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Show MONEY & MARKETS By James McMullin Hie Teleswie'i tsehile Obere Alese W.I itwt NEW YORK People of Influence Influ-ence in the national administration administra-tion are considerably perturbed by the stock market break and the accompanying business recession. They do not share the president's apparent unconcei u about these-developments these-developments and are keen to have him do something which will tend to restore business and financial finan-cial confidence; Mr. Roosevelt has so far vetoed all euffestions that he announce another "breathing spell" for business. busi-ness. He will not postpone any part of his legislative program, nor will he consent to material easing of "ihare-the-wealth" taxation. tax-ation. But these forces still hope to persuade him to do one thing that would at least be slightly reassuring to the financial world. They are urging him not to pro-mole pro-mole employes of the 8 E C to fill the vacancies created by the resignations resig-nations of Commissioners Landia and Roes, but Instead to appoint outsiders with practical financial experience. If this advice is taken, Frank Bhaughnessy of the San Francisco stock exchange is almost certain to be named. By the same token, C. Roy Smith now head of the SEC utilities division, who is widely assumed to have the inside track for one of the appointments would be out of luck. , Important New Yorkers are taking tak-ing care not to Intrude their opinions in any way. They have learned from aad experience that to do so is unwise. But they do have hopes, because the few who have approached F. D. R. along this line stand high in new deal councils. There has been agitation " In financial circles lately about the "bearer bond problem." It is argued that coupon bonds held by unknown owners present a terrific ter-rific problem to a corporation which must obtain bondholder consent to reorganization of its capital structure and that It would be better all around If bonds were registered in their owners' names. A very small percentage of bonds are registered at present. Who would gain by general registration ? The government would like it, because it would be easier to track down wealthy tax evaders who fail to report their coupon-clipping Income. Corporations Cor-porations in receivership would be less at the mercy of racketeering "protective committee." if they knew who their bondholders were. But it must also be noted that registration of all bonda would be a sweet break for the peddlers and users of select "sucker lists." This column recently reported thst ths railway brotherhoods had agrsed not to press for ths train limit biU or the full crew bill as one of the conditions of their wage ssttlemsnt with the rail managements. We also stated that relief from these legislstive threats was a potent backstage factor in inducing the managements manage-ments to grant a wage increase. We are now advised by Mr. A. F. Whitney, president of ths Brotherhood of Railroad Trainmen, Train-men, that the employe representatives representa-tives entered into no agreement whatsoever with the carriers re-specting re-specting their legislative program. Mr. Whitney adds that the committee com-mittee representing ths managements manage-ments held out for weeks for a moratorium on legislation and that the brotherhood spokesmen 1 positively declined to consider such a proposal. A recheck with thoroughly informed in-formed and reliable sources on the management side Indicates a misunderstanding mis-understanding somewhere. The heads of the roads involved in the wage negotiations insist they received authoritative assurances that the brotherhoods would relax their legislative demands. (Copyright. 1937, for Ths Telegram) |