The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-10-10
Trends
Associated Gas to
Take Steps to
Clean House.
by VINCENT LYONS
Times Financial Editor

Il Gas and Electric Co, the chief
critic of the Wheeler Rayburn
holding company bill when that
measure was in the process Of be-
ing enacted into law, should he
among the first of the power and
light companicG TO take steps to
clean It's house in accordance with
the bills provisions, which go into
effect Dec l.
In a hearing before a Federal
Judge in New York City it was dis
closed that plans are under way TO
bring about a simplification Of the
company's corporate structure. BY
this method the Associated Gas and
Electric Co. hopes to rearrange
the system in such manner that
there are one or two fully integrated
holding companies controlling the
approximately 200 underlying OPP
Grating companies.
Thus. such a shake-up would
bring the company into the Wheel
er-Rayburn acts desired field OF,
at the most, two holding COM
panies for each system Of COM
panies. More than that, it will
mean the elimination Of several
score holding and sub-holding
company units which now cOmpli-
cate the structure Of the Eastern
utility.
A T the hearing it was disclosed
L n that "a of the holding COM
panies already have been removed
and that steps are being taken for
the elimination Of Is others. OF
the units already relegated to the
scrapheap as corporate entities, 81
of them were welded into the fabric
of other subsidiaries by means Of
mergers or consultations and the
remaining three were peremptorily
dissolved.
Of course it might be argued
that there is little else for the AsSo-
ciated Gas and Electric Co. to do,
under the circumstances, but TO
comply with the act. In view OF
the widely circulated reports of the
unconstitutionality of the law by
Spokesman for the public utility in
dustry. Associates ambitious at
tempt to comply with it in the face
of such attacks endOWs it with some
significance.
The utility's move to clean its
house might mean one of two
things: Either it is not so sure of
the unconstitutionality Of the leglS-
lation or it has arrived at the con-
clusion that the elimination of
many of the units in the system
w d be a sound move.
TOWARD C. HOPSON'S resig-
II nation as an officer and di-
rector in all units of the Associated
Gas and Electric Co. might be con-
strued as a further indication of
the changed attitude of the COM
pany. 1t was limited that Mr.. Hop
sons health has been factor IN
this decision. Those who like to
look below the surface of things,
however, are not so sure that Mr..
Hopson's physical handicaps die
tated his action.
To large proportion of the pub
lie Mr.. Hopson will always be
identified with holding companies.
This same group of people, or at
least a good percentage of them,
look upon the holding company as
the cause of many unSavory prac-
tees in the public utility field. Con-
sequently, complete enforcement OF
Mr.. Hopson from the official family
Of the Associated Gas and Electric
Co. would go a long way toward
ending this association of name
and practice.
How we'll Wall Street liked the
news that the company was put
ting its house in order can be seen
from the fact that the six issues
listed on the New York Curb EX-
change climbed IL to 4 points IN
the first few days this week.