Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-02-10
TO TURN LIGHT ON
ALLEGED TOBACCO
and power TRUSTS

Washington, Feb. 9.-The Federal
Trade Commission was directed to-
day by the senate to investigate al
legged monopolies in the electrical
power and the tobacco industries.
and to inquire into the existence of
a national propaganda to discourage
public ownership of utilities.
A resolution by Senator Norris.
Republican. Nebraska, calling for
investigation Of the extent to which
the General Electric Company" or its
subsidiaries monopolize production
and distribution of electric energy,
was attached, by a vote OF 55 to %,
to the tobacco investigation of Sena-
tor Ernst, Republican, Kentucky,
after practically the entire days ses-
sion had been spent in debate.
The Ernst resolution, which pro-
vides for inquiry into reported agree
ments between the Imperial Tobac-
CO Company of Great Britain and
the American Tobacco Company, by
which. 1t was alleged, cooperative
organizations in the United States
were boycotted, and each concern
was given monopoly in it's own
country, was then adopted without
record vote.
The inquiry into propaganda
against public ownership of utilities
was directed in an amendment at
tached to the Norris resolution be-
fore it was adopted as a rider to
the Ernst proposal. It was advanced
by Senator Norris himself who, in
bringing forth his power investiga-
tlon proposal as an amendment to
the tobacco inquiry resolution, as
serted that he had decided upon this
course to obtain action because of
repeated failure to get consideration
for it in the routine manner.
Three Democrats and % Republi-
cans were recorded against the Nor
ris resolution. Many of these sena-
tors explained that their votes were
cast in the belief that ample au-
thority for the proposed investiga-
ton already rested in the federal
department and that it would entail
an unnecessary inconvenience on
business.
Those opposing included Senators
Bayard. Delaware: Dial, south Caro-
lima: and Edwards, New Jersey,
Democrats; Ball, Delaware, Bing-
ham, Connecticut: Bursum, New
Mexico: Butler, Massachusetts: Dale,
Vermont; Ernst, Kentucky; Fernald,
Maine: Hale. Maine: Keyes, New
Hampshire; Means. Colorado; Met
calf. Rhode Island: Moses, New
Hampshire; Oddie, Nevada; Phipps,
Colorado; Reed. Pennsylvania;
Smoot. Utah: Spencer, Missouri;
Wadsworth. New York: Warren. wy
oming: Watson. Indiana; Weller,
Maryland: and Willis, Ohio, Repub-
leans.
An amendment by Senator Harr,-
son. Democrat, Mississippi. which
would have extended the power in
quiry to the entire industry was de-
feated Sc to p and another by Sem
ator Watson, Republican. Indiana, to
eliminate a provision embracing in
dividual stockholders and security
owners within the scope of the in
vestigation. was rejected. 43 to 80.
The Norris resolution recited that
during the Muscle Shoals debate it
was alleged that "a corporation
known as the General Electric Com
PAM. either directly or through SUBJ
sidiary companies, has acquired a
monopoly and exercises control in
restraint of trade in violation of the
law" 1t not only directs the fed
eral trade commission to investigate
and report upon such charges but
requested the president, as a means
Of assisting in this inquiry, to have
all pertinent treasury records thrown
open to the commission.
The resolution of Senator Ernst
asserted that 1T has been stated
openly" that an agreement existed
between the American Tobacco Com
pany and it's principle foreign COM
petitors whereby each engaged to
respect the others buying market,
with the result that the Imperial To-
bacco Company enjoys "a practical
monopoly of certain types of tobacco
grown in Virginia, North Carolina,
and South Carolina, and a special in
terest in certain types grown in
Kentucky" while the American To-
bacco Company holds "a special in
terest in other types grown in tn, >
states" 1t also contained the char
ges that both companies were en-
gagged in the boycott, of tobacco
growers cooperative associations.