Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-12-25
POWER FIGHT TO BECOME
BIG NOISE In CONGRESS
Present Sessions Work Includes Pro
posed Inquiry and Important
Legislative Changes.

II has also sFSwn that some IL.
stances exist Of most amazing COZ
centrated control Of great propertieg
by the investors Of a relatively TIM
amount Of money. II has found srG
stated. for instance. that the distiJ-
guished and highly able firm Of III. 81.
Byallesby & 20. zig able, with az
investment of Jess than 81 900 900 10
exercise the voting control over NOR.
than 1870, 900. 900 Of operating capital"
That is one main phase Of the
inquiry proposed by Senator Walsh
Senator Walsh wishes TO investigate
and to disclose to public view til"
merits and the dangers, whicheTer
and wherever they may be, OF tn
financing and Of the investment struc-
ture IT the American electric power
business.
This phase. however. would NO
seem 10 be ultimately so importar.
as the phase which would succeed f.
IN the course Of Senator Walsf1s bro
posed explora tons. This second phasa
would have to do with the efficiency
or ineficiency--0r total Iack-of locet
state regulation If public utfIit,
finances and Of public utility rates q
the consuming public.
On this point a large weight liz a
tached to opinions recently express4,.
ny the Federal Power C,ornroissinr
which consists Of Secretary 81 VI,
DAVIS Secretary Of the interior
work and Secretary N Agric1IItrr.
Jardine.
Must Know Costs.
The Federal Power Commission Las
remarked that IL Is impossible TO fl.
Inc base for the rates TO be charged
10 the consuming public by electric
power companies unless there is On
accurate knowledge Of the actual cos-
10 the power compa MES OF their plant
and equipment: and il has then mad
the two following seriously importar-
observations:
There is a tendency on the part ~
some power companies 20 put ever
item possible into the capital account
as part Of the rate base whsther
representing actual costs or not
And
There can be public protection IL
this respect only II the States max
provisions. as they have not yet done.
for inspection Of construction and fOl-
current audit Of construction &C
counts"
That is. according to the Federa,
Power Commission. the State author
ties have in general failed TO perform
the duty which lies at the very. bot
tom OF all finally competent public
utility regulation.
II would Ire the ultimate aim ot tht
Walsh inquiry 10 reveal such frailtiss
as there may be in local State regula
ton Of public utilities and TO producs
suggestions whereby those frai!r-e~
can be cured.
Many Leaders I'm Harmony.
II i believed here now that mar.
outsta nding personalities in the power
industry are in total harmony with
the idea OF a progressive and cor
Structive scrutiny OF public utility al
fairs. II is noted that the industry's
most conspicuous figure, Mr.. Owen d.
| Young OF the General Electric Co
which is I manufacturing company.
has thoroughly divorced that company
from all really largely important par
ticipation in the nanag enlent OF oper-
ating power companies, so that III.
| Federal Trade Commission has b%S.l
able 10 state:
AT the present time the Genera
| Electric Co. cannot be said 20 own 8
| ma jority interest in any poweE
| group"
II is further noted that the Federa
Trade Commission has also stated;
Nothing approaching control haS
| been acquired by any single in,erssT
| over the electric power industry
| II is thought that the Joint Con-
| mittse OF National Utility ASSocsSi-
| tons in now accepting the idea o. ::
full inquiry by compstently eQuirpsc
| Federal body is confident that Their
| will be no disclosure and proof OF any
unified electrical trust"
II IS noted that the Joint commit
tee includes representatives OF alu2ost
all OF the so-called holding company
power groups. loosely and vaguely
called trusts" such as Stone ana
Webster. Hodenpyl- Hardy and Co. thss
North American Co. cue Middle Yves,
Utilities Co. incorporated by the In
sull interests. III. NJ. BylleSby s Co.
the Electric Bond and Share 90. an
Henry l.. Dohsrly & CO.
The sum OF the situation wCU-I
seem 20 he 2s follows.
The electric power companies ~ IL
| United States. having been Speceacv
.ariy successful! III selling ;heir S;ccS>
and bonds 10 the general InDSu;nlT-,
public and having gone farther thai
any other industry In the whole wprl,j
toward what has been called '-thS
psoplei=ation % corporate securities
are now turning toward getting frs
clearing up 81 their relations VII
the regulating authorities o. the n
ton. local and Federal.