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- Title
DESIRABLE LEGAL CHANGES IN FOLDING COMPANY LEGISLATION.
- Authors
Dillavou, E. R.
- Abstract
The last two decades have witnessed an enormous increase in the use of the holding company as a device for financing and welding together hitherto independent units of business operation, as of March 1933. In no field of business endeavor has the growth of holding companies been so pronounced as in the field of public utilities. The motives prompting its use have often been of questionable character. Financial history is replete with instances in which the purpose apparently has been to achieve individual objectives at the expense of the balance of society. Even a superficial study of the economic losses resulting from holding company collapses raises a serious question as to their social desirability. Some students of business insist that the holding company is a by-product of a period of stable price levels when increased outputs with declining costs were the order of the day. They insist that during trying times disintegration will take place and that the successful business of the immediate future will be the small business unit which has shaken itself free from expenses entailed by heavy overheads and idle plants found in the larger organizations.
- Subjects
UNITED States; HOLDING companies; CARTELS; INDUSTRIAL policy; PORTFOLIO management (Investments); PUBLIC utilities; MUNICIPAL franchises; PRICE levels; FINANCE
- Publication
Accounting Review, 1933, Vol 8, Issue 1, p43
- ISSN
0001-4826
- Publication type
Article