Evening star., 1935-03-12
ROOSEVELT ASKS
HOLDING COMPANY
BAN BY CONGRESS
Special Message Calls for
Passage of Measure
Limiting Device.
BILL WOULD PERMIT
SOME FIRMS TO SURVIVE
President Also Strikes Back at
Propaganda" Designed to
Defeat Legislation.
The tert of the Presidents
meSsage-Page A.
BY J. RUSSELL YOUNG.

o1 4oSANos
President Roosevelt in a special
message to Congress today supported
the administration so-called public
utility holding company bill and de-
nounced holding companies as whole
as a device which does not belong to
American traditions of law and busi-
ness.
He also struck back at propaganda"
against the legislation.
The President described holding
companies as a corporate invention
which can give a few corporate in
siders unwarranted and intolerable
powers over other peoples money. He
said they have destroyed local control,
thereby creating in the public utilities
field what he described as a system
of private socialism and which he said
was inimicable to the intent of a free
people.
Mr.. Roosevelt declared the time
has come to make an effort to re-
verse the process OF concentrated
power.
Would Permit Some Firms.
The President made 1t plain that
while he is opposed to any form of
holding companies, he is willing that
those companies which can prove
that their existence is necessary for
the public ends which private utility
companies are supposed to serve,
should be offered a chance of sur
vival. But the survivors. in his
opinion. must be subjected to plan
of public regulation and control
which Is sound.
Therefore, the President is resolute
that, except where it is absolutely
necessary to the continued function
ing Of geographically intregrated
system of operated utility, the utility
holding company with its present pow
er of an empire must go.
Mr.. Roosevelt showed his Intense
feeling in this respect by saying in
his message, IF we could make our
financial history In the light OF ex-
perience, certainly We would have none
Of this holding company business"
He then reminded Congress that this
power trust device offers what he
termed too-well demonstrated temp
tation for abuse, and therefore, should
not be tolerated as recognized busi-
ness institution.
The Presidents message accom-
panied report to Congress submitted
to him by the National Power Policy
Committee, created last Summer from
the Government departments con-
cerned with power problems to make a
series Of reports to coordinate Gov
ernment policy on such problems. Mr.
Roosevelt took occasion to remind
Congress that this report deserves the
careful attention Of every member of
Congress.
In his message, the President called
public attention to the fight being
waged against the administration
holding company legislation. He
stated that he has watched the use
OF investors money to make the in
vestor believe that the efforts of Gov
ernment to protect him are actually
designed to defraud him. He then
called attention to the extent of the
propaganda being circulated against
tl1Ao ACS SIoldtiOAl'
Answers Propaganda
In answer to this propaganda, the
President declared he has seen enough
to be as unimpressed by it as he was
by the similar effort to stir up the
country against the securities eX-
change bill last Spring. MIR. Roose-
welt said the securities exchange act
is now generally accepted as con-
structive measure, and that he feels
confident that any fears now enter
tained in regard to any public utility
holding company legislation will prove
as groundless as those last Spring in
the case of the securities exchange act.
In answer to the so-called propa-
gandiStS, the President said that the
public utility holding company bill
will not destroy legitimate business or
wholesome and productive investment
and will not reduce actual values.