Evening star., 1935-03-13
Senate Passes Norris Reso-
luton for Probe by Trade
Commission.
MAGNATES HIT BACK
AT ROOSEVELT CHARGE
Hot Battle RACES as Regulatory
Measure Draws Fire of
Companies.
By the Associated Press.

~ eAS nHoOSiotC0
The Senate today ordered a Federal
Trade Commission investigation of
propaganda circulated on legislation
to regulate public utility holding COM
panies.
The inquiry was proposed in a reso-
luton by Senator Norris, Republican,
Of Nebraska and approved without
debate.
President Roosevelt struck out at
such propaganda in his message to
Congress yesterday urging enactment
Of holding company regulatory legisla-
tion.
Norris proposal directed the Trade
Commission to investigate and report
on the "origin. purpose, methods and
expense" of such propaganda
Meanwhile the fight over public
utility holding companies became one
of the hottest raging in Washington
as utility executives struck back today
at President Roosevelts charges of
propaganda"
One spokesman said the admin
iStration "disregards the pleas of the
people" Another saw a strain of
malice" in the message in which the
President urged yesterday that con-
troll Of utility operations be taken
away from "a few corporate insiders"
by ultimately abolishing all except
necessary holding companies in this
field.
Mr. Roosevelt had said that "far-
fetched and fallacious fears" about
the effect of pending holding company
legislation are being spread.
To this. Philip H. Gadsden. chair
man Of the Committee of Public
Utility Executives, replied:
The utilities have endeavored
honestly to inform investors and the
general public as to the disastrous
effects of this legislation.
VIII Continue Fight. -
I'VE shall continue to urge them to
express their opinion frankly and
fully"
Gadsen added that the destruction
of the holding company, as provided
in the proposed Wheeler-Rayburn
utility bill, is no longer a concern for
the public utilities alone, but for all
industry"
The Presidents message was ac-
claimed. meanwhile. by several Demo-
cratic leaders in Congress.
In move supporting Mr.. Roose-
velt's statements. Senator Byrnes.
Democrat of South Carolina, put into
the record letter bearing the name
Of the Associated Gas & Electric Co.
1t asked security holders and employees
to write their Congressman in protest
against the legislation.
Brain Trust AssaiIed.
One of the most strongly worded
protests against the Presidents mes
sage came from Hugh S. Magill. presi-
dent of the American Federation of
Utility Investors. He said it seemed
to indicate "a state of mind that
listens to the brain trusters, but cody
dtregards the pleas of the people in
the exercise of their constitutional
right to petition their own Govern
ment for a redress Of grievance"
In his message Mr.. Roosevelt as
serted that destruction of private
socialism" built up by holding COM
panies was utterly essential to avoid
governmental socialism"
Regulation has small chance of
ultimate success against the kind of
concentrated wealth and power which
holding companies have shown the
ability to acquire in the utility field,
he added.
c. o. G. Miller, president of the
Pacific Lighting Corp, replied:
That is great reflection upon the
rate-making bodies of the several
States and is untrue"
1T is lamentable that all through
his message there is a strain of mall
Ice" Miller said, "and it is also la
mentsble that the President should
object to citizens protesting against
the confiscation of their property.
Disputes Claims.
He states in this message that the
measure will not destroy legitimate
business or wholesome and productive
investments, and still he proceeds to
advocate such destruction"
Utility spokesmen took sharp ex-
ception to the Presidents contention
that the proposed holding company
legislation would not destroy "a penny
of actual value" of the properties rep
resented by holding company securi-
ties.