Evening star., 1935-03-14
Testimony of Wendell WiIlkie
Opens Fight Against Hold.
ing Company Control.
END OF "DEFAMATORY
STATEMENTS" ASKED
House Committee Told Govern.
ment Is to Blame for Present
Securities Conditions.
By the Associs ted Press.

By the Associated Press.
Wendell L. Willkie, president of the
Commonwealth g. Southern Corp, told
the House Interstate Commerce Com
mittee today that largely as a result
of the Government campaign against
public utilities. the value of utility
securities has declined by $500 900. 900
since January l. 1888"
This assertion opened the testimony
Of opponents to the Wheeler-Rayburn
measure to abolish holding companies
in five years.
. President Roosevelt has urged legis-
lation to abolish those unable TO show
they are operated in the public interest
Willkie appealed for an end to the
lash of "defamatory statements"
from Washington land a chance 10
unleash our organizations for con-
structive purposes"
Plight Laid to Government.
He blamed the Government for the
present plight of the companies, say
ing Government officials deliberately
sought to build up favorable
press despite facts to the contrary
and predicted punishment would &C
meted out to him for his statements
He said enactment of the pending
legislation will not only cause fur
ther enormous loss to the American
family, but will represent the great
est backward step in the history OF
power development"
Complaining that utilities companies
were not given chance to pass upon
or know about the innuendoes. in
situations and Misrepresentation
contained in the press releases and
statements of conclusion by which the
attempt is being made to create a 4,
favorable press for the passage oil
the pending bill and to prejudice our
cause in advance of its presentation.
the official said Federal Trade Com
mission official investigating his COM
pany's New York Office congratulated
its business operation. but when asked
why he did not include that in his
report. replied:
"Oh. Mr.. Willkie, would be severely
criticized if l put anything in my re-
port favorable to a utility holding
company"
Propaganda Probe Blocked.
Meanwhile. an objection by Repre-
sentative Taber, Republican. of New
York. blocked immediate conSidera-
ton of the Senate resolution for
Federal Trade Commission investiga-
tion Of propaganda" against the
utilities control bill.
The objection was to passage by
unanimous consent. The resolution
will be brought up later.
Chairman Rayhurn of the Interstate
Commerce Committee told newspaper
men he did not know Just when his
committee would consider the meas
ure. but he expected the resolution to
be put through eventually. Rayburn
had asked unanimous consent for
adoption.
Only comparatively few members
were on the floor. but doubts were ex-
pressed from both Democratic and
Republican sides as to the need for
such action. Minority Leader Smell
said he thought it ought to be con-
sidered first by the committee.
Representative Eankin and others
were as outSpoken, however, in favor
of its adoption
Finally. after Representative Cooper.
Republican, of Ohio, persistent COM
mittee critic of outright abolition, had
complained that Rayburn had not
mentioned the resolution to him,
Taber jumped up, shaking his fsts.
and shouted:
IF this House can't determine
whether it wants this bill without
throwing up smoke screen, then it's
in sorry pass. l object"
Methods Are Revamped.
Willkie said DR.. Walter NJ. w.
Splain. a member of the Interstate
Commerce Commission who made an
extensive study of utility holding
companies. praised his company's
method of doing business. but in tes-
tifying before the committee makes
the inference that when he learned
that your committee was going to
make an investigation, We got what
Judge Healy calls religion and re-
vamped our methods of doing busi-
ness He referred to Robert e.
Healy member of the Securities and
Exchange Commission.
The utilities executive quoted a let
ter he said was written by President
Roosevelt from Warm Springs. Ga,
5, 1926. to Thomas w. Mar
tin of the Alabama Power Co., in part,
as follows:
Il am writing this to you in order
to obtain information. AS you have
probably read in the papers. I have
recently taken over the old resort
known as Warm Springs. and I hope
that soon there will be an extensive
development.
I'VE. in this and the neighboring
are suffering from the
usual high cost and inefficient service
Of small local power plants"
Franklin D. Roosevelt named it."
Wilkie said. referring to what he
termed the commendable beneficial de-
velopment holding companies brought.
President Roosevelt has said utility
holding companies have been spread
ing propaganda" against enactment
Of legislation.