The Waterbury Democrat., 1938-05-25


 In taking this stand the SEC reversed a previous ruling made under ex-Chairman James Landis, now Dean of the Harvard law school.
 Under his ruling, the SEC OK'd a registratio statement in March, 1887, filed by the Deutsches Kon- versions Kasse for the issuance of $60,000,00 of so-called dollar" bonds, to cover defaulted interest payments on German municipal and industrial securities held by Americans. The registration state ment was approved over the vigor- ous protest of Commissioner Rob- ert Healy.
 His challenge was based on the statements failure to give the Commission the information the Securities Act requires a prospective bond issued to make public regarding his total in- debtedness. Healy argued that if American corporations had to abide by the law, there was no reason why foreign govern ments should not be forced to do likewise.
 With the SECS approval in its hands ill Konversions Kasse, through its financial agents in this country, proceeded to ex- change the refunding bonds for defaulted coupons. How many bonds have been distributed is not known.
 Several weeks ago, however, SEC Chairman Douglas re- opened the questoin of the legal ity of the Masses registration declaration, under provision of the law which requires the sub mission of new information 13 months after the filing of a prospectus. This time the SEC demanded detailed information on an item listed as "Unre- corded Debt" in the original registration.
 The Kasse replied that it could not supply the information be- cause the German government would not furnish it.
 To which the SEC, in effect, answered: "The Kasse is an agency of the German govern ment, and for it to say that the German government will not fur nish the required information is merely a subterfuge to evade the law. No information, no more bonds"
 And that is the present status of the controversy. The Kasse has not met the SECS demands, and the SEC has halted further distribution of the refunding bonds. The next move is up to the Nazi government.
 NOTE-Thte unrecorded debt of Germany is one of the most secret items of the Nazi govern ment. To disclose it would show in part, how much Hitler is spending on rearmament, how deeply his government has gone in the red to finance it's aggres- sion ill Austria. and Spain and its propaganda in CzechoslQyakia. Just Cattlemen
 E. J. Kelley, a WPA worker on, the Arizona State Guide, set out on an assignment to find out what the old-time Arizona COW punchers were like. First he did some library research, then he dropped in on cattlemen's meeting in Douglas, Arizona, hotel to get the modern slant.
 Kelley was afraid 1t would be Woefully tame. But when he got out he filed this report:
 "While I was sitting fin the meeting, one cOwman pulled a AS and aimed it at the fellow who sat next to me. This fellow had evidently been shot at be- fore, for he dropped to the floor and the bullet hit a third man. Two other bullets shot chunks out of the ceiling.
 What will happen when I go aiter some Of these smuggling stories.
 Dirty Work
 There is some "dirty work at the cross roads" pshind the locked doors of the House and Senate conference on the new merchant marine bill.
 When the measure was before the senate, provision was writ ten into it by Senator Royal S. Copeland, at the request of the maritime unions, broadening the power of the Maritime Commis- sion to prescribe minimum work ing conditions" for ships crews. Under the rules of Congress, the conferees on a bill are required to put up vigorous fight for the amendments made by their