Of holding the
Fletcher-Rayburn bill in the Banking
Committee until the President returns
The Senate group upset the plans Of
the bills authors yesterday with .
sudden 16-to-8 vote in favor Of o plan
by Senator Glass which would set up
an Independent commission to control
the stock exchanges. a. -
Brain Trust Hit.
Under the leadership Of Glass. who
has no love for the brain trust" and
many Of the new deal" proposals, the
Senate committee struck from the bill
the provision which would place the
regulation Of the Stock Exchange
partly in the hands of the Federal
Reserve Board and partly In those Of
the Federal Trade Commission. An
amendment offered by Glass provides
that there shall be set up . new COM
mission Of three members, appointed
by the President and confirmed by
the Senate.