Evening star., 1934-05-18
Ro0seuelt-Senate Clash Looms
On ssBrain Trust's'' Stock Blu
President May Be Forced
to Recede on Plan
Lands offered.
Latter Credited With
Converting Chief From,
Glass Plan.
BY DAVID LAWRENCE.


The brain trust" is riding high,
wide and handsome these days-even
higher in the esteem of the White
House than the Senate.
James Lands, former professor OF
law at Harvard, and brain truster in
charge of the new legislation to con-
troll Stock Exchanges, has won for
himself a place with the President
which was strong enough to override
the wishes Of the Senate and to bring
about incidentally an unprecedented
controversy:
The facts are these:
j. The President told Carter Glass
he would favor Securities Commits
sion separate and distinct from the
Federal Trade Commission and went
so far as to discuss the method by
which the Senate's wishes in respect
to a separate commission would be
achieved in a parliamentary way.
Switches Viewpoint.
2. Then the President, instead of
sending for the Senate conferees, had
a consultation with Chairman Ray
burn of the House conferees group
and also Dr. Lands of the Federal
Trade Commission, after which the
White House let it be known that the
President favored the Federal Trade
Commission being enlarged by re-
tanning power over the securities ex-
changes.
3. The White House also explained
to the press that the President had
not taken any position for or against
a separate Securities Commission be-
fore the bill went to conference and
that he gave his views only when
asked by conferees.
4. The result of this announcement
of the Presidents views infuriated
Senator Barkley of Kentucky and
Senator Glass of Virginia, both DEM
ocrats. Glass resigned from the Bank
ing and Currency Committee and
Barkley sought to resign from the
Conference Committee, as they dis
liked the idea of having the Presi-
dent express his views to the House
committee and take position with
out consultation with members of the
Senate.
Senate Debate Forecast.
There is every reason to believe that
the difference of opinion between what
the President said to Senator Glass
and what the White House told news
paper men was the Presidents sup
posedly neutral position will be dis
cussed in the Senate when the bill
no,,oo- froy,, npnfpranre
Originally the Senate's proposal OF
a separate commission was voted into
the bill. 81 to 20. The Senate had
shown no signs Of receding; in fact,
there we're rumors that the House
committee was prepared to accept the
Senate's suggestion.
Then something happened. DR..
Lands all along has wanted the ad-
ministration Of the securities act and
the new exchange control bill kept in
the Federal Trade Commission. He
has been one Of the authors of the
new legislation and his word has been
practically final in all negotiations
with respect to revisionS Of the Sc
curities act of 1888.
1t was suggested that the President
might appoint DR.. Lands to the New
Securities Commission, but there have
also been rumors that maybe Dr.
Lands would not be confirmed by the
Senate But by keeping the Securities
Control Administration in the Federal
Trade Commission, DR.. Lands would
retain power over the two new securi-
ties Dills as we'll as over corporations
in general. which latter control Is be-
ieved by him to be vital to the Sue
cess OF the new deals drive against
improper sale of securities.
AS a practical matter the difference
between a separate commission to
handle the securities control and Civ
ing the power to the Federal Trade
Commission is not important. one way
or the other. Everything depends on
the views of the men appointed to ad-
minister the law, and Mr.. Roosevelt
has the appointive power
What is important and significant