The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-11-29
Washington
Merry-Go-
Round
NOV. %, 1885
BY DREW PEARSON and
ROBERT s. ALLEN.

hObEhf -. ALLEN.
NTASHINGTON. Nov. 29.-Inside
w advisers admit that Roose-
velt's smooth-running neutrality
policy struck a definite snag when
the British postponed an embargo
on oil. And the insiders are wor-
ried about it.
Privately they know that the
neutrality policy is not neutral at
all, but throws the full weight of
the United States against Italy ard
with the League of Nations.
In fact, the United States invari-
ably has been one step ahead of the
League, and has had to wait for it
to catch up. The policy received
wide acclaim as long as the League
always caught up, but in the case of
oil it hasn't.
What is not generally known is
that all of these moves have been
discussed in great detail between
the State Department and the Brit
iSh.
The IckeS- Hull declaration
against the sale of oil to Italy was
no exception. The British wanted
to know from us. in advance, what
we would do if they embargoed oil.
They didn't want to be in the posi-
ton of diverting Italian purchases
TO the United States.
Mr.. Hull showed his good faith,
and now finds himself dangling
| awkwardly from a limb, with some
embarrassing questions sure to be
asked when Congress convenes.
THE Saturday midnight deadline
L for registration of holding
companies finds the government
and the S15,0O0,000 900 power indus
try locked in one of the fiercest
struggles in the history of utility
| regulation.
The outcome of the titanic battle
not only will determine the fate of
the Holding Company Act, but will
have far-reaching political and
! economic reverberations.
| II the government wins. many OF
the most powerful utility moguls in
the country will lose their corpora
ton scalpS. If it loses, the utility
issue Is certain to be a major battle
cry In next years campaign, and
the movement to curb judicial pow
ers will receive tremendous impetus.
THE behind-the-scenes strategy
Il of the two combatants is now
clearly defined.
The aim Of the utilities is to over
whelm the government with a tidal
wave of legal actions.
Their object is twofold: First. to
wear down the government by con-
Stantly hammering on hundred
different fronts: second, to enrage
government leaders into committing
a provocative act which can be
seized by the utilities in order to
sway public opinion
This program is behind the Balti-
more suit and other tests to which
the government is not a party. It
Undeflles the secret reversal of policy
within the Industry not to file any
registrations.
THE governments strategy is a
Il combination of offensive-de-
| fensive tactics.
For the time being, the govern
ment is giving the utilities free rein
to force the fighting 1t is adopting
a peaceful and reassuring attitude.
| This is behind the conciliatory
statement of SEC Chairman Jim
Lands and the order of Atty. Gen.
Cummings to refrain from bring
ing criminal proceedings" against
recalcitrant utilities.
Cummings and Lands had two
| ideas in mind: First. to put the onus
OF aggression on the utilities, let the
idea sink home with the public that
the utilities are resisting regulation,
defying the government; second. to
maneuver the utilities into making
the same mistake into which thev
are trying to jockey the government
an overt act which would swing
public opinion against them.
That some of the Infatuated util-
ity barons are capable of such a
blunder is shown by the lets gang
the government" statement of Ed
ward F. Hutton. This free-tonguing
brought jubilant smiles to the lips of
New Dealers. It was a stroke of
luck and they are planning to make
much use of it.
Meanwhile government LAWYERS
are preparing a sensational legal
counter attack.
For weeks hand picked group Of
the best legal talent of the Justice
Department. SEC, Federal Power
Commission, Interior Department
and RFC have been burning the
midnight oil preparing briefs, argu-
mentS and assembling precedents.
When finally they open fire. soma
real surprises are in store for the op-
position.
Copyright. 1885, by United Feature
Syndicate. Inc.l