Evening star., 1934-05-28


Riding Hoods have been putting it
over on the wolves of Wall Street
again. In fact, they tied the wolves
up outside.
The Congressman were glad enough
to have them do it. Indeed. they
invited the hoodsmen in. There is
nothing particularly wrong about
that, If the advice given is good.
Experts of the Government usually
consult in private with congressional
committees and sit in on executive
sessions. All these three are Govern
ment employees.
Co-Authors of Bill.
Messrs. Corcoran and Cohen wrote
the stock regulation bill and Mr..
Lands wrote most of the securities
act. No one knows more about them.
The Wall Streeters charge they are
prejudiced, but they insist they are
working for the people.
At any rate there is moral in
that for all aspiring young dltru-
lists. II you wdnt the right kind
of legislation, Urite it yourself,
guide it through Congress yourself
and then administer it.
The best phase Of the hoodsmens S
work was on modification of the Sc
curities act.
The original changes included one
whereby a man who loses his money
in stocks cannot sue for damages un-
less he proves that he relied on an
untruthful statement of a corporation
official in buying the stock.
| Lawyers can see what that would
do to securities regulation. New stock
buyers would never be able to establish
such proof. The punitive features oil
the act would not be yerv sharp.
Burden of Proof Shifted.
The altruists changed that around
coyly so the burden of proof Is re-
moved from the loser. All he has to
do is to say he relied on an untruth-
! full statement o. corporation official
and he can sue. That puts the teeth
back in it. 1t permits almost any one
to sue.
The result is that, unless the lawyers
find some new hidden loopholes, the
original claws of the act will not be
dulled materially by the current
changes. ,
The altruists could have done little
! without excellent congressional lead
ership. Their mainstays have been
Representative Rayburn, Senators
Fletcher and Byrnes. Messrs. Ray
burn and Byrnes contributed the
shrewd congressional strategy. while
Fletcher acted as mouthpiece.
Nearly all Democratic and some
Republican CongreSSmen placed
entire faith in the hoodSmen. EDen
President Roosevelt Uent to their
assistance at times iDhen they got
into q particularly tight place.
The result is that the conservatives
we're completely out, for probably the
first time in the history OF such regu-
latory legislation.
The administration also has been
at work actively. but quietly. in an
other quarter for the Wagner Labor
Board BILL another liberal measure.
Some people have had their doubts
as to whether Mr.. Roosevelt supported
the measure, but, on the inside, he
has been working hand in hand with
Senator Wagner and Miss Perkins fol
it all the time.
The current wave Of strikes over the
country enables them to push reluc-
tant Senate committee into reporting
the bill.
The same thing is happening in re-
gard to this legislation as on the stock
bill. In the end it will 60 through,
despite the objections of manufacture
ers' organizations.
Opposition Misled.
The Wagner bill opposition was mis-
led by Mr.. Roosevelt's announcement
that he was going to send Congress g
special message on social legislation
He told Democratic Floor Leader
Byrns he would recommend that such
legislation be submitted to congress
sional committee for investigation
during the Summer, with view tc
action next session. That would de-
lay it.
What Mr.. Roosevelt had in minc
was the 3O-hour-week bill and the
six-day-week bill for rail employees
He would really like to sidetrack
those until next session.