Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-19

I Esss providing for a As-hOur work
President Hoover. generally speaking,
has opposed any "encroachment upon
the rights Of the States" However, In
his annual message to Congress last
December, discussing electric utilities
and electric power, President Hoover
THE nature Of the electric utilities
industry Is such that about 90 per cent
OF all power generation and distribu.
ton Is interstate in character, and most
OF the States have developed their own
convenience, rates and profits Of such
utilities. To encToach upon their au-
thorttieS and responsibilities would be
an encroachment upon the rights Of the
States. There are cases, however, Of
interstate character beyond the tUris-
diction Of the States. To meet these
cases 1t would be most desirable II q
method could be worked out by which
initial action may be taken between the
commissions Of the States whose joint
action would be made effective by the
Federal Power Commission, with q re-
serve to act on its motion In case Of
disagreement or non-action by the
States"
In measure, the Couzens bill may
be called an answer to this recon-
nendatton made by the President Of
the United States, That the bill goes
much further in its regulatory provisions
than was implied by President Hoover
in his message to Congress Is doubtless
true.
BiIl's Provisions Outlined.
An examination Of the bill shows that
1t sets up Federal regulation Of electric
IN feako "a
following lines: It permits unified con-
troll Of electricity produced from water
power and coal power, instead of deal
ing alone with hydroelectric power.
The regulation of holding companies Is
provided, as well as the regulation Of
management companies and companies
that control through advice" as well as
through stock ownership. The Federal
Power Commission Is given access TO all
records Of such companies. The COM
mission Is empowered to establish val
ing and transmitting and distributing
electric power for the purpose Of fixing
reasonable and just rates. The elimina-
ton from such valuations of all fran
chises and gifts for the purpose of ar
irving ct reasonable rates Is demanded
in the bill. The commission is given
authority TO regulate the issue Of Sc
cufltleS OF poLn Operating ana uoIdlng
companies. The whole act gives oppor-
tunity for securing accurate informa-
ton as to power operations and the
relations Of the various companies
dealing In power. In other words, the
Federal Government, through the
power commission, will be In q position
to say whether or not there is power
trust"
The bill, according to Senator Couz-
ems, contains suficient safeguards
against Federal encroachment on States
rights. and it provides. as suggested by
the President. for Joint boards, repre-
senting the States involved, when II
comes TO hearings for rate-fIxing The
determination Of these Joint boards be-
comes the action of the Federal Power
Commission, unless conditions arise
which make 1t necessary for the Fed
eral commission TO take appellate Jufis-
dtction. The State Public Utility Com
missions. however, are skeptical. They
are inclined to see loopholes through
which the Federal Government may be
brought into the regulation Of matters
now In their exclusive control. And the
State comniissiteas are prepared TO. Tight
for States RIGHTS"