, 1935-09-30

Classified-In his first unanncunc-
ed ruling Jim Lands has revealed
that he win carry on the Kennedy
policy Of sane and sensible admin
istration Of the stock exchange and
securities laws.
Except for its holding company
assignment the commissions most
important current problem Is To in
augurate regulation CT overtime
counter dealers. There are 5000 OF
them, they deal In unlisted securi-
ties and the opportunities for fake
promotion OF phony stock In this
field is immense. Forcing them TO
register Is a task in itself. and the
time has been extended until jan
uary /.
The commission had first &c de-
eide what type Of securities sold over
the counter 1t would regulate. IT can
not supervise deals In the stock OF
every tw0-hy-fcur corporation It
has found that there are $1,000 cor
porations with capitalization OF ST.
100000 that are sold In this way. So
Mr.. Lands arbitrarily ruled that
only dealers In stocks Of corporations
with a $1,000. 900 or larger capitalize
ton would be regulated. That's q big
enough Job. He viii leave the other
chicken feed" to states, better
business bureaus, etc.
Counsellor -CcmptroIler General
McCarl has gradually assumed the
role which many think the Supreme
Court ought to play. He Is giving
New Dealers from the President
down advance opinions on the legal
ity Of many CT their experiments
and projects.
Mr.. McCarl has a very definite
philosophy OF government. but he
does not let his personal beliefs in
terfere with his official acts. His
only concern ~ &c make sure that
the spenders use public monies In
accord with the law. He has often
been ased 10 advise whether funds
can be used for experiments which
he may not approve IN principle.
But II the law s7ys It car be done.
he gives his ok.y.
MANY cabinet members have writ
ten him letters thanking him for
his cooperation. Again and again
he teaches inexperienced officials
how ~ keen within the law. Often
~ helps them 10 draw LEGISLATION
which he NAV think n bad. The New
Dealers used 10 neglect him and sew
eral cabinet members have tried 70
bully him. Now they come running
to him when they get In q jam.
gpotter-A comic incident shows
the unhcly respect IN which some
New Dealers hold the short, pudgy,
crIsp-haired official who has serv-
ed as norman to four admlnistra-
tions.
Navy bosses grew worried when
Mr.. McCarl weekended with PreSi-
dent Roosevelt on the Seuucia some
time aRo. The Controller general
has often stenped on the toes o. ad-
mirals and uppitv secretaries, the
last beinr Claude Swanscn. so they
were taking no chances that he
might get q wrong impression OF the
navy from what ne saw On the Sc
quota. They deccmmissicned vs.
vessel n few minutes before he walk
ed up the gangplankI
What they had In mind was this:
A decommissioned ship Is net sub
Jet to naval discipline and regula-
tons. It is, in effect. laid up for
repairs. So II Mr.. McCarl detected
dust on the brass machinery or O
sailor without a button on his reef
err, the abb would be that the ship
was out or commission for that par
ticular weekend. 1t might keep Mr..
McCarl from disappearing a bill for
brass polish OF sewing kits on the
ground the money would 90 to waste.
Radlo-Internal friction has heat
ed I'D the Communications Commits
sion on the subject Of radio enter
tainment programs. II VIII prcb-
ably become more rather than less
acute II protests continue
Several commissioners believe that
the programs are steadily declining
IN quality. Others seem 10 feel that
there should be no cracking down
at this time. and listed In this group
Is Chairman Prall Of New York. But
others feel that the commission
should require performance stand
ards as severe and high as those set
up for technical equipment. George
Henry Payne. another New Yorker,
has found the public responsive TO
this demand.
"a certain radio official commented
on Mr. Pavne's Cornell University
speech IN which he called for high
er standards on the air. and espec-
iallv mere worthwhile stuff. yes"
replied the commissioner. at Is the
first OF a series along that same
line" He named the groups and
places where he intends to repeat
the message. The radio man almost
tainted.
Complex Although many bust
ness men credit President Roosevelt