Evening star., 1938-11-16
7, D. c., WEDNESDAY, NOVEMBER 16, 193
United Corporation
To Eliminate Self as
5uper-Ho|ding Firm
S. (. G. Told Of PIuns to
Reduce Investments
Below 1919 Limit
T. the Associated Press,

A~oV AOAS4A, 4NOt. Az" l4C IA COLL
of the Morgan-Bonbright banking
interests of creating United Corp.
as super-holding company to con-
troll their vast investments in public
utility systems-conceived back in
the flush days of 1929-has been
dissolved.
In a letter signed by George H.
Howard, its president, United Corp.
late yesterday notified the Securities
and Exchange Commission it would
eliminate itself as a holding COM
pany as defined by the 1885 death
sentence legislation by reducing its
investments in four large utility
operating systems to below the 10 per
cent limit which the legislation labels
as evidence of control.
These four systems and Uniteds
investment in their voting securities
are: Columbia Gas & Electric Corp,
1876 per cent; Niagara Hudson Pow
er Corp, 23.4 per cent; Public Serv-
ice Corp. of New Jersey, 1879 per cent;
and United Gas & Improvement Co.,
26.l per cent.
Stays in Investment Field.
Mr.. Howard said United Corp.
would continue as an investment
company and would participate in
the financing and underwriting of
capital issues in the public utility
and other fields.
In Its transformation into an in
misunderstanding company, Mr..
Howard said United would diversity
It's portfolio of investments as rap
idly as practicable "and we believe
that under favorable market condi-
tions it will be possible by sales, ex-
changes or otherwise to reduce the
corporations holdings of public util-
lty voting securities to below 10 per
cent OF those of any one company"
United has much smaller invest
ments In othe utility companies, in
cluding per cent holdings in voting
securities of Commonwealth g.
Southern, and per cent in Consol-
idated Edison of New York, but
these do not come within the scope
OF the public utility holding COM
pany' act of 1885.
United was incorporated in 1929
and 1t has outstanding approx
mately 2,4800OO shares of So pre-
ferred stock, and 14,5OO,OO0 shares of
common stock, out of original auth
orlzations Of 100000 and $4,000, 900,
respectively. The corporation has
maintained it was not holding
company in that it did not have
legal control over the companies
in which it owned stocks. and did
not have any contractual relation
ships with any of these companies
to furnish engineering. financing or
other services, as is common to the
holding company set-up.
The 1885 legislation, however,
established 10 per cent ownership
as prima facie evidence of control
of subsidiary, and United complied
with certain provisions of the act
and registered with the S. E. C..
after these provisions were upheld
by the Supreme Court a few months
ago in the Electric Bond &. Share
litigation.
Shows Plan of Intergration.
Mr.. Howard's letter was in con-
nection with the S. E. C's request
for utility holding companies to
submit their plans for the intergra-
ton, geographically and corporately,
by December /, pursuant to section
II, the so-called death sentence, :"
of the 1885 act.
Mr.. Howard said the section II
problems of the four companies in
yolved will be more easily solved
because of the plan of United Corp
to diversity its present holdings"
He pointed out. however, that
Public Service of New Jersey was
completely integrated in that State;
that Niagara Hudson Power was
completely integrated in New York
State; that the major portions of
United Gas improvement are al
ready integrated in contiguous ter
ritories in Eastern Pennsylvania and
Delaware. and that Columbia Gas
& Electric appears likewise to have
substantial integration of operating
territory in Ohio, the western parts
OF Pennsylvania and West Virginia