Evening star., 1934-01-29
SPECULA!|0NCUR
IN GAMING STUDIED
legaIization of Gambling Is
Considered by Stock Mar
ket PrOberS.
BY the Associated Press.

BY the Associated Press.
The administration committee which
investigated the possibilities Of stock
market regulation was disclosed today
to have gone in for psychology and
ways and means of influencing what
was termed that gambling impulse"
Indication was given of at least
mention during the committees eXecu-
tive deliberations of the possibility OF
legalizing some form of gambling under
Government direction as a means OF
cutting down speculation on the eX-
changes.
The committee. which recommended
Federal supervision of the stock ex-
changes, asserted excessive speculation
Is undoubtedly the principal evil con-
nected with the stock exchange.
Mention was made OF the potential
value of other less economically Signifi-
cant outlets for gambling. for which
the average man has an inherent in
stinct in some form or other"
"Never Combated Successfully"
One member of the committee said
privately that thorough and successful
market regulation would require serious
consideration of legalization of some
form of federally supervised gambling.
mo method of combating gambling
has ever been completely successful"
the committee said; IF abolished in one
form it seems always to crop up in
another. In America, the man of
average income has perhaps turned to
the stock exchange because of the pro-
hibition of various forms of gambling.
IF the speculative tendencies of our
people could be turned into other
channels. this instinct might be salts
fed without the far-reaching economic
consequences which come from wide
spread public speculation in the
market"
Excessive speculation in stocks. it was
pointed out. may send prices artificially
higher or lower and unreasonably high
prices often mean sharp collapse.
which damages the little man. since
there is no way to protect those who
seek gambling profit.
Committees Have Reports.
President Roosevelt will be consulted
by congressional leaders before they
make any concerted attempt to push
through at this session legislation regu-
lating the stock exchanges and COM
munication systems.
!'oluminouS reports on both subjects
from special committees are in the
hands of House and Senate commit
tees, but the provisions of the prospec-
tive measures and whether they will
60 through before Congress quits prob
ably will be decided at the White
House.
In turn, the decision there may be
based upon the disposition of other
matters which Mr.. Roosevelt appar-
emily considers more important. Should
these be thrown into the congressional
hopper to be ground out by Spring.
the administration may let the stock
exchanges and communications matter
go until another time.
Pending a study of the lengthy re-
ports, little comment was forthcoming
today from legislators, although Speaker
Rainey has said he did not regard the
proposals in the emergency class and
that he doubted any measures on the
subject would be passed before Congress
adjourns.
Even before the interdepartmental
report on communications control had
reached the Capitol, however, at least
one House member, Chairman Rayburn,
Democrat, of Texas of the Interstate
Commerce Committee, had begun work
on bill.
Central Control Favored.
Both Rayburn and Senator Dill, Dem
ocrat, of Washington. chairman of the
Corresponding Committee in the Senate,
have indicated q diSinclination toward
any merger of communication systems,
as favored by the report, although they
have looked with favor on the idea
of controlling the communications with
one central Federal agency, similar in
set-up to the control of railroads by
the Interstate Commerce Commission.
The committee which made the
Stock Exchange study at the request of
Mr.. Roosevelt proposed rigid regulation
through a Federal license system and
administrative authority.
The administrative authority for the
Stock Exchange would be given power
to require exchanges to set up and
follow rules for fair dealing" The
also proposed that the exchanges. in
adopting rules governing pools, margin
trading, specialists, short selling. listing
requirements retailing methods and
accounting, should draft the regulations
so the Federal administrative agency
would have flexible power" to alter
these from time to time as fuller
knowledge may require.
Liberalizing Law Urged.
The material in the report. Chairman
Fletcher of the Senate Banking Com
mittee said, was composed largely OF
data cleaned from the committees in
vestigation of exchange practices.
The Committee on Communications,
in making its report. said that, while
the Interstate Commerce Commission
now possesses some regulatory power.
it is required to devote most of its time
to railroad supervision.
The committee advocated that exist
ing law permitting the merger of tele-
phone companies be liberalized to in
clude all communication concerns.
Woman, SO, Is Rescuer.