Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-01-29
BIG BUSINESS MEN
FACE j. S. INQUIRY
Four Federal Divisions Con-
cerned by Report Of U. S.
Forest Service.
A MONOPOLY IN WATER
POWER BUSINESS CHARGED
Directors of Great Corporations,
Banks and Trust Companies
Said to Be Involved.

Directors of some OF the big
gest public service corporations
of the country. especially those
connected with electric light, in
terstate electric railway and cleo
trio power companies, as well as
banks and trust companies, are
facing investigation by the fed
eral trade commission, the inter
state commerce commission and
the federal reserve board, as well
as the Department of Justice.
1t is said that according to the re-
port recently sent to the Senate by the
Secretary of Agriculture, which de-
clares there is monopoly in water
powers in the United States, there is
the possibility of prosecution of direc-
tors and corporations under the Sher-
man act for combinations in restraint
of trade and under the Clayton act
which forbids interlocking directorates
The report charges that many of the
combinations which have been made
among the great companies and finan-
after the passage Of the Clayton act
approved October Is. 1914. some provi-
sions of which are retroactive.
TO Act on Own Initiative.
Information as to the possibility of
such investigations was obtained to-
day, following an inquiry at the Of
fees of the federal trade commission,
as to the manner in which the report
sent to the Senate. which was made
by the forest service of the Depart
ment of Agriculture. will reach the
commission or be looked into by that
body.
AS a result Of this inquiry it is under
stood that--the federal trade commission
will take cognizance on its own response
tility of the report as soon as 1t is pub
lished If 1t is found that directors OF
electric light or power companies. or the
big corporations as such, have laid them
selves anenable To the provisions of the
Clayton act. they will be summoned by
the federal trade commission, granted
hearings and told to desist from practices
contrary to the law. The federal trade
commission files its own complaints, and
does not wait for complaints to be pre-
serited to it. Under the Clayton act it is
specifically charged with enforcing the
provisions Of that act which do not affect
common carriers or banks and trust COM
panies. The interstate commerce COM
mission is charged with enforcing pro-
visions of the act which affect the inter-
state street and interurban railways
common carriers-and the federal reserve
board is charged with enforcing provisions
Of the act which affect banks and trust
companies.
Report Is to Be Printed.
The Senate committee on printing. of
which Senator Duncan U. Fletcher of
| Florida is chairman, met yesterday and
decided to recommend to Congress that
the report be published as public doc
ument. Only brief extracts of it have
so far been published. 1t will cost $21,-
! 900 to print the report, which is volum-
inous, and which carries many plates
and diagrams. but in view of the mill
| lions of dollars involved, the conserva-
tion legislation as to water powers be-
fore Congress, veto, it is believed by
the Senate committee that the expense
Of $4,000 is more than justifiable.
The forest service is being besieged
by hundreds of persons ali over the
United States-lawyers, bankers, pub
lie service corporation officials and
others-who have heard of the report
and who want copies of it. ito find out
where they are at as one man ex-
pressed it today.
The report says that the total in
vestment in commercial central stations
furnishing electric power. as represent
ed by the latest figures. was over
| 81, 1000. 100000. Other interesting items
| in the report are:
Evidence of Capitalization.
"The concentration in control of cleo
trio power is evidenced both by the
increase in the, amount held by public
service corporations as class and in
the amounts which are held by certain
corporations in particular"
IF inquiry is made into the control
by certain corporations it is found that
eight-five public service corporations,
through ownership of properties, ma
jority ownership of stock, lease or di-
rect management. control 68 per cent
of the total public service power in the
United States"
THE character of control, which is
considered with reference to the above
figures is definite and complete 1t
consists either of actual ownership of
properties, of majority ownership of
stock, of lease or of direct manage
ment."
AS to common directors, the report
says:
.:The extent of control cannot be
Oua ntitatiyely determined except in