The Government's Week

Last week the U. S. Government did the following for and to U. S. Business:

P: Relaxed its tax laws to a certain extent as Congress passed the Doughton-Vinson Tax Bill (see p. 11).

P: Improved its relations with the utility industry (see p. 52).

P: Sharpened its vigil against monopoly in the oil industry. A 1935 law stipulates that no one operator, individual or corporation may hold more than 2,560 acres of oil land in any one petroleum structure or 7,680 acres in any one State. Big companies have dominated more territory than this, however, through prospecting permits and operating contracts with prospectors. Last week Secretary of the Interior Ickes ruled that the companies must include such territory in their list of holdings and (he total must cleave to the law. Object: to keep down overproduction, give wider scope to the small independents.

P: Continued its slow legislative moves to help the hard-pressed railroads (carloadings last week were 30% under those of a year ago). Added to the list of proposed emergency laws was the first draft of a bill presented by Labor Executive George Harrison to allow railroads to reorganize without entering the courts under Section 77 of the Bankruptcy Act. This section, the roads' only present recourse when they go to the wall, is so phrased that not one of the 25 Class I roads to try it has succeeded in reorganizing because bondholders have been unable to agree with stockholders as to which will take the loss. Mr. Harrison proposes that upon application to a Federal district court certifying that it had reached an agreement with creditors representing 35% of its debts, a railroad could file a voluntary plan of reorganization to become effective when approved by the remaining creditors.

P: Considered licensing all companies doing interstate business. SEC proposed the idea to protect investors from a number of abuses it has unearthed in various corporate reorganizations and to counteract a general laxity of corporate law in certain States. Alternate proposal: use of taxing power to make more difficult incorporations under the statutes of these lax States.

P: Relaunched its stalled drive to establish minimum coal prices. Last December the Bituminous Coal Commission established a set of minima, but after coalmen brought suit, charging the Commission's methods were too dictatorial, these minima were shelved, B. C. C. Chairman Charles Franklin Hosford Jr. resigned and there was a general collapse of the coal price structure (TIME, Dec. 27, et seq.). Since then the Commission has wearily begun all over again, this time under the guidance of Percy Tetlow. Last week, with data for new minima almost complete and with Sunshine Anthracite Coal Co. of Arkansas filing the only suit now pending challenging the B. C. C.'s constitutionality, the Commission made grim-faced, 62-year-old Mr. Tetlow its official chairman. Coal miner's son, Percy Tetlow entered the mines himself at twelve, was a charter member of the United Mine Workers, began his career as a U. M. W. executive alongside William Green. When Percy Tetlow was fighting in the Argonne. his job was filled by none other than John L. Lewis. Now Miner Tetlow is Miner Lewis' right-hand man on the Coal Commission. Miner Tetlow's own right arm must do the work of two--.he lost his left in an auto accident.

This file is automatically generated by a robot program, so reader's discretion is required.