Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-30

Activity Of power companies in New
York State and Names vote to forbid
exporting of power rank as sufficiently
important to be subjects of debate in
other parts of the country. Varying
opinions are expressed AS to the effect
of recent moves by the Niagara-Hudson
Power Co., under the leadership of the
house of Morgan, which has acquired
rights from the Mellon interests. Ac-
ton in Maine is viewed merely as an
example of public expression, some
questioning its benefits to the State.
Discussing the New York situation,
the metropolitan Journal of Commerce
states that while Legislatures wrangle
or hesitate and Congress investigates
without acting, the process of monopo-
lization" of the power resources of the
United States advances through the
extension of holding company opera
tions" That paper asserts that "the
advantages of private control are likely
to be lost to all but the stockholders
and interested insiders" should concen-
tration proceed without the correctives
of adequate regulation and searching
supervision by State and Federal gov
ernments."
Investigators are quoted by the Chicago
Daily News as pointing Ito the remark
~
combine or to consolidate their interests,
the relative inefhciency and weakness of
State utility commissions, the claim OF
interstate holding companies that the
State commissions have no jurisdiction
over them, and the bizarre financing
and accounting methods of some Of the
big companies. Further" continues the
Daily News, 1.-The cry has been raised
that the power interests are seeking to
control education and prevent gradual
| Improvement of the methods whereby
the States regulate and control their
rates and services. All these aspects OF
the power situation challenge the atten-
| ton of responsible and constructive
statesmen. Such men, though opposed
| to oyerlegislation or wanton bureau
cratic meddling with legitimate bust
ness, feel that the settled policy of rea-
Sonable regulation of natural monopo-
lies requires restudy and modification
by reason of recent striking develop
ments in the public utility field"
1.-THE last Legislature in New York, y
says the Baltimore Sun, created an
excellent commission to investigate pub
] lie utility regulation, and from 1t light
on the subject is expected. The fact
| that William j. Donovan, formerly AS
sistant Attorney General of the United
States, has been selected as counsel Is
| taken to assure a thorough and Scien-
! tine study of the matter. But events
| have been moving so rapidly since the
| commission was established that it ap-
pears that before the inquiry gets under
way the entire electric industry Of the
State will have come under control of a
few big holding companies. This. OF
course, magrifies the problem before the
commission"
| THAT the power interests of the
country have grown almost like magic
| in recent years" thinks the Topeka
Daily Capital, "is certainly fortunate
| for everybody, but as unregulateo
monopolies they are in an anomalous
position. Yet States cannot regulate
them, according to legal decisions; the
| Federal Government does not regulate
them, and regulation falls between the
| two stools. The problem of regulation
calls for the best talent of the country.
The st. Paul Pioneer Press asserts that
'"the division between public and pri.
yate function should be at the point
where generation leaves off and distri.
button begins. There is a dispute,
/ adds that paper, whether the st. Law.
renee power on the American side be-
longs to the Federal Government OF
New York State. However that may be
decided, there can or should be no diff
ference on the proposition That II pe'
longs to the public"
Some modification of the critical atti-
tude as to power In New York has fol-
lowed a statement by Thomas W. La.
mont. REPRESENTING the Morgan interests