Evening star., 1934-04-04
FURTHER CHANGE
SEEN IN BILL FOR
MARKET CONTROL
Action Expected in Spite
of RooseveIt's 0. K.
of Measure.
SENATE BANKING GROUP
SENTIMENT is TESTED
Proposed Substitute Legislation
Is Submitted to Committee
by Two Exchanges.
BY the Associated Press.

BY the Associated Press.
Despite President Roosevelts o. K
on the bill to control the stock mar
kets, members of the Senate Banking
Committee predicted today it would
be modified again.
They said the strength of the oppo-
sition to it would assure many altera-
tions. Backers of the measure, en-
titled the Fletcher -Rayburn bill, hope
the committee will report it without
weakening" it.
Several Democratic members are
among those seeking changes. The
only Republicans on the committee
who support the legislation in sub
stantially its present form are Sena-
tors Couzens of Michigan and Nor
beck of South Dakota.
First Test Yesterday.
The first test of committee senti-
ment occurred yesterday. Opponents
indicated a desire to rewrite 1t viz
tually from beginning to end by seek
ing to eliminate the vital Introductory
section without waiting for the more
controversial provisions.
Although Chairman Fletcher an
nounced the attempt to eliminate the
section had been defeated. some mem
bers of the committee challenged this
Interpretation. They contended ma
jority expressed opposition to the sec
ton and would vote to eliminate II.
This section, to which even STOCK
Exchange officials voiced no objection
sets forth the purpose Of the bill as
being to eliminate abuses, ana cites
their effect on the welfare of the coun-
trv in such a way as to point out the
jurisdiction of the Government to con-
troll them through its power over IN
terstate commerce.
Substitute Is Submitted.
Ferdinand Pecora. committee coun-
rel said this section might save the
constitutionality of the bilr' II 1t
should be put to a test.
Meanwhile, q proposed SUBSTITUTE
for the stock market regulation Dill
was submitted to members OF the
committee by representatives OF the
San Francisco and Los Angeles ex-
changes. The same substitute pre-
yiously had teen submitted to the
House Commerce Committee by 10TH
rop Wilmington. counsel OF the Bos-
ton Stock Exchange.
Wilmington said in submitting the
bill he offered it at the committees
suggestion and expressed belief the
measure would avoid many OF the
constitutional objections" to the
Fletcher-Rayburn bill, and that it
would be more effective In prevent
ing unsound and unwise speculation
and unfair practices"
Presented to Exchanges.
The bill was presented to the Sem
ate committee by Frank G. Shaugh-
messy, president of the San Fran
cisco Stock Exchange; Frederic H.
johnson, president of the San Fran
cisco Curb Ex.hange, and William G.
Paul. representing the Los Angeles
Stock Exchange and the Los Angeles
Curb Exchange.
wilmington had said the draft had
been submitted to representatives OF
25 stock exchanges and they had ad-
vised him I .or believed it eliminated
"the unworkable and debationary fea-
lures Of the pending bill"
Among the exchanges he listed were
those in New York, Boston. Chicago,
Baltimore, Philadelphia, st. Louis,
Cincinnati, San Francisco, Los An
geles, Seattle, Minneapolis. ST. Paul,
Cleveland, New Orleans, Washington,
Louisville and Richmond.