Atlas for RFC

A man could count on all his fingers and toes only one-fourth of all the holding and operating companies which Promoter Harley Lyman Clarke put under the control of Utilities Power & Light Corp. of Chicago. Serving 550 communities in the U. S., 488 in England and Wales. 31 in Canada, Utilities Power & Light is, however, not the apex of Promoter Clarke's classic pyramid. Its control rests in a small issue of voting stock held by a super holding company called Public Utilities Securities Corp. which in turn is controlled by a super-super holding company. Grand Potentate of them all, called Webster Securities Corp.

Three years ago shares representing control of Public Utilities Securities Corp. were pledged for a $2,000,000 loan from the old Dawes bank in Chicago. Eventually they turned up in the portfolio of Reconstruction Finance Corp. as part of the collateral for the famed $90,000,000 Dawes loan. To protect his investment RFChairman Jesse Jones last March ousted five directors of Public Utilities Securities Corp. including Promoter Clarke, replaced them with his own men. For a few terrifying months it looked to utilitarians as if the Government were going to turn the $300,000,000 power system into a yardstick and run it as it pleased.

Last week all utilitarians breathed easier when Jesse Jones and his directors stepped out of Public Utilities Securities and Floyd Odium of Atlas Corp. stepped in. Alert Investment Truster Odium had bought Utilities Power & Light debentures at bargain prices, watched them double in value. Since no holder of utility securities wants to have the Government as a partner, Mr. Odium was glad to ease RFC out last week by trading some of his Utilities Power & Light debentures for the securities held by Jesse Jones, thus giving Atlas Corp. working control of the system. Mr. Jones was also pleased because Utilities Power & Light bonds are at present paying interest, whereas his holdings were in default. Last week Mr. Odium declared that Atlas Corp. did not intend to manage Utilities Power & Light, that its move was purely a "temporary investment."

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