The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1929-04-26
SIIMM
Sincerely yours,
CLIFFORD PINCHOT.


The question whether there is an
electric monopoly or whether there is
not will doubtless occupy steadily
increasing share of public attention
during the present year.
And if there is an electric monop-
oily, is it organized and financed to
give fair rates to consumers and fair
profits to the power people? Or does
it live to gouge the public?
A pamphlet which answers these
questions has just been issued by
Clifford Pinchot. 1t shows that out of
4,362 power corporations in the U. S.
on June 80, 1927, only 50 were en-
tirely independent. A little more
than three quarters of the 4,196 oper-
ating power companies, or 3,108, were
controlled by Al great holding COM
panies.
These Al holding companies con-
trolled more than four fifth $500
of all electric power generated in the
United States and nearly seven
eighths 1880 of all our people de-
pended upon them for electric ener-
gy. More do now.
This is concentration with a ven
gence but it is not the whole story.
If we group the Al power giants ac-
cording to the dominating financial
interests on their boards of directors
we find that 8 of the Al power giants
are under the control of the General
Electric interests, under control of
the insult interests, under Morgan,
2 under Mellon, 1 under Byllesby and
1 rlndar noho,rtxy oOptr0l
Six interests control % of the Al
power giants. But that is not all
Twelve more are under the joint con
troll of two or more of the six inter.
ests. That leaves only 6 of the Al
power giants which are not yet known
to be controlled by the six great pow,
er combinations.
In 1926 these six interests already
controlled 63.46% of the electricity
produced in America, and had at their
mercy $3.50 of the population
little less than two thirds of the en-
tire country's electric power, and a
little more than two-thirds of the
people. They control much more to-
day.
Such domination is almost incredible
but there is more to come. For the
General Electric, insult, Morgan, Mel
Ion, Byllesby, Deherty group is for
all practical purposes united into a
single siX-sided power monopoly. 1t is
united through the Joint Committee
of public utilities, through the pow
er lobby which infests Washington,
and through common interest in
many ways.
The central power-group, the Big
Six, is in effect a single interest with
a single purpose, which is to continue
TO extort almost unimaginable profits
from the masses who pay for electric
current.
A study of the 35 big power cor
porations controlled by the Big Six
indicates that out of total assets of
eight billion dollars, not less than
three billion represent capital infla-
uon-water-upon which the 7%
earnings usually allowed by public
service commissions would authorize
extortlonate rates to the tune of $780,
100000 a year.
Two hundred million dollars a year
of earnings" on pure water is such
gigantic loot that no wonder the pow
er monopoly stops at nothing to keen
1t. The actual figures are probably
larger by far but they cannot be I'M
covered except by a public tribunal
such as the federal trade commission.
or a senate or house investigation.
Inc people who control the vast
ana growing power monopoly are not
SatlS1led with mere extortion. In adj
dltlon they have succeeded in creating
a system through which thew are
able to dictate what stocks and bondc
may be put on the market and what
may not. Thus they decide what Sc
curltles the public is permitted to buv
and what it is forbidden to buv. In
TINS way they use the public's own
money to finance new companies con-
trolled by the monopoly which in turn
exact additional swollen profits from
the public. ~ --0'i
inns scheme is worked through the
control of the central banking prom
which is the central power group. ov,
er investment syndicates and invas+-
ment brokers. Unless the latter seIl
to their customers what l. offa SCI
70 them by the investment bankers
tney get no more new securities to
SELL and so are forced out of business
Inc use of this club is enormousIv
profitable to the electric monopoly.
When the federal trade commission
showed 3. that the power monopoly has
Undertaken to poison the fountains
81 u pup pupil! information, from public men
- puohc schools, it rendered a pubI;c
service OF great value and opened tbe
va; way 70 another greater still. II c s1
= y WI VIII ascertain and tell the public
~ ueean exactly how much water
n rney are paying interest on when thew
my Rus snelr electric bills, and out of
tbsv now many hundreds of millions
unjust rates. EACH year In
The Pinchot pamphlet on tho 49,,
Oopoiy contains an alphabetical
u