Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-20

eral Trade Commission inquiry into
their industry rather look to see that
proceeding explain easily the trend to-
ward merger of enterprises in that field.
Even superficial study of the problems
of generating and distributing electrical
energy shows, they say, that the big GEN.
trail plant producing current for net
work of transmission lines is greatly
more economic than series of smaller
units. All the research of laboratories
and the improvement in managerial
methods has emphasized this disparity
and has encouraged the series of tie
ups noted in recent years in the busi-
ness.
However-and the commission is ex-
pected to advertise some of the un-
pleasant phases of this-the displaced
local electrical generating and distrib-
utlng company once in while has been
able to take a toll out of the big COM
bine that frequently has been treated as
startling. Thus. central generating
plant has occasionally stretched out a
transmission line $50 miles. supplying a
whole string of communities but found
itself forced to pass through one or two
cities without including their distribu-
ton system in the new transmission
leg. Eventually the economics of the
situation has required the central en-
terprise to get control of all power out
lets along its transmission route, al
most without regard to cost, and there
nave been some very fancy figures set
on such strategically placed properties
What the central power corporations
are described as having done in other
cases is buying market; that means
that the local electrical distributing
plant has been gotten hold of at
figure probably far in excess of capital
investment. Nevertheless, the coming
of the inter connected central power
line, and the cheapening of energy
after the hook-up, it is claimed, has
often justified the high prices paid.
There is, of course, argument coming
over these points, and some of it is
likely to be heard when the commission
begins turning loose its actual data.
Swift & Co. and Armour &c Co., the
two Chicago packing concerns which
are seeking to get back rights to en-
gage in the grocery business and per-
haps also right to run retail stores, are
facing a formal opposition from the
Department of Justice which may not
be an unyielding opposition in the long
run. At least. that is the impression
that lawyers most associated with the
litigation have.
BY decree of 1920 handed down
from the District OF Columbia Supreme
Court and accepted by the packing
companies, these concerns and associate
enterprises were estopped from carrying
on a number of activities. They were
required to sell stock yards and ter
mi nal facilities in stock yards; keep re-
frigerator cars out of the business of
hauling anything except meats and re-
lated commodities; and to abstain from
distribution of groceries. Swift and
Armour have asked that decree modi-
fed, and John Lord O'Brian. assistant
to the Attorney General has suggested
to the court that the packing companies
be required to prove strictly their need
for relief. or have their petition dis
missed.
That response of the Government
legal representatives now leaves the
case open for hearing. Packer repre-
sentatives say there is no disposition to
disturb the decree in general, and are
rather hopeful that Government oppo-
sition to their limited program will in
the end prove TO be perfunctory.