Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-04
POWER TRUST'B|LL
APPROVAL IS SEEN
Administration Is Expected
to Support Legislation to
Control Operations.
BY WILLIAM HARD.

The ADMINISTRATOR Will 1cIlu cdIucoI
support in Congress to new legislation
establishing Federal control over all
interstate operations Of the so-called
power trust"
That is the certain prospect here
TODAY, and It Is generally politically
held to constitute, in effect, even If not
in design, an attempted answer to the
anti-"power trust" agitation of Gov.
Roosevelt of New York, who at the
present time seems far in the lead to-
ward the Democratic nomination Tor the
presidency in 1892.
independently OF the administrator,
Senator Couzens Of Michigan IS push
ing his proposal for Federal Commls-
sion on Communications which Is TO
be amended into being a Federal Com
mission of Communications ana POWER.
Senator CouZenS has the personal
svmpathetic confidence and support OF
the progressive" element In the SEN
ate. and at the same time his plans
for Federal supervision OF the inter-
state practices of electric power COM
panies are known to have, IN principe,
The backing of high administration
authorities.
Present Organization Disfavored.
It is also known that the present ad-
n1iniSCration looks with strong olSIaVor
upon the existing organization OF the
Federal Power Commission, Whlcn To-
day is the Federal Governments only
agency for dealing with the electric
power problem. That commission Is
composed of three cabinet members
the Secretary of War, the Secretary
of the Interior and the Secretary OF
Agriculture. All projects for the ad-
mInistrative reorganization OF the Feo-
eral Government are hostile to the per-
netuation OF commissions thus COM
posed. .,. ..o,,,,o,.
constituting the Federal Power COM
mission is overwhelmed with WORK III
his own department.. None OF tIeHl
has ever been able to give to MS outles
in the Federal Power Commission any
important amount of time or energy;
The commission has been a neglecleo
step child of successive ADMINISTRATORS
and, additionally, on top OF oemg
neglected by Presidents and cablnet
members. it has been pretty well
starved to death by Congress.
THE total budget estimate for the
Federal Power Commission for TINS
fiscal year was well under $2OO,O00.
That has been the total amount aVaii,
able for the covering OF the vast neIo
of the Federal Governments legai pow
ers and national duties toward the
transmission Of electrlc power IA III
terState commerce. :.
Today the administration realizes, IL
is creditably reported, that the Federal
Government must bestir itself IN TINS
field if the economic welfare OF the
country is to be properly served ana
also if the power trust" question IS
to be prevented from becoming
perilous political issue.
We may expect to see from now on
sort of race between the Democratlc
New York State government and the
Republican Federal Government TO
find out which of them can outstrlp
the other in useful and popular cleo
trio power reforms.
Senator Couzens' bill lays down the
proposition that 1.-The rates and charges
for the sale, to distributors or con-
sumers, of electric power transmitted
in interstate commerce shall De just
and reasonable" and provides 1or an
administrative scheme whereby tne
State governments shall De encouraseu
to cooperate with the Federal Govern.
ment in establishing that business ana
reasonablenesS.
At present the State governments, on
the whole and on the average, present
as scandalous a picture in this matter
rs the Federal Government itself.
There actually are seven States, &C
cording to the information in the files
of the Federal Power Commission,
which even now have no special State
commissions for the regulation OF the
rates and charges of electric power
conopanies. These States are Delaware,
Florida, Kentucky, Minnesota, SoutH
Dakota and Texas.
Additionally there are five States IN
which the jurisdiction of the local State
regulatory commissions Is extremely
limited and feeble. Those States are
Arkansas, Iowa, Louisiana, Nebraska
and New Mexico. Finally among the
remaining States, there are many wmcn
have regulatory commissions decloediy
weak in personnel and decidedly mel
fective in action.
ONLY about one-half of our States
have given to their regulatory COM
missions any authority whatsoever Tor
controlling the issues OF stocks ana
bonds by electric power companies.
Senator'S Actions Amaze Observers.
In these circumstances the Federal
Government is politically amazed thal
so many Senators, instead OF nrst
stimulating their local State govern
nlents into action, should begin by at
lacking the Federal Government tor
inactivity.
Electric power transmitted in inter-
state commerce and therefore coming
within the jurisdiction OF the Feceral
Government is only 10 yer cent OF the
total amount of electric power Pro-
duced in the country.
Some States, however, are exporting
power in quantities far above the leve
indicated by that average percentage
Iowa exports to other States 90 pei
cent of the power which 1t produces
Vermont exports "a per cent.
Other States are largely dependent
upon importations OF power for the
successful conduct of their industrial
and municipal life. Maryland import:
from other States, 40 per cent Of thu
power which it consumes Mississippi
ports so per cent.
Such figures are held here to SHOW
that a field of regulation exists which
the Federal Government has been neg
lecting and which 1t must occupy.
Senator Couzens' bill provides tina
the proposed Federal Commission or
Communications and Power shall lister
to complaints from State commission
or from governors regarding interstat.
electrlc power TdCcS VI Chlat go. ~ otlee,
thereupon help to set up Joint boards
of representatives of the States in which
the bower is either produced or con
sumed. These "joint boards" acting a
interstate agencies, shall have the RICH
to reach decisions. Appeals from shos
decisions to the Federal Commission OF
Communications and Power may p
taken. If, however, the States shoult
default in their duty in these matters
the Federal Commission on Communi
cations and Power may, in certain cir
cumstances, take the initiative and &C
and decide by itself on its own authority
1t has been thought in some quarter
that Sar,atnr CnllZenS, nlan would nav