New Britain herald., 1925-02-11
TIE GENERAL ELECTRIC
 AND THE SENATE

| thc alleged agreement between tho American Tobacco company and tho Imperial Tobacco company of Great Britain indicates the slogan of some years back -- less govern- mcut in business was in the na- ture of false alarm.
 Tho General Electric company is suspected of having undue influence and control over public utilities and | power companies; in short all this talk about "supcr-power" we have been hearing has to do considerably with power combines. according to the allegations. Three old guard senators, Watson of Indiana, Reed of Pennsylvania and Fcss ot Ohio, fought vaianty in an effort to take the teeth from the Senate rcsolu- ton, which will allow the eNamna- ton of stockholders in the General Electric and the Westinghouse com panics, The big stockholders are said to be virtually the same in both companies.
 The resolution aimed at the American Tobacco company springs from complaints that cooperative producers of tobacco are threatened by the supposed agreement between the American and British tobacco trusts. Before the alleged agree ment was formed the British to- bacco interests would purchase to- bacco from American producers which the American concern refused to buy at the price offered; but it IS easy to guess that with an agree ment existing between the two leading tobacco buying concerns of the world that there will be lack of competition between them in the buying market, resulting virtually in a dictated price to producers of the weed. Connecticut tobacco raisers undoubtedly would be ad- versely affected by such an agree ment.
 Senator Norris of Nebraska, one of those insurgents tread out of the party" as the author of the General Electric resolution adopted by the Senate, was able to win out despite the opposition of the administration forces, which particularly opposed the clause in the resolution giving to the Federal Trade Commission authority 10 investigate the affairs of the stockholders of the electric companies.
 Whether anything substantial
 
 will result from such investigations is in the future. The plan to examine stockholders of the General Flee tric. 1t is stated, does not imply an examination of every individual stockholder but applies to those owning a substantial quantity of shares. The Department of Justice had already begun an Investigation of the General Electric, but from the comments of senators, there IS very little confidence in an inyestl- gation by this department
 The General Electric company unouesuonably has been one of our most far-sighted. and energetic ln- dustrial concerns. The electric busl- ness of the country lies between II and the Westinghouse company TO start a vitriolic investigation Of these concerns without good cause would be folly.
 The effect upon the vaIne Of stocks in the two companies cannot be anything but depressing at least temporarily, but when it IS reaiizeu that several concerns have breasted such investigations" and have con- tinued to steer along the lanes oI prosperity despite prosecutions 1t Is anparent that the senatorial inVes- tieation won't mean the end of such industrial supremacy
 The electrical business by its na- ture requires large accumulauons oi canitaI Thsre appears to be ma +ural law that makes for the coih- hination of such large concerns The government, and the senate still holds to the view that com binations of capital arc in restraint of trade, at the same time setting ID regulatory machinery that is de- signed to prevent consumers from paving unreasonable charges
 Several decades ago it was the railroads that were continually barassed for attempts at. consoIlda- ton - after most of the consolida- tions as we have them today had been perfected. The government failed to unscramble the eggs, To- day we have advanced to the point where the Interstate Commerce Commission is trying to be god father to numerous consultations and the rates are so regulated that the only existing competition ap- plies to service.
 II may be that the same road !"