MUST BE ELIMINATED

Evening Post, Volume CCXV, Issue 13, 17 January 1938, Page 9

MUST BE ELIMINATED

HOLDING COMPANIES

MR. ROOSEVELT'S M

CORPORATION'S DESPERATE

OFFER

WASHINGTON, .Januafol 15.

President Roosevelt declared at a Press >oonf erence that all holding companies must toe eliminated ii:om the nation's economic structure, 'whether they are in control of .publto ■utilities, iibankmg, or other businesses.

In response io this statement, Mr. Wendell Wilkie, president, of the ■billion-dollar Commonwealth and Southern Corporation, offerejd to break up the vast Jiolding company by selling the entire south-east'em utility properties to the Government. "I make the suggestion as a last jresort in a desperate situation," he saifd.

Mr. Wilkie added that his action followed competition by til e Tennessee Valley Authority and tile Government's declared intention of breaking ■UP all holding companies. He asserted that President RooseveTtSs suggestion that utilities should be- . sold to the municipalities was impossible, since the cites' wholesale sujpply of electricity was obtainable :fjrom the Tennessee Valley Authority}.

He was of the opinion that his offer to the Government ■was the only chance to protect 200;00i|) investors and 13,000 employees. He proposed that the price should be fixed eMher by negotiation or Tjy three arbdttators selected one each by President; Roosevelt, the Supreme Court, and ijie corporation.