The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-02-10
BITTER FIGHT
FORECAST ON
MARKET BILL
Brokers and Exchanges to
offer Opposition at
Hearings.
PECORA ENTERS LISTS
Reviews Evidence Gathered
in Investigation of Wall
Street Deals.
BIZ United Press

By CHttcd Press
WASHINGTON, Feb. 10.-Con-
gressional machinery to put the ma
tons stock exchanges under rigid
supervision was in action today in
response to President Roosevelt'S
demands for protection of the in
vestor from the speculations of the
gambler.
Ferdinand Pecora, attorney for
the senate committee was busy in
New York whipping into final shape
the results of his studies of stock
market operations.
These will be presented to the
committee when hearings begin next
week and should furnish complete
picture of the effect of pool opera
lions and other speculative activity.
A storm of controversy more Sc
we're than any measure submitted
since the new deal began was ex-
pected to center on passage of the
bill. Brokers and stock exchanges
are expected to conduct vigorous
campaign against it.
Few Changes Expected
While the presidential message
extended also to the commodity
markets, congressional action on
this score is expected to await pas
sage of the securities bill. Sponsors
of the latter believe the two forms
of speculation present entirely sep
arate problems.
While the President was described
as having neither approved or dis
approved the bills offered in senate
and house, it was believed that no
more than minor changes would be
demanded.
introduced by Chairman Duncan
u. Fletcher of the senate banking
committee and Chairman Sam Ray
burn of the house interstate COM
merce committee, the bills provide
for strict regulation of all stock ex-
changes under the federal trade
commission.
As a result of compromise the two
bills now carry restrictions which
would limit margins to minimum
requirement of go per cent of the
current value of the security. An
exception is made, however, in less
speculative issues such as bonds
which move over a narrow price
range. AS little as 20 per cent mar
gin may be required for them.
Severe Penalties Provided
Full charges of enforcement OF
the law will be lodged in the fed
eral trade commission which has
power to raise margin requirements
even higher than so per cent should
conditions warrant. 1t also would
have power to limit and regulate
shortselling.
The law also would compel COM
plete disclosure of the affairs OF
corporations which wish to list
their securities on the market. An
nual, quarterly and monthly re-
ports of the affairs of the company
must be made.
The heavy doors which bar the
exchanges to all but the initiated
also will be forces open to the
scrutiny of the trade commission
It's agents are to have access at al
times to the exchange floors, com
mittee meetings and the books o.
exchanges and members.
Those who violate the law after
Oct. /, its effective date, will bf
liable to fines and Imprisonment
as we'll as damages inflicted or
specific individuals by illegal ac-
tivity.
Specifically outlawed is the prac-
tice of directors, officers and stock
holders of more than 5 per cent Of
outstanding stock CT corporations
specializing in the stocks of theil
concerns.