Indianapolis Times, Volume 46, Number 24, Indianapolis, Marion County, 8 June 1934 — Page 17

■TUNE a 1933.

■PECORA PROBE | LAID BASI? FOR ! MARKETS BILL Public Opinion, Shocked by Disclosures, Insisted on Rigid Control. BY THOMAS L. STOKES Times Special Writer WASHINGTON, June B.—By the simple act of writing his name across the bottom of the engrossed copy of the Fletcher-Rayburn stock market bill, • President Roosevelt brought to an end one of the most dramatic, fascinating and fruitful stories in American legislative history. It winds back over two years to - the Hoover administration where *'t all started; runs in chapter after . chapter through long days in a senate committee room; sketches graphically the fall of financial giants; depicts the loot of banks and industries; portrays, so that all * should know, that delirious era when people gambled their money 4 —and other people's money—on that great roulette wheel in Wall Street. The bill which President Roose- * velt signed endeavors to make the stock exchanges market places and * not gambling houses. Vivid to the End The story was vivid to the end, . for to the very last the great financial overlords still fought with . their money and their influence to ' prevent what congress believes is effective reform. Properly, the last act was performed by Franklin D. Roosevelt, who challenged the powers boldly in his campaign and pledged himself to “drive the money changers from the temple.” Herbert Hoover made no such pledge,, but he had some part in thus reform. This goes back to the dark days in February, 1932, when the stock market tumbled lower and lower. Angered and alarmed, Mr. Hoover called a group of senators of the senate banking and ’currency committee to his office Chairma . Peter Norbeck (Rep., S. D.), Senator Daniel O. Hastings (Rep., Del), and Senator Frederic C. Walcott (Rep., Conn.). The President told of his suspicions of “bear raids” \ the stock market. He wanted an investigation. Senator ha - *■ ! —s a resolution. Started With Pecora On March 4, just a year before Mr. Hoover left office, the senate passed the resolution. It got nowhere until a pugnacious. persistent Italian-American lawyer, Ferdinand A. Pecora, -a me along. Wall Street had heard of him then. Now it knows him too well. Meanwhile, the Democratic party at Chicago had gone on record for legislation to regulate the stock market. r It was not until March 13, 1933, a few days after Mr. Roosevelt ‘ took office, that Mr. Pecora was chosen counsel of the senate bank- * ing committee to continue the investigation. With all the solemnity of a court of impeachment, he opened the in- - vestigation on May 23 with J. P. Morgan, himself, in the witness chair. Midget Incident Recalled The public laughed when a circus . publicity man lifted up a female midget and placed her securely on , the great Morgan knee. But the public was shocked with the Morgan admission that he had paid no income tax for three years. Just as amazing testimony came . from the long procession of financial giants—Whitney, Kuhn, the

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HORIZONTAL - Answer to Previous Puzzle oil. * What country's fiTtr u,i: ll . | nl . k 10 Fifth month, flag is shown rr 1 M Pf 11 Type standard here? 14 Sun god. • , This country 18 A defiance, probably was Q N £MP[E.ILIMTIE DME P■ 19 ©re cavity, discovered by S AMT 01 ITiSE 21 Golf device. the * I’KATHARINE ILHNpOa 22 Human head. 12 Astringent. -JaAH L/rDDiiDW 23 To skip. 13 To sort. IcpBMlE Ni HEPBURN 24 Pigpen 15 Hoax. UPMsfil fDAiiMM 25 To analyze*. 16 Flying |PjAiGpBAjC|TiKi ETsI&WLII |EI 26 Festival, mammal. IAih|Q[£pBMIEJAjNffBBF| i |L[M[ 27 To mention. 17 To make IT[ I |A P A.BBA G OMPi I IEITiAI 28 Legal claims, fabric. LE.ni-l l ITITIIIeMoIMiE InHIJ 29 Agreement. 18 Demure. _. 33 Loans 20 Either. 61 Zoncs of 34 Business 21 Definite article 40 Rlcl ?ard depositions. places. 22 Jumbled type. 52 Walking sticks. 3g 24 Ocean. try 3 premier. VERTICAL 37 To exchange. 25 Kettle. 42 A metal. * John and Se . 38 Electrified 26 To depart. 43 Device for bastian —-* particle. 27 Resembling holding ice. discovered 39 Half an em a star. 44 Stop! this country 40 Sores. 29 Soft food. 45 Spread of • in 1497. 41 Essay. 30 Affirmative an arch. 2 Axillary, 43 Genuine, vote. 46 Correlativi 3 Almond. 45 To observe. 31 Italian coins. of groom, 4 Form of “be.” 46 Buddhist 82 Morindin dye. 47 By. 5 Epoch. festival. 33 Dregs. 48 Ovule. 6 Hub. 47 Play on words. 35 Jacques 49 Spirits. 7 Poem. 48 Spain. discovered the 50 To be in a 8 Second note. 49 Therefor. St. Lawrence rage. 9 Seed yielding 50 Fourth note, "a. TANARUS" erT*" -iifflziiprzipb w y 33 p 35 3b 37 aT 1 ■ 1 I "P - $r “ nrl m i 1 l-Mro

Van Sweringens, Wiggin—questioned by Mr. Pecora. They and others told the whole sorry story of the boom era. The committee delved into the operations of Dillon. Read & Cos., Kuhn, Loeb & Cos., the Chase Securities Company, and learned how men use the money of others to build up fortunes for themselves and their friends by strange devices called pools and syndicates and joint accounts. It went behind the doors of closed banks in Detroit and Cleveland—and people found out why they had lost their savings. The senate investigation, which became so hot that there were repeated attempts to stop it, was carried to the end by the force and determination of Chairman Duncan U. Fletcher (Dem., Fla.). It showed clearly enough what had to be done. With President Roosevelt's backing, committees of house and senate wrote their bills. Compromises were made. But a strong bill emerged and was swept through congress by an aroused public opinion. It outlaws all sorts of manipulative devices. It regulates shortselling, which so plagued Mr. Hoover. It fixes requirements for margins so that it no longer will be possible for the little fellow to get into the market on a shoestring. It requires corporations, whose stocks are listed on the stock exchange, to tell the truth about the condition of their business through regular financial reports. It prevents banks and corporations from pouring money into the stock market for speculation as they did in 1928 and 1929. Among the strongest supporters of stock market regulation are many who believe that while this measure is a good step in itself, it

is neither perfect nor enough. As congress has learned time and again, practically every law has loopholes in it. Undoubtedly, some will be found in this. More, as amendatory legislation becomes necessary, the stock market regulation bill will have to be strengthened here and there. Thus, this with the securities act, constitutes an important step toward financial reform. But other steps will have to be taken.

Gone, but Not Forgotten

Automobiles reported to police as stolen belong to: , Mrs. George Seaborg, 1135 Exeter avenue. Chevrolet coach. 41-007. from in front of 1135 Exeter avenue. Phil Sacks. 302 North Capitol avenue. DeSoto sedan. M-540, from Ft. Wayne avenue and Alabama street. C. J. Southwick. 1746 Lambert street. Ford sedan. 92-352, from Belmont avenue and Miller street. Willis E. Kirkpatrick. R. R. E, Flora. Ind., Chevrolet sedan. 545-150. from Ohio street and the canal.

BACK HOME AGAIN

Stolen automobiles recovered by police belong to: Thomas H. Beecher. 406 East Fifty-first street, Plymouth coach, found near Plainfield. stripped of everything except the body. Floyd Walton. 717 West Michigan street. Ford sedan, found at New York and Muskingum streets. G. D. Wells. 1842 North Rural street, Studebaker sedan, found in front of 2176 North Illinois street. Harold Darum. Evansville, Chrysler roadster, found in front of 714 North East street. F. E. Swails. 714 North East street, Buick sedan, found at Park avenue and Walnut street.

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THE INDIANAPOLIS TIMES

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