The Waterbury Democrat., 1937-05-27
|. BEHIND |THE SCENES
 WASHINGTON
Y R0DelEY 0UTchEF Democrst Washington
 Correspondent

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 Secret Battle Going on Over
 Whether Securities COm-
 mission Shall Protect In-
 vest0rs or Bankers . |.
 Robinson Appointment to
 Court Will Bring Battle for
 Senate Majority Leader
 ship.
 Washington, May 27-The ques- ton whether the Securities Ex- change Commission should empha- size desire to "be fair to the brok- CTS and bankers" or a determination to protect the investors" has again become an issue, following resig- nation of Chairman James M. Lan- dis.
 Crusaders for adequate regula- ton and for enforcement of the securities act, claiming that the New Deal has provided neither, insist that ROOSeveIt's decision will tell whether the administration really means its frequently reiter- ated promises to protect security holders.
 Commissioner William O. Doug las is out in front as the most likely successor to Landis. But if the professional manipulators of what Justice Brandeis used to call "other peoples money" have any, thing to do with it, Douglas won't get the job.
 Says Investors Gypped
 Douglas is an able lawyer and an expert on corporation law. When he was at Yale he was said to be one of the highest paid law pro- fessors in the United States. He has had experience in the securi- ties business.
 He handled one of the SECS outstanding jobs-an investigation of corporate reorganiza tions and the work of protective committees, plan submitted to congress. He demonstrated his fearlessness in speech to the Bond Club during which he told New York bankers that investors were being gypped by financial concerns which reaped commissions on stock and bond flotatiOns far in excess of the value of their services.
 Douglas boldly declared in favor of competitive bidding for the privilege of handling new issues, as against the traditional Wall Street custom, which he said often enabled certain banking houses to Illonopolize such business. He charged that fees were being ex- acted for underwriting when there was no need for it, and predicted that bankers would lose their finan- cial power over such processes as management, formulation of indus trial policies and reorganizatons.
 Wall Street didn't like it at all. And its emissaries, as Douglas pre- slsmabIy must hay: anticipated, have been pulling all possible wires here to see to it that Douglas doesn't succeed kandis. Large contributors to the Democratic campaign fund have joined in the stop Douglas movement. Dr. AL exder Sachs of Lehman Brothers has been reportedly working for appointment of "Safe" chair man. Although the purpose of the securities act is to regulate heAbmH0 aud Hn n. tect the investor, it is being seri- Ously proposed that the commits sion ought to have one or two brokers among it's members.
 Investors may well watch as close ly as they can the progress of this behind-th -the-scenes battle. The ap- pointment of SECS next chairman will shed some light as to the integ- rity of the New Deal.
 Battle for Leadership
 If Senator Joe Robinson of Ar kansas goes on the Supreme Court, the fight for the very important post of majority leader in the Senate IS expected to be between Senator AL ben Barkley of Kentucky and South Carolina. Don't ignore the "if.~
 Barkley would be the adminis- tratiOn candidate for the job. He Is liberal without being radical, and comes from a state which is far enough north and far enough south to figure as a s0ftening fac- tor in the troublesome sectional problem in Congress. He gets along we'll with all factions and has qualities of leadership.
 ByrneS also is popular, but not so much with liberals as with con- servatives. Although his ability IS obvious and his relationships with Roosevelt have been close in the past, the White House hasn't for given him for seeking an amend ment to the Guffey coal act which would have forced the President to sign-or reject-an unqualified con- demnation of sitdown strikes.
 Byrnes is out after the powerful position. So, presumably, is Bark ley, although less obviously. AS soon as Justive Van Devanter re- signed, Byrnes became the busi- est promoter in the Senate for the Supreme Court aspirations of Rob- inSOn.
 It is rather vital to the President to have a Senate leader of unques- toned loyalty. Consequently, If Senate Democrats should choose Byrnes in preference to Barkley, 1t would mean that the current Senate revolt against the White House di- rection had gone far into the dan- gerous stage. Copyright, 1887, NEA Service. Incl VANnCDMADV TC