Evening star., 1938-01-15

securities are widely distributed fal
into the holding company category
Some said surely the President had in
mind reservations which had not beer
made clear.
In brief Mr. Roosevelt told reporters
that he sought ultimately to wipe out
holding companies in all fields of busi-
ness and industry.
Asked whether he would eliminate
even first-degree holding companies
the Chief Executive responded with
the query-why have any at all?
AS used in the press conference
the term "first-degree holding COM
panies" presumably meant those
which hold securities only in operating
, companies.
Some Are Eliminated.
Elimination of some utility holding
companies already is provided for
in existing statutes. Besides discuss
ing these, the President referred
specifically to the control of local
banks by companies hundreds Of miles
away.
This remote control is gradually
eliminating the small banker. Mr..
Roosevelt said. He asserted this was
undesirable and that ample local
funds, deposit insurance and Federal
supervision make it possible for COM
munity banks to support themselves.
Along with astonishment, the reac-
ton of many business men included
the view that the statement had added
to uncertainty over future Govern
righteousness relations
Some observers said it might react
unfavorably on the better feeling en-
gendered by the conferences the Presl-
dent has been holding with industrial,
financial and labor leaders on Coop
Grafton with the Government in COM
batting the recession.
Shortly after the press conference
Mr.. Roosevelt met with another of
these business-labor groups.
Those present were John L. Lewis,
chairman of the Committee for Indus
trial Organizations: Owen D. Young,
chairman of the General Electric Co !;
Thomas w. Lamont, partner in the
banking house of j. P. Morgan: Philip
Murray. chairman of c. I. O.'s
Steel Workers Organizing Committee;
Charles w. Taussig, president of the
American Molasses Co.. and A. A.
Berle of New York, former administra-
/. tion adviser
Exactly what they discussed with
the President. Mr.. Lewis, who acted
as spokesman for the group, would
not disclose. However. he indicated
they would have further White House
meetings. saying the discussions will
be continued at the Presidents discre-
ton"
Speculation on Conference.
The group, he said, was Impressed
with the desirability, if at all possible.
Of working out with the President and
the administration a definite program
Of action by the Government. business
and labor"
There was speculation that Mr.
Lewis had arranged the conference
with the help of Myron Taylor, chair
man of the board of United States
Steel-when 1t was learned he con-
ferred Thursday in New York with
those who accompanied him to the
White House.
The previous day. Mr.. Lewis had a
long conference with Mr.. Taylor al
the latter's New York home.
Similar n many ways to yesterdays
conference was one the President helt
Tuesday with Alfred P. Sloan, chair.
man of the board of General Motors
Corp. and others.
This meeting was arranged by an.
other labor leader. George M. Har.
rison, president of the Association oI
Railway Labor Executives and tnflu.
ential in the American Federation ol
Labor. Mr.. Harrison, like Mr.. Lewis
, went to New York for preliminary dis.
cussions with the future White Hous.
conferees. whom he met at the Unior
League Club.
Norris Hits Wall Street.
Senator Norris asserted, in his dis
eussion of holding companies. tina
their elimination would eliminate tn
necessity for Wall Street, except in s.
far as 1t is necessary to meet the loca
i. needs Of New York"
Wall Street bankers, he said, hav
for years been draining away tn
profits of the local banks and busines
enterprises they control.
The only purpose of these holdin,
e1Dapanies Is to make illegitimat.
pqS21t1." he said.