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Show MONEY & MARKFTS By James McMullin Th Telegram's Eachnlv Observer Alone WaH Street NEW YORK Th war between th securities and exchang commission com-mission and th ruling faction of th New York atock exchange is back in the trenches, after a brief skirmish in ths open. Chairman Douglas and Pruidtnt Cay have swapped barrages for the record, but th next move is up to th latter, lat-ter, and it isn't likely that It will be given much publicity. Wednesday the stock exchange governors meet. Mr. Gay in advance ad-vance was supposed to submit to them his nominations for a special committee to study the whole question of reorganizing the stock exchange management and rules. The makeup of th committee could be counted on to Indicate whether he would cooperate sincerely sin-cerely in working out the reforms desired by the S E C or was sparring for time in the hope of preserving the exchange as a "private "pri-vate club." Before the meet it was a 20 to 1 shot that the com-" com-" mittee would be packed tn -furor of th status quo. SEC Chairman Douglas Is no Impetuous radical and is not inclined in-clined to be unreasonably impatient. impa-tient. They found this out as well as that if the boys Insist on asking for trouble, chances always are they will get It in carload lots. Though the SEC has no authority au-thority to force a revision of ths exchange's msnagement setup without additional legislation and congress might be avers to enacting en-acting such legislation during a business recession. It was evident that this needn't stymie th commission. com-mission. It has sweeping authority author-ity to change the rules of member trading if it chooses. It can also call public hearings to bring out evidence in favor of management reforms. Continued refusal to cooperate co-operate will leave the exchange wide open to a blistering backfire. But the old guard can't seem to realize that the gun may be loaded. New York has long since learned never to be surprised by anything Sentaor Borah does, but financial and industrial leaders are distinctly disappointed in Joe O'Mahoney. The Wyoming senator has been quite a hero to conservatives since the supreme court fight last summer. sum-mer. That made his current revival re-vival in collaboration with Borah of his federal licensing plan for all corporations doing any sort of interstate business a doubly painful pain-ful shock. This proposal Is more obnoxious to business chiefs than any meas-ur meas-ur sponsored by the White House. It would lay th foundations for regimentation that might make N R A and the wage and hour bill look like kindergarten stuff. Apparently Ap-parently F. D. R. has littl Interest Inter-est in it, and its chances for enactment en-actment are slim, but the mere mention of such a fell possibility is anything but soothing to jumpy nerves. Business men expected congress to hold their hand and smooth their pillow, not to suggest sug-gest another smack on the nose, (Copyright, 1937, for The Telegram.) |