| Show j. j I 14 The Financial Whirligig t J By JAMES McMULLIN NEW N YORK Sept Sept 17 The 17 The se securities se- se e exchange commission ha has set et up no machinery yet to administer adminis adminis- ter he the holding company act and il it I wl will probably bl bo some time be before re ret it t I is I organized to cope with its it it new duties dutes Commission executives privately admit that the te law Is I so o involved and holding company l so complex comple they tey haven't the faintest notion how or where to noton begin their task of regulation But meanwhile very meanwhile very very unofficially om commission agents have established established contact with wit two important holding groups ups They are groping about for tor g a grip on their problem problem- problem trying tring to learn just how holding company wheels go round and to familiarize themselves wih with their Intricate Intricate- mechanics Another Anoter rca- rca Ion eon on for making these c contacts be before be- be fore foro ore the to commission actually takes over Its it chore is i to sound out the te cora utilities attitude and find out Whether hether heter cooperate or not they are disposed to New York experts who have studied the te holding company compan bill bi have have come como to the te conclusion that tat utility groups can be bo divided into four classes Insofar as a the tho effects of cf the tho law are concerned The first lass class consists of multiple holding companies which must be beby beby be- be be by y definition elImInated defInitIon eliminated or drastically cally call simplified This Thi list Includes include Electric Bond Share and probably its larger lager affiliates like Electric National Power Power ver Light Po Light and ad American Power and ad Light Light United Light Power Standard Stan Stan- dard dar Gas Cities Cites Service Associated Gas Ga Electric Stone Stano Sr Webster with wIt Engineers Public Publio Service Service- which it controls contrOls and and ls-and and others The Te second class cas is made up of ol holding companies which might be bc granted anted exceptions The Tho law states that tat registered companies shall be permitted to control one ono or more additional integrated systems if the te commission finds that tat a such additional additional ad ad- diona systems cannot canot be operated independently without substantial loss or b where the continued continued continued con con- combination of such systems under control of the holding comay company com corn pany Dany ay Is not too largo large to o impair the te of localized management Advantage management This Thi list includes the following American Gas Oa might be considered Interconnected and and reasonably reasonably rea- rea reas reas- contiguous American Waterworks electric electric com cam cm panics Sale are a Integrated and and could possibly po- po pos pos- sibly be simplified Columbia Gas Ou k Electric proper Electric proper proper- te ties tics are ae mostly moUy contiguous Commonwealth Ie Southern Southern has hM has a contiguous southern louthern system but a scattered northern one excellent management and amalgamations might help mih North American ean Clean American clean record and and excellent Norh local loal management might rate rte special consideration despite despie geographical geo graphical dispersion United Gas au corporation under corporation under under Electric Electric Ee- Ee Elec Elec- unite Power Light but could probably probably be bs simplified United Gas GM Improvement mostly Improvement mostly In Unit Pennsylvania mIght might might Have bave to t di divorce divorce dl- dl I vorce small Imal Connecticut c companies The third class consists consist of Investment Investment Investment Invest Invest- ment Te companies cass primarily in the There is some utility field hold ques- ques question queston lon tion as to the extent to which they ton come under the jurisdiction of or the I law aw This group includes United Corporation American Super Power Eastern States Power Central States Power Niagara Shares and United Founders The fourth class consists consist of at holding holding hold- hold ing ng companies operating In one state or strictly contiguous territory or ar outside the United States These will be virtually unaffected by the law wi law Among Amons them are Public Service Service ice ce of or New Jersey Consolidated Gas GM of jf New York Consolidated Gas GM of at Baltimore Niagara Hudson Power Pacific Gas Gns Electric Southern California Edison Louisville Gas Electric and American and Foreign Power New York shares Washington Washington's concern about about the failure of reemployment In- In In Increase Increase to keep pace with the crease in business activity Well Well- Wel- Wel posted sources concede that the major depression problem is i as far fax from solution as ever While conservatives conservatives con con- are pleased that this riddIe riddle riddle rid rid- dle dIe may be politically embarrassing to F F. D. D R. R once the public is aware of it it they also recognize the possibility possibility of eventual l dangerous repercussions repercussions repercussions reper reper- on industry Insiders learn that tat private government government gov gov- eminent figures more figures more accurate than any computed heretofore ac heretofore ac actually tan show an increase of unemployed between June Juno 34 3 and June 35 3 i and ad speedup methods are partly party responsible responsible technological cal improvements improvement improvement in In production ton even more so The depression gave tremendous impetus to adoption of saving labor-saving inventions Industrial output per man-hour man has risen rien by i cent since 1929 about 23 2 per ice Thoughtful observers can see no alternative to to huge permanent re relief relief re- re lef lief rolls rols except except in the gradual shortening shortening shortening short short- ening of ot the work week to 30 hours hour ad and possibly also the adoption of age limits Copyright 1935 t for r The Te Telegram |
