Evening star., 1938-01-17
LEADERS ARE COOL
T0UT|L|TY BUYING
Congress N embers Give
Only Scant Support to
|. WiIIkie's PROPOSAL.
By the Associated Press. !.


|. WiIIkie's Proposal.
~ the Associated Press.
A proposal that the Government
buy out the largest private utility
group in the Tennessee Valley received
scant support today from the drst
members of Congress to discuss It,,
Wendell L. W1llkie had suggested
that "as . last resort in . desperate
situation" the Government purchase
power companies in that area which
are subsidiaries Of the Commonwealth
& Southern Corp. Mr.. Willkie Is
president Of the latter company.
Representative Rankin, Democrat,
of Mississippi, leader of tho public
power bloc in the House, was more
favorably inclined toward the idea
than other legislators who commented.
He expressed willingness for such .
purchase II the price was not based
on inflated values"
Chairman May, Democrat, Of Ken
lucky. Of the House Military Commit
tee. however, opposed purchase at
any price" rs the beginning Of State
socialism" Senator King. Democrat,
of Utah, objected to the Government
buying any power plant.
High Price Cited.
Senator Norris. Independent, Of Me-
braska, father OF the Tennessee VAL
ley Authority. said the Government
should make purchases only to avoid
duplicating transmission lines or other
equipment Of private companies, but
added:
"The utilities have made this difli-
cult by asking 4 price that nobody
could afford to pay"
Mr.. Willkie said his proposal was =
reply to President Roosevelt's sugges-
tion that the utilities sell their dis
tribution to cities in the area.
Because the cities would not want
to buy the power plants and less
profitable rural lines, he said. "the
generation and Transmission lines not
purchased by the city will be reduced
to the value Of junk"
Delay In Action Seen.
Meanwhile, one administration ad-
wiser expressed doubt that the Presi-
dent would seek abolition Of all busi-
ness holding companies at this ses-
sion Of Congress. Mr.. Roosevelt said
at press conference last week that
holding companies ought to be dis
banded.
Some administration supporters in
Congress said they thought holding
companies should be abolished by law
only in the banking and insurance
fields.
They said the present utilities hold
ing company act. which provides that
not more than two holding companies
should overlay any group Of utility
operating companies, should be tried
for another year or two before further
action is considered in the power
business.
President Roosevelt arranged to dis
cuss recovery this week with the Busi-
ness Advisory Council, and informed
officials said additional talks with
leaders of business. labor. farming and
the consuming public may follow.
Mr.. Roosevelt has invited the Sc
business men who compose the busi-
ness council to meet at the White
House Wednesday afternoon. before
their regular session At the Commerce
Department.
The White House gathering, Secre-
tary Roper said, will be q round ia BILE
discussion, such as Mr. Roosevelt has
held recently with steel. railroad and
manufacturing executives and others.
While Mr.. Roper would say only that
he hoped the discussion would produce
definite line of cooperation" be-
tween Government and business. other
omcials suggested the possibility of
naming . council committee to sit
down with labor and other represen-
tatives for discussion of the major
problems Of recovery and business
stabilization.
Reported Other Subjects.
This would not be the first time
the council had gathered facts for
presentation to the President. Formed
in June. 1888, at the instance of Sec
retary Roper to advise the admins
tration on business problems, 1t has
reported to Mr.. Roosevelt on subjects
ranging from neutrality and wage
hour legislation to unemployment and
taxation.
Few Of its reports have been made
public, but they were said in many
instances to have had considerable
bearing on administration policies.
Mr.. Roper recently said that a coun-
ell committees recommendations on
the undistributed profits tax followed
the lines along which Congress is
now moving"
The council, selected to represent
many types of industry and both big
and small businesses in all sections
OF the country. includes many Re-
publicans and others in fundamental
disagreement with administration