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The New Deal and Recovery, Part 13: Fear Itself (Continued)


New Deal hampered recovery by causing businessmen to fear policy changes that might render their investments unprofitable.)
Insull s Monstrosity
The 1935 Revenue Act wasn t the only measure that had businessmen and investors shuddering that August. Less than a week after it became law, FDR signed the still-more controversial Public Utility Holding Company Act, granting the SEC the power to break up the nation s utility holding companies.
On the eve of the Depression, Paul Mahoney explains, most U.S. electric and gas companies were directly controlled by trusts or holding companies. Groups of smaller utility holding companies were in turn controlled by a smaller number of larger holding companies, and so on for several layers. Three gigantic holding companies at the apex of this holding company pyramid ultimately controlled more than 80 percent of the nation s power companies. ....

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Wall Street Crime And Punishment: Samuel Insull, A Utility Mogul Unplugged And 'Citizen Kane' Inspiration


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Samuel Insull is mostly forgotten today by the general public, but from the 1890s through the 1930s he was one of the most prominent figures in the U.S. economy. Indeed, Insull was such a notable personality that Orson Welles borrowed a chapter from his life and fashioned it into a segment of the landmark film “Citizen Kane.”
At the peak of his power, Insull’s fortune totaled roughly $100 million. But by the time of his death, he had only $1,000 to his name  which had been sullied during the wreckage created by the Great Depression.
Shining in Edison’s Glow: Insull was born in London in 1859, the son of a tradesman who focused his Sunday energies on being a Congregationalist lay preacher. Insull’s education was patchy and by the age of 14, he began a series of clerking jobs in London-based offices, including a stint as a stenographer for the publication Vanity Fair. ....

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