The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-06-04
PO7'er Lobby
SmartS Under
Inquiry SLabS
BIZ United Press

The joint committee Of national
utilities has been resting on it's lau-
rels since the power Investigation
was shunted from the Senate to
the Federal Trade Commission.
During recent weeks, while the
commissions inquiry has progressed,
the joint committee hasn't emitted
cheep.
,5t now the lobbyists are on the
defensive. The joint committee has
begun to issue what purports to be
a resume of the hearings before the
commission. You would gather from
THIS that the propagandists have
been engaged in a wholly praise
worthy effort at public uplift.
Another effort at fighting back is
made in a statement from P. H.
Gadsden, utility magnate of Phila-
delphia, and chairman of the ex-
ecutiye committee of the joint COM
mlttee. Gadsden, testimony has
shown, has been one of the lead
ers IN the effort to influence pub
lie thought and legislation.
Gadsden is much aggrieved. Some
OF the newspapers have drawn what
seem to him to be premature con-
clusions."
IL has been published, says he.
that propagandists employed by the
utilities have penetrated the educa-
tlonal systems of the country. "dis-
trlouting material unfairly praising
the services Of public utilities and
Improperly criticising and condemn
ing public ownership.
NEWSPAPERS have said that
L Y text books have been written
or rewritten by subsidized authors.
Gadsden complains.
These Characterization of tn,
activities of the representatives of
the utilities are unwarranted by the
evidence so far introduced and are
naslcally untrue" declares Gadsden.
Gadsden's statement does not
question the accuracy of Testimony
that the joint committee raised
100000 between June and Deem
Der of 1927 to combat the WalsI,
resolution, and Boulder Dam and
Muscle Shoals legislation. 1t does
not comment on testimony that the
National Electric Light Association
within year collected millions for
propaganda purposes.
What seems to hurt Gadsden
most is the accusations concerning
power propagandists' activities in
the schools in eighteen States. The
utilities, he says, have been willing
10 furnish instructive and informa-
tory booklets" containing facts
about which there can be little dis
pute.
LIE has attended several hear
4 4 ings, Gadsden says, but he does
not make it clear whether he read
the "catechisrn' which it was testi-
ned the utilities of Cinnecticut fur
nished seventy-six high schools, and
which is used as textbook.
This catechism asks the question:
What is the effect of adverse
criticism upon public utility serv-
ice?"
Here is the answer: q.
When people in any community
crltlclse adversely public utilities in
their city they are advertising Their
own city to outsiders as a poor place
TO live, and thereby are retarding
its growth"
The catechism has this to saw
about public operation:
TN every case in which a COM
munity has attempted to operate a
public service industry, which is
SUBJECT to great changes and de-
Velopments >. it is found that the
cost Of the service is higher than
ration" F0
The catechism did not refer To
Los Angeles, Seattle and other cit
les in which public plants are oDer-
ated successfully
NOR did Gadsden comment
1 Y on the testimony of J. s
5. Richardson, formerly employed
py Che utilities in his own
StaeA and now working for the
joint committee.
Richardson, while in /Pennsvl-
vania, reported: 1.-THE COMMITTEES
was directly instrumental in in
stalling public utility courses in the
University of Pennsylvania and
temple University. It aided ma
Ierlally in the recent completion of
q course on public utility economics
at State College"
Richardson explained to q curious
utility executive in Kansas that the
University of Pennsylvania course
had been put across in the usual
way" and that the "'groundWork
mad been laid with great care" to
make 1t appear that the suggestion
mad come from the faculty rather
IMAM from an outside source.
In Iowa, an assistant director in
surveying school texts found that
they suggested debates. Here was
a real opportunity.
If the text does not provide IN
formation favoring municipal own
ershlp, 1T leaves clear field for
the utility interests to provide
plenty of material favoring private
ownership" he found. He thought
it was "up to the utilities" to pro
vide plenty Of material to guide
students"
Joe Carmichael, chief publicity
man, explained, 1--WE have this
matter pretty we'll in hand, but do
not intend to let any of these bugs
slip anything over on us"
This same Carmichael rounded
up professors from four colleges in