Evening star., 1934-05-11
ROADS EXEMPTED
|NST0CK MEASURE
Senate Amendment EIimi-
mates Requirement
for Reports.
BY the Associated Press.

Dy TIC ASSOCldicu
An amendment to the stock market
control bill to exempt railroads from
making reports required by the meas
ure was adopted today by the Senate
The amendment, offered by Senator
Steiwer, Republican, of Oregon, was
accepted by those in charge of the
bill as they pushed for final vote on
the proposed legislation.
Steiwer argued the railroads should
not be required to make the reports
demanded of other corporations be-
cause the carriers are already COM
PEELED to make detailed reports to the
Interstate Commerce Commission.
Duffy Amendment Beaten.
An amendment by Senator Duffy.
Democrat, OF Wisconsin to exempt
from the reporting provisions corpora
tions required to report to State gov
ernments was rejected.
Senator Kean. Republican. Of New
Jersey, spoke for the amendment and
offered a number Of other modifica-
tions in the bill
He told the Senate bucket shops
already were springing up all over the
country in expectation of the strict
regulation proposed.
Called into session an hour earlier
than usual, the Senate clamped down
a limitation on debate effort to enact
the bill before quitting time.
Before a final vote leaders predicted
approval of the Fletcher amendment
to modify the securities act of 1888
and place its administration under
the proposed Federal Securities Ex-
change Commission, designed to reg
ulate the stock markets.
Major Provisions.
Major provisions of the stock mar
ket bill, as it approached final vote,
were:
Creation Of a commission Of five
members appointed by the President
to regulate the exchanges.
Registration of exchanges with the
commission.
Supervision by the commission and
the Federal Reserve Board over mar
gins extended by brokers and banks.
respectively.
Prohibition of manipulative prac-
tices-
Power for the commission to limit
the combination of broker and dealer
activities by members of exchanges.
Registration of securities listed on
exchanges. with submission of reports
from the parent corporations on their
financial operations.
Requirements for reports by officers.
directors and large stockholders of
their holdings in the stock of their
companies.
Authority for purchasers Of securi-
ties to collect damages when their
purchases were based on misrepresen-
tation or misleading statements.
The Senate voted late yesterday to
have the bill administered by board
especially for that purpose and voted
down a proposal that regulation of
the securities markets be given to
the Federal Trade Commission.
The vote of 20 to 81 again demon
strated the Senate's general salts
faction with the measure as it stands
The amendment, offered by Senator
Costigan, Democrat, Oh Colorado, was
lA1C O11Olt W lAdJOA
change in the bill to be defeated
Action came after long speech by
Senator Hastings, Republican of Della
ware, asserting you can't protect
suckers" by passing laws, and We
hemently denouncing the bill as "a
definite beginning" in a transfer of
business from private to governmental
control.
Argues for Amendment.
Costigan supported his amendment
with an argument that the Trade
Commission by its background and
experience was peculiarly fitted to
take up the task imposed by the meas
ure; that much delay would be in
CURED while a new agency was organ
lied, and that much duplication of
effort thereafter would be involved.
The question Of which agency should
administer the bill has been in con-
troversy since the measure was in
troduced and even now is in dispute
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