Evening star., 1939-02-10
0d|um Urges Signal
From Roosevelt on
Utility Policy
Huge Spending Program
Could Be Released,
Finoncier Says
B, the Associated Press.

By the Associated Press
NEW YORK, Feb. 10.-Floyd B.
Odlum said yesterday definite as
surance from President Roosevelt
that the administration would not
take any step to discourage investors
from putting their money into util-
ity securities would at once launch
heavy industry spending program
''in excess of 1,000000000 year"
Odlum, financier and president of
Atlas Corp. $1OO,000000 investing
company, said all recent gestures OF
the administration towards utilities
problems had been Favorable" and
that only the final official 60 ahead
signal was necessary.
Such a program he said in an in
tervieW, would broadly stimulate an
era of better business already lin
the cards" according to all dis
cernible symptoms.
Sees Favorable Trend.
Odlum cited, as favorable develop
ments of the recent past:
/. The Tennessee Valley Author
ity-Wendell L. Willkie settlement.
with its implied acknowledgement
OF equity or common stock value
2. The Federal Power Commits
sion's urgent efforts to push the
administration-ut utilities national de-
fenSe program, which some leaders
in both groups have predicted, once
launched, would stimulate utilities
expansion.
3. The reported determination of
Harry l.. Hopkins, new Secretary of
Commerce, to start the utilities 60
ing"
4. The Securities and Exchange
Commissions apparent determina-
ton to help the utilities"
Explaining the last point, Odlum
said the S. E. C. had repeatedly in
recent months shown in one way or
another desire to be "co-opera-
tive"
Its attitude toward such integra-
ton and financing problems in the
utility field as have thus far come
before it for approval was specific
ally cited.
Plan Before S. E. c.
In this connection, Odlum said
that while the S. E. c. had not spe-
officially approved Atlas Corps new
plan for the reorganization of
Utilities Power & Light Corp, now
the subject of section "77B" bank
ruptcy proceedings, it had not dis
approved the plan made public two
days ago.
This plan, he said, contained one
phase of great interest to all utility
holding systems affected by the So
called death sentence clause of
the Public Utility Holding Company
Act of 1885.
Holding company officials gener-
ally, he said, who have been whole
heartedly desirous of complying with
the act, have still not been able to
see. in many cases, how their COM
panieS could sell control blocs of
common stock in the recent condi- |
ton of the equity common stock
markets.
The new Atlas plan, however,
proposed that U. P. & L. will divest
itself of more than per cent COM
mon stock control of any power
company-thus becoming an in
vestment company under the act,
instead of a holding company
by exchange of securities for other
securities.
Allows for Delay.
Although the exchanged securi-
ties might make U. P & L. again a
holding company" by virtue Of
owning more than per cent of
voting stock of other companies, it
would be recognized legally. the plan
proposes, that this was but an in
termediate" stage, and that the top
company would dispose of the newly
acquired stock as soon as it could
''prudently" do so.
Such a plan, Odlum predicted, if
officially sanctioned, would allay
great part of existing apprehensions.
These securities, temporarily held
during the intermediate" stage of
integration reorganization, would
then be disposed of to the public
as equity" markets open up, he
said.
A word from the top that the
administration and it's agencies
would interpose no new barrier to
such opening up would prove the
extinction of the last red light to
utility expansion, he said.