Salt Lake Telegram | 1935-05-13 | Page 1 | Wheeler Bill Given Senate

WHEELER BILL GIVEN SENATE SENA IE Probe of Investment Trusts Provided w WASHINGTON ASHINGTON May Maj 13 The Thc senate interstate commerce committee commit commit- tee today reported favorably y the revised revised re re- re- re bill to abolish and regulate public pub pub- pus pus- lie lic utility holding companies over th the protest of ol two members who in high higi dudgeon stalked out of the committee commit commit- tee session The committee sitting in executive session first voted 13 to 1 I to report i it I out but later two more senators senator I came in and the vote grew to 14 to 2 2 Immediately after the vote was wa taken however Senator Hastings R. R Del and Dieterich D. D Ill bitter bitter bitter bit bit- ter foes toes of ot the section to abolish holdIng hold hold- ing lag companies by 1942 unless they operate operate op- op op oj- erate crate geographically integrated units arose from the hearing and walked out A new provision authorizes the securities se commission to study investment investment invest invest- ment trusts and i investment companies companies compa compa- nies to determine what influence they have over companies whose se securities se se- they hold While permitting continued existence existence exist exist- ence to geographically integrated holding company compan systems the bill authorized au au- au the commission to require that not later than January 1 1940 19 each registered holding company and each subsidiary company there thereof of or be reorganized or dissolved whenever whenever when when- ever the securities commission finds that the corporate structure or con continued existence of f such company unduly unduly unduly un un- un- un duly or unnecessarily complicates the structure of oC the holding company system of which it is a part or Unfairly unfairly un Un- fairly or Inequitably distributes voting vot vat ing lag power powel among the holders of se se- cur or is detrimental to the proper prop prop- er functioning of a single geographically geographically i ally and economically Integrated public utility system By 1942 the measure provided al all all holding companies must be dissolved unless the commission finds that the continuance 0 of the com om- om pany puny relation is necessary under the applicable state of foreign law for forthe forthe forthe the operation of a geographically and economically integrated public ut utility util it ity system serving an economic region region re reo re- re gion in a single state or extending into nto two or more continuous states or into foreign country The bill provides that registered holding companies should not hereafter hereafter here here- after acquire Interests outside the public utility field with field with the exception tion ion of or bonds of certain governmental government government- al at units units but but leaves them free to continue continue continue con con- I in n possession of such outside in- in as they now hold The bill carries also all its previous provisions for tor putting the t federal deral power commission in itt supervisory jurisdiction over operating compan compa compa- n nie s. Ie