The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-07
WANT AMENDMENT
OF FINANCE LAW
Bankers Seek Change to Per-
nit Organization Of Big
Utilities Corporation.
PLAN TO EXTEND CREDIT
Under Existing War Statute a
$2O,OOO,OOO Financing Com.
pany May Be Formed.
PLAN TO EXTEND CREDIT

A movement is on foot to make IN.
War Finance act more nearly practicable
and workable than II Is The plan Is IA
secure an amendment that will permit
the War Finance Corporation to extend
its credit and act az an underwater IN
financing projects Of large magntud.
and that will remove some Of the re-.
strictive limitations in the act as i,
stands. This important movement was
disclosed yesterday. following a meeting
Of committee of New York bankers
headed by James n. Wallace, preslden,
Of the Central Union Trust Comparl
and formed to aid large financing prof.
ects by organizing a 100000 600 War
Finance and Utilities Corporation.
This meeting was attended by NJ.
Wallace, Thomas w. Lamont Of J P.
Morgan & Co.. Charles II. Sabn. rres.
dent of the Guaranty Trust Company:
Frederick Strauss OF J. w selgman
& Co, Charles y. Norton Of the First
National Bank and one or two Others
II was called to discuss the ruling ..
Attorney General Gregory, which, as De.
scribed in THE SUN last Saturday, lin
tied the loans OF the War Finance Cor
poration to $50,000.000 and nulli1ad thu
plans to organize the slo0,ooo,o0O cor
poration.
Prior to the meeting more than ora
member of the committee was inclined
to advise the disbandment OF the com.
mittee, the designations of the members
and the despatch of a hot letter of pro-
test against the Attorney-Generars ru'-
ing to w. p. G. Harding, governor NJ
the Federal Reserve Board and manag.
ing director Of the War Finance Corpo-
ration. Calmer counsel prevailed, how.
ever. and It was decided to keep the
committee together. to discuss plans for
securing all amendment to the War Fl.
nance act and to organize relatively
small corporation to take care of financ.
Ing projects of lesser magnitude that
can be handled under the law as /.
stands. There will be another meeting
of the committee next week.
Reclamation Rumor Denied.
Following the meeting James y. Wal
lace, chairman of the committee, declined
to make any announcement, but denied
the report current yesterday that '7e
committee had resigned in body The
committee however, II Is understood
drafted letter to Managing p!recto-
Harding. pointing out that the Attnr'
ney-Generals ruling rendered the war
Finance act unavoidable for large un-
dertakings and urging the advisahili?
of an amendment at an early date.
THE War Finance act as 1t STANDS
with the Limitation of S5O,OO0,ooV loan
to any one corporation said memoe'
of the Wallace committee yesterday
absolutely unavoidable. One o. Two
things must take place or big nnan'a'
projects Will have to be handled without
| rnrnpr4
The act must he amended or the Au0r-
ney-General must change his rulirE
There is little likelihood that Attorney
General Gregory, having delivered
formal opinion, will alter It, So far as
can see the only remedy LEFT is 70
secure an amendment to the act liseI
1t is probable. however. that the bali
ers under the circumstances Will Try =
do the best they can with the existing
machinery and smaller CoIporA'ior
saw one of S2O,O00,000. may be or-iH'
lied to take advantage of the l'm.''l
aid that can now be extended ny the
War Finance Corporation.
There was report YESTERDAY 'ha'
large Baltimore concern mixing Stee'
tubes has succeeded in getting the VIZ
Finance Corporation to approve its ioHa
term notes as a basis for Federal reserve
rediscounts. This report may be cor
rect. but thus far the New York Fed
eral Reserve Bank has done no business
OF this sort. If the reserve bank Of
that district rediscounted such notes
they must have been endorsed md E'a
anteed by some national or state nd'
member OF the Federal Reserve Lah"
which kept IN its vaults - per ren' o.
| the issue and redisCounted tn" balance
The War Finance act provides 10Y vi"