Evening star., 1939-03-26

That is all that would be necessary" he
says.
At any rate, the Yale law professor
was pressed into service under Ken
nedy's Craftsmanship Of the S. E. c. to
be director of the protective committee
study, and he had definite foothold IN
Government service.
AS practically every man. woman and
child of reading age now knows, he was
Commissioner Douglas before 1886 was
ended, and in 1887, when James M. Lam
dis, Kennedy's successor, resigned to be-
come dean of Harvard Law School,
Douglas was advanced to the chairman
ship.
This protective committee business is
one of Mr. Douglas hobbies and an &C
complishment of his tenure as chairman
In which he takes pride in the sponsor
ship of legislation designed to make as
certain as possible that protective COM
mittees protect.
In theory, at least, such committees are
supposed to safeguard securities holders In
corporate reorganizations, but Mr.. Doug
las got an idea after seeing the same
faces on committee after committee, that
the impression was abroad that it was a
profitable career, and that the little fell
lows were not being done right by. So
the outcome was measure, pushed by
Representative Chandler, Democrat, of
Tennessee, under which the S. E. c. must
be called by the court in a conNultant's S
capacity where more than 100000 in
assets is involved in a reorganization, and
may be called in in any instance.
One result of this legislation is that
the commission now is sitting in on the
notorious McKesson- Robbins case, in
stead of remaining on the sidelines.
Another measure in which Douglas is
interested is the Barkley bill, which, in
effect, would require trustees under bond
sponsibility for the welfare of the in
vestors.
Critical Of Directorates.
This principle of responsibility in high
places, it should be said, is one to which
Douglas Is firmly committed, as evidenced
by his frequent insistence that it be OBJ
served. He has been particularly critical
of many modern directorates which he
once described as being loaded down with
business colonies of the honorary type
-colonels who are ornamental in parade
but fairly useless in battle"
And right there is probably the key to
the Douglas hilosophy-looking out for
the little fellow-or as he in all likelihood
would put 1.-THE little guy" For the
prospective addition to the Supreme
Court often indulges in phrases that are,
to say the least, slightly foreign to the
atmosphere of the bench.
He is not so much concerned with the
big fellow, having come to the conclu-
sion early in life that as class the big
ones are well able to take care of them
selves
At that, Douglas has not proved to be
the witch-burner that Wall Street feared
when he took over the craftsmanship Of
the commission.
His public utterances on financial
abuses prior to that time had led the
bankers to believe that storm cellars
would be in order when Douglas became
chairman. Nor was the opening blast
of the new regime any more assuring.
But since the day he warned that the
stock market scales must be as nearly
as possible "tamper- proof, with no con-
cealed springs-and there must be no
laying on of hands," relations, on the
whole, have been good. Observers be-
lieve the Richard Whitney expose facili-
tated the market reforms Douglas sought,
but whatever the cause, he is satisfied
with the outcome, and feels the results
have a certain element of permanency.
1.-THE time was when one in the Street
was pretty well assured of financial sue
cess If he wore the right necktie and
belonged to the right club" he said last
year In IN address to tho graduating