Evening star., 1935-06-23
Vote of Is to 7
Sends Fight to
House Floor.
UTILITIES LIFE
LEFT TO S. E. G..
Care Is Taken to
Preserve State
Authority.
By the Associated Press.

BY the Associated Press.
One of the stiffest legislative fights
in sessions moved finally yesterday
from the House Interstate Commerce
Committee to the floor when the COM
mittee approved, is to 7, a utilities
control bill shorn of its holding COM
pany death sentence" and even OF
taxes on holding company dividends
Despite President Roosevelt's in
sistence on death for unnecessary
holding companies, the committee
which had been tied up for months
over the controversial measure, re-
fused to agree to that course. The
Senate already has passed a measure
calling for abolition by 1912 OF hold
ing companies not necessary and not
directly above operating power COM
panies.
All the Republican members of the
committee but one voted against the
bill that was reported. Representative
Pettingill Democrat. of Indiana, au-
thor of the defeated proposal to sub
ject Is per cent of holding company
dividends to the corporate income tax
voted present. He said he was "re-
serving Judgment on the constitution
ality of the BILL"
SimpIification Aid Refused.
The tax section went out by H.
toll vote. Then the committee re-
jected a proposal to encourage hold
ing company "simplif1cation" by ex-
empting from taxation transactions
incident to such reorganization.
Pettingill also put motion that
resulted in eliminating the section for
regulation of natural gas pipe lines
He recently called the Senate bill un-
constitutional.
The gas argument revolved around
the expediency of waiting for separate
petroleum legislation the committee
was told the President was going to
support.
In lieu Of outright holding COM
pany abolition wanted by Mr.. Roose-
welt the House bill left the question
I'D to the Securities Commission, at
which all holding companies must
register by November /. 1t would be
given broad regulatory power over
them and might allow more than one
holding company to an integrated sys-
tenn if not contrary to the public in
tereSt.
Other Notifications.
The committee also modified the
measure in other respects.
Regulation of electric power was
limited to wholesale movement across
State lines for resale or for use en-
tirely by the transmitting company,
with no attempt to touch intra-Sta
generating.
Similarly, care was taken through
out to preserve State commission au-
thority. Power to force one company
to carry electricity for another was
limited to action on application OF a
State commission or a company, but
was not to be taken on the Power
Commissions own initiative.
In like manner, securities Of such
power companies subject to State con-
Irol-now in all but 16 States-were
exempted from Power Commission
authority. To that body was left au-
thority to pass on all matters con-
cerning interstate power movement,
with the Security Commission to have
administration over holding companies.
The bill specified also that power
companies might engage in security
or property transactions up to 100000
without having to obtain Power Com
mission approval.
The House bill subjected Govern
ment power agencies such as the Ten
nessee Valley Authority to commission
control, in accounting practices, fgur-
ing depreciation cost and in opening
their records to Government inSpec-
tion. A major contention of the legis-
lation's opponents was that the Gov
eminent sought to control private
companies and leave competing Fed
eral agencies unbridled.
Committee members for the most
part were uncommunicative after the
long work of piecing the new bill
together.
Chairman Rayburn, Democrat, OF
Texas said the committees formal
report probably would be put in
tomorrow.
The bill probably will be taken up
Csee UTILITIES, Page 81