Evening star., 1927-11-16
WALSH GIVES PLAN
|. OF UTILITY INQUIRY
Financing and Merger Activ-
itives to Be Basis of
Probe, Senator Holds.
BY DAVID LAWRENCE.

The financing of holding companies
| and the merger operations of public
| utility corporations will he the princi-
pal ground covered by the proposed
investigation of the public uulltN IN
dustry. This WAS emphasized TO-DAY by
Senator Walsh. Democrat, of Mon
tana, in an interview with the writer
on the scope of the inquiry which the
Senate is 20 he asked to make
"The Federal Trade commission.
he said. has narrowed the field some
what by giving facts on the so-caIled
power trust, but the material de-
Ncloped there will afford us basis
for inQuninG into what has happened
m he strictly financial side oi the
Industry.
Millions Made in Securities.
q am reliably advised th;t many
millions have been made III the tiola-
l!un nf securities. The inNc>t.@ .@tttiout
may develop lh;,t Lhis Wu@ legitimate
Ii made. But. on the other hand, II 1t
was. then Why isn't the public being
.uen the benefit of lower rates Tor
chit and bower? Either the proper
ties were bought at sums that make
it necessary for the present rate sched-
ules to be maintained at a cost to the
consumer that should come down, or
else the investor has been asked to
blly securities which by reason of the
high prices paid for the properties
VIII not mean the payment OF early
dividends 1t is our task to bring these
.acts to light for the protection OF the
public. The various State commissions
will be much interested, | am sure, IN
what is brought out"
lis it your purpose to recommend
Federal regulation?" he was asked
NO. [ haven't any such idea in
mind nor am l pointing toward Gov
ernment ownership. l cannot say
what recommendations will be made,
and | am not even sure that we can
correct some of these abuses by leGls-
lation. but | am anxious that the
country shall have the facts, on which
interested groups can base thelr ac-
ton before State commissions or else
where
1t is suggested that the public
utility industry Welcomes an inVeSu-
cation, Dut not Il political inVestlga-
ton" remarked the writer.
Sure Rcsoirtio ion Will Pass.
"Wen," replied the Montana Senator
With a smile, "although 1t is not fact
of any Importance, you might be IN
tcrc&to1 to know that a very promi-
nenL Republican was the first to suS-
gest this inquiry to me, and L nave
had visits from various persons IN
tereSted i'll the investment OF securl-
ties for institutions who have told me
it was very important that the truth
be disclosed. You may remember
when the Teapot Dome investigation
started some people called it 'poiiti'
cal
II am not comparing this inquiry
with the Teapot Dome affair, for there
has been no contact with the GoNetn-
ment ln--the utility business and the
two things are entirely different. but
whenever any effort is made to get
at the facts, some of those who op-
pose it invariably think the motive
must be political.
we are going to invite students OF
the pubic utility field, engineers.
financitrs and all who can throw hight
on the subject to testify"
The Senator said he felt sure there
were enough votes to pass the reSo!u-
ton without referring it 10 a regular
committee. lie predicted that the
resolution would be pressed for pas
ge immediately on the opening OF
Congress next month.
lCouvriSht 1927