Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-25
UTILITIES CONTROL
|SLEFT TO STATES
Federal Assurance Given In
dustry in Power Commits
sion Stand.
BY DAVID LAWRENCE.

Coincident with the bringing to Wash
ington Of public utility executives to
participate In the plans for expansion
of construction activities, the Federal
Power Commission has given the indus
try an assurance that means more to 1t
than anything that has happened this
year.
It is an assurance that the Hoover
administration stands for State instead
If Federal control of utilities. For many
months the utility industry has felt that
hanging over 1t was threat OF Federal
control. Investigations undertaken by
the Federal Trade Commission at the
request of the Senate have by no means
been completed. In fact the commission
has just begun its inquiry into the
financing of the utility holding COM
panies, and will continue Its work ior
several months to come. The industry,
on the other hand, has had the fear
that the Senate or House would, as a
consequence Of these investigations,
propose form Of Federal control.
Senator Walsh Right.
Senator Walsh of Montana, who In
stigated the inquiry originally, said he
was not prepared to say what zion
would be needed, but that he felt that
even the State commissions would lie
enlightened by the Federal investiga-
ton. This has proved to be correct, for
already some of the States are asking
the Federal Trade Commission for data.
New York State is making an inveStt-
CATION OF its own. and recently asked
for the findings Of The Trade Commission
on cretain points.
But the Federal Trade Commission,
In its final report, will make recon-
nendations which can only be put into
~ af CnnufaGG
that the Hoover administration goes on
record now as favoring continuance
of local regulation by the States Is big
news to the utilities, because they will
have the administration support against
any proposal OF Federal regulation.
Some of the State public utility COM
missions already have gone on record
against Federal control.
The report of the Federal Power
Commission was made public by DR..
Ray Lyman Wilbur, Secretary of the
Interior, and Mr.. Hoover's intimate
friend. Secretary Wilbur is handling
the Boulder Dam hearings, and is con-
versant with the pro and con of the
power controversy. The words in the
power commissions report will there
fore take on the significance of an adj
miniStration utterance. The commits
sion Is charged with the regulation of
water power on navigable rivers and
public lands.
Authority Of Government.
The Federal Government, of course. IS
recognized as having authority to deal
with the interstate transmission of cleo
trio current, while the utilities chal-
lenge the theory that the Federal Gov
eminent has any control over transmits
sion within State boundaries. Less than
10 per cent of all the energy generated
Is transmitted across State boundaries.
Congress has not yet dealt with the
problem of regulating the interstate
transmission, through several plans have
been suggested, among them one by
utility interests ealing for Federal APP
proval of agreements between utility
commissions Of contiguous States
where the interconnection occurs.
The viewpoint of the Federal Power
Commission will be disputed by the
advocates Of Government ownership and
Federal control. But at this time when
the utility industry is being asked to
undertake construction programs to help
the business situation 1t will regard as
great stimulus the fact the Federal
Power Commission takes its side of the
controversy on the purely regulatory
phases Of the power business.
(Copyrieht, 1920