The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-11-18
POWER LOBBYISTS
BUSY TO PREVENT
PROBE OF TRUST
Seek Whitewashing by
Federal Commission
By LAWRENCE TODD (Fed. Press

WASHINGTON, Nov. 17.-That the
power lobby headed by Josiah T. New
comb and his Joint Committee of Ma
tional Utility Associations, Boosting
an investment of $17000,0 100000, is
contemplating a new trick to escape
investigation by special committee
to be elected by the Senate, has been
reported to The Federated Press from
an authoritative source.
Not only does Newcomb's lobby
seek to avoid investigation by Sen.
Thos. j. Walsh's proposed special
committee, but it is desperately de-
termined that the Senate committee
shall not pry into the secrets of the
holding companies in the power indus
try, nor examine the books of power
companies to learn the actual cost of
producing and distributing electricity.
This inquiry into costs might result
in sensational disclosures that would
affect the charges permitted by pub
! lie utility commissions in the states,
and might give powerful impetus to
the demand for public ownership and
operation of giant power system
across the continent.
"Whitewash Trust"
The trick, it appears, is to consist
of bland proposal that any inquiry
be handled by the Federal Trade Com
mission, which last spring issued the
first section of report on Control of
Power Companies in response to the
Norris resolution of 1926. This re-
port was rambling, confusing and
sprinkled with references to the views
Of power magnates on their own in
terests. 1t concluded with white
wash statement that there is no power
trust.
Sen. Walsh has just made decla-
ration that he will re-introduee his
resolution of inquiry on the first day
of the new session. He also says that
the power crowd will try to sidetrack
it, but he will fight any attempt to
evade a vote on his demand for di-
rect investigation by committee to
be elected by the Senate itself. Walsh
does not propose that Vice-President
Dawes, whose family is in the power
combine, shall name the members of
this committee.
His suspicion of Dawes is equalled
Commission, since that body is now
stacked by President Coolidge as
privilege agency. Commissioners
Nugent and Thompson-the last two
liberals-are gone, and Commissioner
Humphrey, former corporation lobby
list, dominates the policy.
! Slated for Congress.
The second section of the Commits
sion's report under the Norris reso-
luton, which will deal with the Sup
ply of electric power machinery and
equipment, and on competitive condi-
tions in the entire power field" has
been completed by the staff and is
now being reviewed by the Commits
sion.
1t will probably go to Congress in
December, and will presumably seek
to prove that there is no private COM
bine embracing the Westinghouse and
General Electric equipment concerns,
nor any power trust reaching from the
Atlantic to the Pacific.
| One section of the Norris resolution
| the Commissioner majority vote
with Nugent and Thompson dissent
ing-referred to a eomplaisant at
torney general, who ruled it illegal.
That was the demand that it probe
the power lobby.
Stock Watering.
"The Commission shall also ascer-
tain," ran the resolution, "and report
what, if any, effort has been made
by the said General Electric Company
or other corporations, companies, or
CARNATIONS, or associations, or any
one in its behalf, or in behalf of any
trade organization of which it is a
member, through the expenditure of
money or through the control of the
avenues of publicity, to influence or
control public opinion on the question
of municipal or public ownership of
the means by which power is develop
ed and electric energy is generated
and distributed"
Walsh is ready to ask that this in
quiry be made by his proposed special
committee, along with the probe into
holding companies, mergers, stock
watering and extortionate prices for
electricity.