Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-02-12
INVESTORS

| I" NO. hNS
Continued From Page AL
ards or maintain enough capt.
tai to protect their customers
funds.
On the basis Of The Star
series and the report of a spe-
cial committee of the Bond
Club Of Washington that abuses
in securities transactions are
widespread here, Mr.. Tobringel
said:
II have asked the Corpora.
ton Counsel with all conven.
lent speed to examine the II.
censing Of securities dealers
and their statesmen under the
general licensing authority oil
the commissioners. and to pre-.
sent to the Board Of Commits
sioners for tentative approval
a set Of regulations, subject to
further modification in a pub
lie hearing.
II have also asked the Cor
poration Counsel to inquire
into the desirability for per-
manent legislation affecting
this area Of trade and to adj
wise the Board Of Commission
ers Of the necessity Of legisla-
ton where regulations alone
cannot adequately prevent the
evil sought to be corrected.
Joint Effort Proposed
Both in respect to proposed
regulations and the possibility
Of legislation, I have suggested
that the Corporation Counsel
and the Commissioners work
with reputable Representatives
in the brokerage and invest
ment field and other interested
parties" .-.--.---.
One interested party was
United States Attorney Ache
son. He said he has proposed
to Mr.. Tobriner that the Com
missioners consider what pre-
ventive action can be accom-
plished through licensing pow
ers and that joint action be
taken to propose legislation.
He made it clear that he re-
CARDS a remedy for the prob
lem here as o common task be-
tween the Corporation Coun-
sells office and his! own. He
said he would be glad to CO.
operate in helping to draft suit
able legislation.
At the same time, however,
he wants to 60 forward with
any prosecutable complaints
where investors have been de-
frauded or money has been OBJ
tanned through misrepresenta-
ton.
Mack Request Significant
Representative Mack's re-
quest for information from
SEC Chairman Cary was par
ticularly significant because
his subcommittee has legiSla-
tive Jurisdiction over the SEC
and he was the prime mover in
the congressional action direct
ing the SEC to make an over
all investigation Of stock mar
kets and the securities business
nationally.
Mr.. Mack, an Illinois DEM
ocrat, called the SEC chair
mans attention to the state
ment including The Stars
series that experts are con-
WINGED promoters will continue
to prey on Washington in
vestors as long as no local law
exists to discourage them.
I'm connection with the dis
cussion which you and the
commission had with us
as to the need for and your
suggestions upon additional
legislation for the protection OF
investors" Mr.. Mack wrote Mr.
Cary, ut is my hope that you
may be able to comment to us
upon the accuracy of these
press stories, upon the ade-
quacy Of the commission regu-
lation Of the securities business
within the District and upon
any need for further legisla-
tive action in this field"
w. J. Grow, administrator Of
the Washington regional office
Of SEC, already has said pub
licly that he favors a law here
to assure local control over the
brokers and their representa-
tives.