Evening star., 1934-07-17
SECURITIES BOARD
PREPARES TO ACT
Principal Key Positions Are
Filled on Stock Exchange
Commission.

By ths AsrociAtse Press
with key positions hlled. the Stock
Exchange Commission prepared today
n establish several divisions 70 handle
various phases of its work
II announced Yesterday that Judge
John J. Burns of the Massachusetts
Superior Court would be Its general
counsel with Baldwin Bane. chief OF
the Securities Division under the Fed
Cral Trade Commission. becoming
executive assistant TO the commission
Chairman Joseph p. Kennedy, IN
making the announcements 10 news
paper men. expressed qualification
that Burns had accepted and praised
him as an able lawyer and jurist,
Activities Broadcned.
Under the Trade Commission. Bsne
dcalt only with the administration OF
the securities act In his new post
he viii have charge Of all activities
under the Exchange Commission.
Kennedy said william o Douglas
Of the Yale Law School would be
placed In charge Of the commission s
work dealing with reorganization OF
bankrupt corporations under the Sc
curiteS act
Several other divisions are planned.
with member OF the commission 70
be placed in charge Of each.
Kennedy said the commission
planned 10 start moving soon into
its new quarters at the old Interstate
Commerce Commission Building next
week. but several weeks would elspse
before It would settle down there.
Change FsflS 10 Help.
Mobilization of the securities act
OF 1893. relaxing the severe penalties
imposed upon the iSSuers Of faulty
stocks and bonds. so far has brought
no increase in the volume Of Securi-
ties offered to the public, Federal
Trade Commission officials reported
In fact. as measured by applications
received. there has been a slight de-
cline since the changes became ef-
fective
Behind this development lies a
yearlong controversy between big
business organizations on the one
hand and congressional liberals and
the liberal advisers Of the President
on the other.
The former contended the original
bill. the purpose OF which was to
prevent the mulcting Of the invest
ing public by INSCRIPTIONS promoters,
was operating TO hamstring legitimate
business.
The law. they claimed. was keeping
not only worthless securities off the
market but good stocks and bonds as
well, since persons we're reluctant to
open themselves TO the heavy liabili-
ties contained in the act even by in
advertance.
They argued that, because of this
situation, the tagging heavy indus
tries we're unable to obtain the
financing they needed for an eXpan-
sion that would aid the general re-
covery program.
More Changes Sought.
This contention was vigorously dis
puted, both in Congress and out.
Finally, the administration agreed to
modification Of the law, but spokes-
men for business objected the
amendments enacted were not sufi-
ciently broad TO relieve the condition
Of which it complained.
II the condition reported today at
the Trade Commission continues. it
undoubtedly will be made the basis Of
further modification drives at the
next session of Congress
The securities division OF the Trade
Commission, now officially trans
ferred to the Stock Exchange Com
mission and in the process of making
that transfer, will publish final fig
ures on June fiotations in a few days.