Page:United States Statutes at Large Volume 49 Part 1.djvu/849

 804 74TH CONGRESS. SESS. I. CH. 687 . AUGUST 26, 1935 . and other co ntracts involve t he allocation of charges among su b- sidiary public-utility companies in different States so as to present problems of regulation which cannot be dealt with effectively by the States ; (3) when control of subsidiary public-utility companies affects the accounting practices and rate, dividend, and other policies of such com panies so as to c omplicate and ob struct State regu lation of such companies, or when control of such companies is exerted th rough dis prop orti onate ly s mall inve stme nt ; (4) when the growth and extension of holding companies bears no relation to economy of management and operation or the integration and coordination of related operating properties ; or (5) when in a ny other respect th ere is la ck of econ omy of management and operation of public-utility companies or lack of efficiency and adequacy of service rendered by such companies, or lack of effective public regulation, or l ack of economies in the raising of capital. Ef fect when wide- (c) When abuses of the character above enumerated become per- spread. s istent and wide-spr ead the ho lding comp any becom es an agen cy w hich, unle ss reg ulate d, is injur ious to in vestor s, co nsume rs, a nd the Declaration of policy. general public ; and it is hereby declared to be the policy of this title, in accordance with which policy all the provisions of this title shall be interpreted, to meet the problems and eliminate the evils as enu- merated in this section, connected with public-utility holding com- panies which are engaged in interstate commerce or in activities simplification and whic h di rectl y af fect or burde n in ters tate comm erce elimination proposed. purpose of effectuating such policy to compel the simplification of publ ic-u tilit y ho ldin g-co mpany sys tems and the elim inat ion t here - from of properties detrimental to the proper functioning of such systems, and to provide as soon as practicable f or the eliminatio n of p ubli c-uti lity hol ding comp anie s ex cept as o ther wise expr essl y provided in this title. Definitions. DEFINITIONS SEC. 2 . (a) When used in this title, unless the context otherwise re uires- "Person ." 1 "Person " means an individual or company. Company. " 2) "Company " means a corporation, a partnership, an associa- tion, a joint-stock company, a business trust, or an organized group of persons, whether incorporated or not ; or any receiver, trustee, or other liquidati ng agent of any of the foregoing in his capacity a s such . "Electric utility com• pony . (3) "El ectric uti lity comp any" means any comp any which owns " or operates facilities used for the generation, transmission, or dis- tribution of electric energy for sale, other than sale to tenants or employees of the company operating such facilities for their own use and not for resale . The Commission, upon appli cation, s hall by or der declare a com pany operating a ny such facilitie s not to be an electric utility company if the Commission finds that (A) such company is primarily engaged in one or more businesses other than the b usiness o f an elect ric utilit y company, and by r eason of the small amoun t of electric en ergy sold by such company it is no t necessary in the public interest or for the protection of investors or consumers that such company be considered an electric utility company for the purposes of this title, or (B) such company is one operating within a single State, and substantially all of its outstanding sec urities are owne d directly or ind irectly by anothe r company to which such operating company sells or furnishes elec tric ener gy w hich it gener ates ; s uch other company uses and
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