The midland journal. (Rising Sun, Md.) 1885-1947, 1934-03-09
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National Topics Interpreted "a fF7FF9SFbe
by William Bruckart MSn<11SH1T
by William Bruckart

a hand with ten-spot as the high
card. In reporting that circumstance,
however, 1t seems to me one should call
attention to the possibility that the
Department of Agriculture may have
1.-THE goods" on the meat packers. If
that be the case, it is obvious that OPP
ponents Of the New Deal will have to
look elsewhere for peg on which to
hang their hats.
Further, it is apparent here that If
the President succeeds in his plan to
get congress out of town before it
reaches the stage where it has idle
hands, the chances of frontal attack
on his program seem materially less.
When the legislation for control Of
the security exchanges passes, as, Of
course, it will pass
Supervise since it is an admin
Security Sales istration proposal,
commission will be placed In the po-
sition Of virtual supervisor of all trans
actions in the issue and sale of Sc
curities, whether they be stocks or
bonds, notes or any other form of cor
porate Indebtedness. The circum-
stance has directed considerable at
tention lately to the relationship be-
tween that federal agency and business
interests, as well as the treatment
business may expect from the commits
sion as now made up. Accordingly, I
have done some digging around to find
out what the feeling is.
Through the period in which l have
watched Washington, the commission
distinctly has had it's ups and downs.
l believe that, in most instances, bust
ness has looked upon the commission
with more or less favor respectively
as it has pursued an economic policy
of reasonableneSs or radicalism. In
other words, as the commission has
tried to work out satisfactory policies
by negotiation with business, it has
retained the confidence of business.
Conversely, when radicals have been
predominant in the commission and it
has sought to crack down." as Gen.
eral Johnson says in NRA affairs, bust
ness has not failed to throw bomb
shells at the commission wherever the
opportunity presented.
Passage Of the law that required
registration Of all security issues with
the commission before they were Of
fered for sale-the so-called truth in
securities act-was expected by many
to place in the commissions hands a
weapon which it would use in carrying
out many radical ideas. There was
doubt, and still is doubt. as to the
efficacy of such legislation. There were
claims, and still are claims, that pass
age of the law cuts down the avail
ability of funds for corporate financing
and, consequently, restricts business
development.
The information available to me
seems to indicate there is some truth
in those claims, but there is also some
truth in the assertion that restrictions
were necessary in order to protect in
vestors from INSCRIPTIONS individuals
who issue and sell fake stocks and
bonds. Thus far, however, the COM
mission seems to have given rather
satisfactory administration of the Sc
curitieS law.
Each group probably will be found
to be partially wrong after the COM
mission starts on its
No Job for new job. Ihear COM
Theorists ment, however, to
the effect that the
commission must watch its step in Sc
lection of personnel in connection with
stock exchange supervision. That job
will be highly technical, and the dan
ger that has been pointed out is that
unframed theorists may be appointed
to do much of the work. 1t is hardly
necessary to say that most theorists
enjoy trying out their ideas at other
peoples expense, and surely admins
tration of the country's trading marts
is no place to TRY it on the dog"
The stake is too high.
Through some eight or ten years
past, the commission has followed
course of citing business for alleged
violation of fair practice rules and Of
fering no statement except the
charges. The result was stigma on
the particular business. Oftentimes.
complaints were made by competitors
just to gain the advantage of that
stigma. Last month, however, that
policy was changed and hereafter, the
commission will issue their citations
and will tell why the action was taken,
thus affording full publicity for anyone
to examine the case. 1t is an action
that probably will reduce the number
of mischievous complaints, because
competitors won't attempt so freely to
gain an advantage by smearing the
reputation of another business when
their own part in it is disclosed.
My conviction is that adoption Of
rule Of that kind may have the effect
of Tending off some of the fire that the
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