Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-02
DEMOCRATS STUDY
MERGERS AS ISSUE
Power Industry Slowly Work
ing Way With Realm of
National Politics.
BY DAVID LAWRENCE.

Power mergers are slowly working
their way into the realm of politics.
with the Democrats examining the
issue infinitely to determine how they
can make it nationwide either in the
congressional or presidential elections
Of the future.
Gov. Roosevelt, Democrat, though in
clined to believe that the recent merger
in New York State was within the let
ter of the law, is endeaVoring to f1nd,
nevertheless, by further legal inquiry,
some weakness in the set-up. An
opinion from Republican attorney
general at Albany has upheld the
legality of the merger. But still Mr.
Roosevelt. knowing the solicitude of his
party colleagues on the power issue,
will not drop it till he looks into 1t
further.
Attitude of Party Here.
And that is precisely the attitude of
the Democrats in Washington, particu-
larly those of the progressive" school
The Federal Trade Commission inquiry.
which has been in session for mora
than a year, bids fair to continue for
two or three years more. Court suits
and injunctions may temporarily stay
its hand, but inevitably the investiga-
ton proceeds.
The Electric Bond and Share won
the first round in court by being given
a verdict in favor of withholding its
books till the Trade Commission could
be specific as to its requests for data,
but the commission still has the power
to put witnesses under oath and inter-
rogate them as to their personal knowl-
edge. The inquiry will be resumed in
the Autumn.
The Trade Commission has upset the
calculations of both sides in the power
fight Originally the power companies
fought against Senate inquiry be-
cause they feared Senator Walsh OF
Montana, Democrat, and his associates
would emphasize isolated pieces of in
formation and would not conduct a
scientific and judicial inquiry. 1nsur-
gent Republican Senators, on the other
hand, thought the Trade Commission
had been leaning too strongly to the
side Of big business and would flnG
some way to whitewash the power COM
panies.
View Has Changed.
Now, after the inquiry has gone
through several stages it Is the anti
power group in the Senate who are
singing the praises of the Trade Com
mission, while the power companies arc
somewhat saddened by the fact that
they are constantly on the defensive
and made to appear from day to day
as huge combines and trusts OF evil
design.
Curiously enough, while the power
companies have been under attack an
other prediction which they themselves
made has not been fulfilled. They
feared that an inquiry would lose them
public confidence and that their securi-
ties would be adversely affected, and
particularly their borrowing power. In
stead, utility stocks have gyrated and
mergers have not ceased but have in
creased in number and size. The talk
Is of bigger and better mergers.
All this is leading some observers to
the belief that the disinterested views
expressed by neutral Senators at the
outset are being verified, namely, that
II an industry is under suspicion OF any
kind it is wholesome to have a thor
ough investigation for the benefit Of
all concerned, and the public is an
impartial judge of the value and sig.
nificance of the revelations.
(Copyright, 1929