The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1930-02-28
"ROTTEN GOVERNMENT"
From The Washington Daily Newsl


Conditions in the commission have become so
intolerable that it presents of the rottenest
exhibitions of government | have ever heard Of.
That is Sen Couzen's Indictment of the Federal
Power Commission after hearing testimony Of
commission experts at the Senate investigation.
1t is an extreme indictment. But we are in
cned to agree with it. Moreover, venture the
prediction that when the public belatedly begins
to understand the brazen negligence with which
the Power Commission has failed TO enforce the
law and to protect the peoples interests from the
power corporations, the politicians are going to
hear about this issue until it hurts.
There is a limit even to that public indifference
which is the brief salvation of cynical officials.
Here is an issue which touches the voters in their
pocketbooks, sensitive spot.
William v. King, chief accountant of the COM
mission, detailed to the investigating committee
how power corporations by hook and crook, in
season and out, have worked to undermine the law
and TO block the efforts of such commission Off
Gals who have been trying to carry out the law.
And the corporations have been getting away with
it.
Here is one instance, according to King When
he sent to a House committee in 1923 confiden-
tial memorandum setting forth certain damning
facts about the financial operations of eight
porations and the need for increased commission
personnel to keep line such activities, the
report was withdrawn at the instance of power
companies. The report was returned TO the COM
mission, the dynamite removed from it and
harmless" substitute sent to Congress.
Among the instances given by King of the cor
porations' practice of kting valuations was that
of the Northern Connecticut Power Co. The COM
pany put value of $1O5O,OOO on its water rights,
but "when the income tax people suggested that it
pay tax this sum, they protested that it was
fictitious and not subject to tax"
The testimony of King and Charles A. Russell
solicitor of the commission, is final proof of the
need for reorganization of the commission, reform
of its technical personnel and methods, and a
stricter water power act.
! The present commission, consisting of the Sec
retaries of War, Interior and Agriculture, should
be suppanted by ful-time commission as pro-
vided in the Couzens bill The present commission
has been in session average of only about
five and half hours year-to regulate billion.
collar industry. Thus active control has reverted
to the executive secretary, F. E. Bonner.
Bonner according to the testimony of his asso-
cates has tried TO destroy the accounting division
of the commission upon which the vital work of
valuation depends, and in many ways has served
the interests of the corporations. Asked why the
commission had not gone in and taken the finan>
cial records which corporations refuse to give it.
the commissions solicitor replied:
"The law gives us authority to do so, but Mr.
Bonner stands in the way"
In the face of these serious charges against the
commission of which he is a member, Secretary
of the Interior Wilbur has made weak statement
that San unsatisfactory and inharnronious situa
ton exists In the staff of the Federal Power
Commission"
The situation will continue TO be aunsatisfac
tory and inharmonious'- very costly-so Ion,
as the commission consists of three Cabinet off
GERS who have no time to do the Job and leave 4
IN the hands of such executive secretary.