Evening star., 1934-04-18
STOCKS BILL D. \.
GIVEN IN HOUSE
Subcommittee Reports Re-
viSed FIetCher-Rayburn
Control Measure.
By the Associated Press.

By the Associated Press.
The revised Fletcher-Rayburn stock
market control BILL carrying a As
per cent marginal requirement. was
approved today by House Interstate
Commerce Subcommittee.
Administration leaders have under
stood that President Roosevelt wanted
a definite marginal requirement in
the legislation. 1t was also reiterated
today at the White House that he
wants a bill with teeth"
The bill was ordered reported to
the full committee, which will con-
slider it tomorrow.
Contrary to the Senate Banking
Committees bill, which sets up sep
arate commission to regulate stock
exchanges, the House measure in
vests the regulatory authority in the
Federal Trade Commission.
Asked whether he favored the Sen
ate Committees proposal for a spe-
cial Stock Exchange Commission of
five, chairman Rayburn, Democrat, of
Texas, said:
I'm for the bill as reported by the
House subcommittee
In Line With President.
The Texan said he was going to
insist upon definite marginal require
mentS, in line with the President S
wishes.
The Senate bill leaves fixing of
margins to the Federal Reserve Board
The Senate Banking Committee de-
ferred action on the revised stock
market control bill until tomorrow to
permit its members to study the
changes made by a subcommittee.
Ferdinand Pecora, committee coun-
sci, spent about two hours in ex-
ecutive session explaining the changes.
Chairman Fletcher said he hoped
to get final action by the committee
tomorrow.
Fletcher said the committee also
had discussed turning the admins
tration of the securities act over to
the proposed market regulating COM
mission, but there had been no vote
on the proposal.
He said Senator Glass, Democrat
of Virginia. had discussed this plan
with Chairman Rayburn of the House
Committee, and that Rayburn had
urged increasing the commission to
five members as a move in that
direction.
Fletcher said he might offer some
amendments to the securities act, but
would submit them as separate leg
islation and not as amendments to
the stock bill.
Likely Major Features.
Although there still must be much
"give and take" before the measure
is finally approved, there were many
on Capitol Hill willing to predict
these would be its major features.
Regulations Of the exchanges by a
new Federal Securities Exchange Com
mission composed of five members
which also probably would be charged
with administering the securities act.
Joint responsibility for marginal
regulations between the new commits
sion and the Federal Reserve Board
under wide discretionary power, but
under a standard written into law as
in the pending House bill.
Authority for the commission to set
up rules for trading which would seq
regate as far as practicable the func-
tions of broker and dealer, but with
no statutory prohibition against COM
bination of the two activities.
Regular Annual Audits.
Power for the commission to COM
pei regular annual audits of all COM
panies listing securities and to re-
quire frequent monthly or quarterly
reports.
Rigid prohibition against and pen
alties for manipulative operations on
an exchange.
Provisions requiring officers, direc-
tors and large stockholders of a
company to report monthly on their
operations in its stocks and to turn
over to it profits resulting from spec
ulatiVe activities.