Evening star., 1935-07-03

South Carolina, which must approve
the appropriation.
Garner to Name Pr0bers.
The special committee would be
appointed by Vice President Garner.
1t would be directed to make a full
and complete investigation of the lob
bying activities in connection with the
so-called holding company BILL"
The House Rules Committee plans
to open its inquiry next Monday un-
der authority Of resolution approved
by the House yesterday.
The Black resolution had the sup
port of both Republicans and Demo-
Gratis in the committee.
Senator Hastings, Republican, Of
Delaware. who was absent, sent a
letter to Senator White, Republican.
OF Maine, saying he had no objections
to such an inquiry provided it is
brought about to include an investi-
cation as to what the administration
has done in an effort to put its pro-
gram across"
The lobby investigation was touched
off by an accusation by Representa-
tive Brewster, who said Thomas Cor
coran. Reconstruction Finance Corp.
attorney and an author of the utilities
bill, threatened to halt the Passama-
quoddy project if Brewster voted
against the death sentence"
Representative Moran, Democrat, of
Maine, who said he communicated
with Corcoran Immediately after
Brewster made his charge, said, how
ever, the r. F. c. employe told him all
he had ever said to Brewster on the
subject was that "if he felt as he did
about the death sentence, then he
could not be trusted to proceed with
the Quoddy legal work"
Moran explained that Brewster had
been designated by Corcoran to han
die certain legal aspects of the project -
Corcoran was said by Moran to have
made his statement to Brewster "sev-
eral days ago at meeting at the r.
F. c." which was one of series that
members of the Maine delegation have
6AC2o WAt14 So1 wi GIL OIl4 AIl6 tAlC lcSG lew
weeks on the Passamoquoddy project
and the utilities bill.
The inquiry Is expected to provide
some hot clashes. Critics of the brain
trust"-of which Corcoran is gener-
ally listed as a member-and of ad-
ministration methods in pressing its
losing fight in the House for compul-
sorry abolition of unnecessary" hold
ing companies, plan to take the field
with vigor.
Foes Prepare for Hearing.
Foes Of the holding companies also
are preparing for the hearing. Sen
ator Wheeler said the inquiry would
disclose "massed drive" by utility
concerns to blackjack" employees and
investors into sending protests against
the death sentence" to Congress.
On the other hand, Philip H. Gads-
den, chairman of a committee OF
utility executives, said the companies
fight was perfectly clean, open and
above board'
He said the companies were exer-
cising their constitutional rights
in seeking to protect our property
when it Is in jeopardy
The compromise talk arose after the
House turned down again yesterday
President Roosevelt's demand for the
death sentence and passed milder
utilities regulation bill, 323 to 81.
Healy Proposals Recalled.
House rejection of the drastic death
sentence" in favor Of giving the Sc
curities and Exchange Commission
discretion in dissolution of holding
companies recalled suggestions along
that line by Robert E. Healy. member
of the commission, early In the House
hearings on the bill last Winter.
Healy, who as a former member Of
the Trade Commission was key fig
ure in the Long investigation into the
power industry, suggested modification
OF the original death sentence" Sec
ton to give the s. E. G. latitude In
breaking down top units where the
holding company could demonstrate
its downfall would work substantial
injury to investors and Is really against
the public interest"
In addition, he pointed out, the
courts would have the right to review
the commissions findings.
He said his proposed changes would
not transform the measure into q mere
regulatory bill, but would move utility
combines to simplify their capital
structures and work toward the ideal
Of economically and geographically
integrated units.