Evening star., 1935-12-26
Sc. C.FA|LS T0FK
AATELOBBY RULES
Registered Holding Com
panies Are at Disad-
vantage Under Act.
BY DAVID LAWRENCE.

Within a week Congress will be
assembling, and the law says there
must be no lobbying by registered
holding companies.
The Securities and Exchange Com
mission is supposed to issue rules
governing lobbyists, but it hasn't done
so. There are very few companies
that have registered, so Congress may
be relatively immune from the sup
posed intrigues of the lobbyists OF
those companies. AS for the un-
registered group, they are fighting the
act in the courts. But just why the
rules governing lobbyists have not
been proclaimed by the Securities and
Exchange Commission is a good deal
Of a mystery.
The public utility act of 1885 is
rather specific in its mandate calling
upon the commission to set up rules
and regulations. There is no discre-
ton in the matter-the commission
is supposed to issue the rules because,
In the absence of rules, it might be
assumed that nobody representing a
registered holding company would
dare to talk to a congressman or even
visit the Securities and Exchange
Commission itself.
Provision Is Specific.
Here is the paragraph in the law
which evidently is not being admin
istered:
at shall be unlawful for any person
employed or retained by any registered
holding company, or any subsidiary
company thereof, to present, advocate
or oppose any matter affecting any
registered holding company, or any
subsidiary company thereof, before the
Congress or any member or committee
thereof. or before the commission or
Federal Power Commission, or any
member, officer, or employe OF either
such commission, unless such person
shall file with the commission in such
form and detail and at such time as
necessary or appropriate in the public
interest or for the protection of in
Vestors or consumers, statement OF
the subject matter in respect of which
such person is retained or employed,
tainer or employment and the amount
OF compensation received or to be re-
ceived by such person, directly or
indirectly, in connection Herewith"
Registered Companies Hit.
Now it is apparent that the regis
tered holding company which has con-
formed to the S. E. G request for
registration and has, therefore, really
played ball with the New Deal is in
much worse position than the company
which has resisted the act in the courts
and has refused to register.
For the registered holding company
representative. literally speaking can
not even confer with the Securities
and Exchange Commission without
really violating the law and certainly
cannot approach member Of Con-
gress on "any matter affecting any
registered holding company" whether
It is taxation or labor relations or any,
thing else The unregistered holding
companies, which are by far the more
numerous group, can send represent
atives to Washington and lobby all
they like. They can hardly be pun
ished, for the law applies only to reg
istered holding companies.
Discrimination Minimized.
This most unfortunate discrimina-
ton against the friends Of the New
Deal is not likely to be maintained very
long; in fact, the lobbying provision
has probably become dead letter for
the time being because while the pub
Lie utility holding company act Is be-
ing adjudicated in the courts it is not
probable that any steps will be taken
by Government agencies to enforce
the statute as written.
Those who have been solicitous for
the welfare of the Congressman, who
are supposed to need protection against
lobbyists, will be disappointed by the
failure of the S. E. C. to come forth
with rules and regulations governing
lobbyists. The rules might, of course,
be written in the next few days, but it
Is beginning to look as II members Of
the House and Senate will simply have
10 get along without the lobbying rules
and deal with the persuasive lobbyists
In some other way-posibly by stufing
their ears. For it is incomprehensible
that men elected to Congress need a
law to protect them against the writ
ten or spoken words Of American citi-
Eens who presumably have a right Of
petition under the Federal Constitu-
ton.
-. Copyright, 1935.)