The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1929-08-30


rud, attorney in Washington for
the Flathead tribe of Indians
whose valuable power sites in
western Montana are almost with
in the grasp of the Electric Bond
& Share Co., holding company for
the General Electric end of the
power trust, is out of step with
the administration. Grorud is dis
satisfied. He does not appreciate
the blessings of universal merger
ization. Instead, he asks what
are the Indians going to get when
the Federal Power Commission
gives their power sites to the
trust 2"
Looking gloomily over the stu
alton, Grorud has found and clip
ped from Commerce and Finance
this warning note, entitled "Hild-
ing Hands in the Powerhouse."
"We have for months called at
tention to the splendid investment
and speculative possibilities of the
electric light and power stocks.
They have more than justified our
belief in them. But many seem to
have gone far beyond any posi-
bility of being justified by the OPP
Grating earnings in the next ten
years.
present earnings and book
values are due largely to profits
arising from the purchase anC
sale of one another's stocks. In,
terlacing ownerships have gone tt
such an extent that no matter
which public service you buy yoU
are pretty sure to buy an interes
in all of them. Each compan!
owns the other and the investmen
trusts owns them all. This has 81
reduced the volume of share
available for transactions in tn
market that sensational advance
are easily brought about. There j
no question of the future prospect
ty of the electrical industry, bu
serious thought should be given t
the investment propriety of thes
petting parties in the powerhoust
H. L. Horton Co."
What the Federated Press ha
for the past month, especial!
been calling to the attention Z
the working-class press of TIL
continent is summed up in tn
broker statement-that there is
power trust, and that one of tn
chief sources of its recent enrich
ment of its chief magnates is II
sale of inflated stocks which can
not earn high dividends on the
present watered valuations.
No wonder the Electric Bond
Share Co., which drew that my
FERROUS check for $359,O00 of i
boss, Sidney z. Mitchell, when Il
Walsh resolution for investigate
of power trust finance became no
has been unwilling TO give Il
Flathead Indians a decent prit
for the electric current to be d.
veloped on their reservation. Mi
chell and the other big boys nee
the money. How else can the SIC
900 fees of an Irvine Lenroot
paid, or the Joint Committee
National Utility Associations
financed in luxurious hotel suit,
in the national capital? And, Vi
less the Flathead Indians a.
ready to sacrifice their hope of
few dollars of regular income fro
their power site, how can the Gel
eral Electric crowd employ ba
terry of big lawyers to face Il
Federal Trade Commission and Il
federal courts refusing to explat
the $4,000 check and the rest
the hocus-pocus accounts on the
books? If men like this Grorr
are to be permitted to go on wit
their complaints, the whole stru
ture of public confidence in pow'
trust finance may be weakene
and the released water may drov
the Market.
But the power trust is feelin
slightly less worried than a wee
ago, when the legal opinion
Charles Russell, new solicitor
the Federal Power Commissio
struck at its padded claims of ''il
vestment account" in the securir
of federal power leases. Frar
Bonner, the new executive seer
tary of the Commission, is baC
from California with loud cries
disgust at Russell's action. AS
power trust puppet, Bonner SHOW
a startling dirgeard for the usu
pose of being unbiased in his pu
lie position. His indignation tn
someone should have suggest,
that the Russell Interpretation
the law will save the public a De
manent burden of $5O0,000,OOO
watered capitalization is rockies
Other men who have spoken as a
IDENTIFY as he in defense of pow
company claims have been on II
eve of taking power company sa
aries and leaving the federal Sc
vice. Bonner's going over to Il
trust would occasion no surpris
Possibly his going will be hurrit
by friends of public ownershi
who are tired of power trust
government.
WASHINGTON -Par1 Clam ave-.