The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-08-09


The O'Nahoney plan, backed by
the American Federation of Labor,
proposes Federal Incorporation and
licensing of all corporations engaged
in commerce between the states.
1t would, according to the senator,
solve the holding company problem,
not only in utilities but in all bust
nesses, by giving to the stockhold-
ers of companies which are
strangled in the holding company
net the voting power to control their
own capital"
Might Switch Fight
Utilities have enlisted the support
of other industries in their fight
against the Wheeler Rayburn bill by
arguing that it's principles would be
later extended to include all bust
nesses. If this threat becomes i'm
minent, some industries that have
been fighting the Wheeler-Rayburn
measure might decide to switch and
support it as a better alternative
than the O'Mahoney plan, it was
suggested. Opponents, however, con-
tended that the effect might be just
the reverse.
A subcommittee of the Senate In
terstate and Foreign Comerce Com
mittee will study the O'Mahoney bill
during Congress fall recess. If the
Wheeler Rayburn bill is left in con-
ference at adjournment, this broader
measure, with specific provisions for
utilities, may be substituted for it
next winter.
The Federal Trade Commission,
after it's long study of utilities hold
ing company finance, suggested
Federal incorporation and licensing
as one of three alternative methods
of dealing with the problem.
Increase Is Proposed
The O'Mahoney bill proposes to
increase the Trade Commission
membership to nine, consisting Of
three labor men, three industrialists
and three representatives Of the
public.
The commission would be author
lied to summon national indus
trial conference as the first step in
working out program for the sta
bilization and orderly development
of basic industries, lin order to
bring about a more equitable dis
tribution of the earnings of COM
merce to those who are employed
and to those who invest their capital
therein"
The bill proposes that all licenses
granted protect the right of collec-
tive bargaining, and ban child labor
and discrimination against women.
1t purovides that all stock shall
have equal voting power, and pro-
tects minority stockholders by pro-
viding that their proxies may be
voted only by men accredited by the
Trade Commission and not con-
nected with the corporations in
question.
Directors Are Liable
Bonuses are forbidden except by
vote of stockholders, and directors
are made liable for damages to
stockholders if they obtain "uncon-
scionable profits" from manipulation
of corporation funds.
Another section provides for dis
tribution of SURPRISES to stockhold-
ers under certain conditions, and
prof1t-sharing for employees under
others.
OMahoney says of the measure;
ut would mean a real distribution
of the wealth of the country, not in
the sense of destroying or distribut-
ing capital assets, but by providing
for more equitable distribution of
the national income. Because it
would do that it would stimulate
business
Federal incorporation has been
advocated at intervals since 1904.
Incorporation or licensing or both
have been endorsed by James r.
Garfield while commissioner of
corporations, William H. Taft while
President of the United States,
Woodrow Wilson while President,
former Atty. Gen. Wickersham, and
aF fho Cono q