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Richard Whitney did not have to be told that he was going to Washington in behalf of a lost cause. Nothing could divert the Administration from its determination to put the Stock Exchange into a Federal straitjacket. All President Whitney could hope for in the political battle ahead was to keep that strait-jacket from squeezing the breath of life entirely out of the stock trading business.
Last week in Manhattan Mr. Whitney put in a good hard week's work against the Exchange Bill. Summoning the senior partners of the biggest wire houses, he outlined the bill's high points. Soon the private wire systems flashed to managers and resident partners in 1,200 branch offices messages like this: "National Securities [Exchange] Act is a matter of grave concern to every owner of real estate or securities, to all officials of corporations or banks. . . . It is no exaggeration to say that very few of your friends or clients can afford to disregard this new menace to national recovery. . . . Please discuss it with others and urge them to acquaint themselves with some of these vicious provisions.''
Much shrewder and more to the point, Mr. Whitney last week wrote a letter to each & every one of the 800 corporation heads whose stock is listed on the Exchange. This list, on which the public value places a valuation of $50,000,000,000, is not only a roster of U. S. Big Business but it also blankets most of the work of the nation and the livelihood of millions and millions of people. Through corporation presidents and officers Mr. Whitney was, in effect, aiming his appeal at the smallest stockholder and the lowliest employe. Said he in his letter:
'This bill while purporting to regulate stock exchanges, in fact contains so many provisions which would seriously affect listed corporations and their officers, directors and principal stockholders that I have taken the liberty of sending you a copy.
"Sec. 11 ... requires corporations which are listed upon an Exchange to file with the Federal Trade Commission a registration statement . . . [which] must include an undertaking by the corporation to abide by all future rules and regulations. . . . Elaborate financial and other statements . . . must be filed. . . .
"Sec. 12 ... requires every listed corporation to file with the Exchange and the Commission . . . annual and quarterly reports, including both a balance sheet and profit and loss statement . . . monthly reports including among other things, a statement of gross sales or gross income. . . . Sec. 18 (B) permits the . . . Commission to prescribe the forms which must be used; the items and details to he shown . . . also the methods to be followed in preparation of accounts, in the appraisal and valuation of assets and liabilities, in the determination of depreciation and depletion. . . .