The Waterbury Democrat., 1940-04-05

hang a sinner on the Democrats. Rep. Leon Sacks was making a speech castigating COP "misrule and anti-labOr bias" and citing various instances in the past dec- ade. Springing to his feet, Rep. James McGranery, another Phil adelphia Democrat, asked rhetori- cally:
 And how about that governor of our neighboring state, Ohio, who called out troops to sup press strikers? Wasn't he Re- publican?"
 'He certainly was," thundered back Sacks. My distinguished colleague and learned friend is absolutely right. He was indeed a Republican and there you another example of Republican bias against labor."
 Ther two Pennsylvanians sat down, much pleased with them selves and their bull's-eye. The Republican side sat silent. A few minutes later after the House had passed on to another subject, McGranery suddenly poked Sacks in the ribs.
 Hey" he exclaimed out of the side of his mouth, II just remembered. It wasn't Ericker (present Republican Governor of Ohio) who called out the troops. It was Davey (his Dem ocratic predecessor) who did that"
 WALL STREET COUP
 The Wall Street Old Guard, toppled from Stock Exchange con- trol following the Richard Whit new scandal, is quietly setting the stage for comeback.
 One of the reforms forced through by former SEC Chairman William Douglas was that a majority of the board of gover- nors of the Exchange should be commission brokers instead of bankers. Douglas contention was that the brokers, dealing directly with the public, were more pub Unconscious than bankers.
 AS a result of this change, Ed ward Bartlett, partner of E. A. Pierce & Co.,, largest commission brokers in the country, was made chairman of the board, while Rob- ert Hutchins, president of Chicago University, and General Robert E. Wood, head of Sears, Roebuck, be- came members representing the public. For while things went along smoothly, but the Old Guard, while subdued, was not licked.
 When Hutchins demanded disciplinary action against J. P. Morgan, Thomas Lamont and other Wall Street big shots for not revealing Whitney's specula- into action and blocked him. Hutchins thereupOn quit in dis gust.
 Months later, after the incl dent had blown over, a utility banker was appointed in his place as representative of the public.
 The following year the Old Guard scored again by quietly eliminating several brokers from key places on the Exchange board and replacing them with bank CTS. A few months ago it Chalked up a third victory when General Wood, irked by the refusal of the Exchange to set up "custOmer banks" for the protection of in- vestors, announced that he would quit at the end of his term this spring.
 Now, with the annual board elections soon to take control. the Old Guard is quietly preparing to regain complete control by oust- ing Bartlett.
 The secret plan is to nominate one of their group to oppose Bartlett and by sudden, whirl- wind campaign to jam him through. Then, with the chair manShip in their hands, they will be in a position to go gum ming for the final prize, the presidency of the Exchange.
 NOTE-The Investment Bank CT Association, whose leaders are closely allied with the Wall Street Old Guard, is raising $5OO,0OO war chest to finance an attack on the SEC. IBA moguls also are negotiating with a high-powered advertising firm to handle the publicity of their campaign.
 Copyright, 194O by United