Salt Lake Telegram | 1935-11-16 | Page 14 | The Financial Whirligig

The Financial Whirligig By JAMES JAME McMULLIN 1 NEW YORK Nov 16 The 16 The se securities se se-I exchange commissions commission's tactics tactics tactics tac tac- tics In dealing with the big utility groups which groups which will be nearly unanimous in refusing to register under the holding bolding company act act act- will be based on public relations rather than law The commission privately fears that the power companies com com- companies panics will have a large measure of public support for their recalcitrance recal recal- especially especially in view of Judge Colemans Coleman's decision So although Jim Landis talks vaguely of unspecified penalties to tobe tobe tobo be bo visited on those which do donot not register you will find him trying hard bard to appear sweetly reasonable and to make re registration look like the tha mere innocuous formality which power men claim it isn't The Tho commission is particularly anxious to impress utility security holders to the point of bringing pressure on stubborn managements This is frankly rated the only hope and and a mighty slim one at that that that- of swinging the holdouts into line inc So o far security holders whenever holders whenever they ley have had a chance to express themselves at company meetings meetings- meetings meetings- have ave invariably urged their man man- to an even cven more belligerent ent nt opposition to the new deal It looks as if It it would take a five five- star tar diplomatic miracle to induce them hem to change their minds One Ono more knot in the nightmare tangle angle with which the securities cx- cx change hango commission is confronted is uncertainty about the market action acion ac ac- tion ion of utility stocks tocks when failure to o register becomes an official fact The he commission figures they are arc likely kely to swing sharply up or ors down but but has no idea which The The first would make the commission commission com com- mission look foolish the second se would bring a fearful tearful razzing down on n its head for disrupting ery ry Either would be likely to upset upset up- up set et general market stability anc and create fresh problems of ot market control Insiders rs understand there is strong trong sentiment within the commission commission commission com com- mission in favor of stalling of off a alin lin final inal l showdown by postponing the registration date until the supreme court rules on the constitutionality of ot the holding company act But Bui there here is also opposing sentiment that hat this would be a fatal confession of weakness No official decision has been reached on this point as asyet yet Some time ago this column noted that hat many business men were critical crit crit- cal leal of the new deal questionnaire sponsored by the U. U S. S chamber of commerce contending that the queries were too obviously designed to o Inspire replies unfavorable to the administration The current record on the chambers chamber's chambers chamber's chamer's chamers cham- cham bers ber's referendum confirms this critical crit crit- cal ical attitude The fact that an overwhelming majority of the business business busi busi- ness groups which have replied to ho tho questionnaire have been adverse adverse ad ad- verse to new deal policies is less significant than the number o of groups which have not yet replied at it all aU Informed sources prophesy that hat other local chambers besides the one at Columbia S. S C. C will resign re resign re re- i sign from the national organization i in n protest I Some New York privately privately concede that the referendum wont won't even serve a useful propaganda propaganda ganda janda purpose because the adminIstration adminIstration admin admin- can so easily claim that tha the cards were deliberately stacked against it Cop Copyright 1935 for The Telegram I