Evening star., 1930-12-11
Members of Committee Indi-
cate They Plan Probe of
New Commissioners.
McNINCH MAY APPEAR
FOR INQUIRY TOMORROW
Couzens and Howell Question For.
mer Head Of Geological
Survey Closely.
BY G. GOULD LINCOLN.


DR.. George Otis Smith, for years
director Of the Geological SURVEY and
now appointed chairman of the Federal
Power Commission by President Hoover,
was grilled by the Senate Interstate
Commerce Committee today, which is
considering his nomination.
BY their questioning Of DIR. Smith,
the members of the committee indi-
Gated they intend TO make q search
ing investigation Of all the members
OF the new Power Commission. After
two hours on the stand the committee
had not finished with DIR. Smith and
will resume Its questioning of him at
2:30 pm.
McNinch in Capital.
Frank r. McNinch of North Caro-
lima, leader of the anti-Smith Demo-
cratic forces in his State during the
1928 campaign, whose appointment to
the Power Commission Is expected to be
attacked by some of the Democrats,
Is in the city, but may not be heard
until tomorrow.
DR.. Smith told the Senate commit
tee that he was in full sympathy with
the law Of 1920, which looks to the reg
ulation by the Federal Government Of
power transmitted In interstate COM
merce.
DR.. Smith was replying to q question
by Chairman Couzens of the committee.
Senator Couzens called attention TO the
fact that the existing law does not
cover the question of the regulation Of
power derived from steam, but relates
only to hydro-electric power.
Two Are Intertwined.
DR.. Smith replied that the two, hy-
dro-electric power and power produced
by steam, are so intertwined that he
did not see how one could be regulated
by the Federal Government without the
other. Senator CouzenS has before his
committee bill which provides for the
regulation by the Federal Government
OF all power which goes into interstate
and foreign commerce.
DIR. Smith was questioned at length
by Senator Howell of Nebraska regard
ing the effect up to the present time
OF regulation by the States of electrical
power and light companies. Senator
Howell took as his text the fact that
In Toronto electric light was sold to
consumers for about 2 cents per kilo-
watt hour and that the charge in many
cities Of the United States ran 715, 8
or cents He asked Dr. Smith wheth-
er, in view of the wide divergence in
these charges, he believed that regu-
lation IN the country by the States had
been effective.
Wants Time TO Study.
DR.. Smith said in reply that he would
want to give several days study to the
question as it Is related to individual
cities, Birmingham, Ala, for example,
before he gave his opinion as to whether
the rates charged were fair. He said
there were a number of facts he would
like to study and mentioned the uues-
ton OF taxation as one of them. DR..
Smith insisted however, that he be-
lieved the regulation of electrical power
companies In this country had made
considerable advance and had been for
the benefit of the people.
You approve generally, then. the
rates which are charged in the United
States for electrical power" demanded
Senator Howell
I would be far from making such
statement" replied DR.. Smith. "I know
that the regulatory commissions in the
states nave met the opposition of the
power companies and in many instances
OF the State legislators
Asked About Public Plants.
Senator Dill Of Washington asked
whether municipal plants for the pro-
duction and distribution of electrical
power were not effective in bringing
down rates charged for such power in
this country.
DR.. Smith replied that municipal
plants produce only about per cent
Of the total energy produced in this
country and that therefore they could
not atect the total charges to q great
extent. He said, however, that in GER
tain localities competition of the mu-
nlcipal plants had been responsible for
reducing rates.
What would be your attitude" asked
Senator Dill, "if you become Chairman |
II the Water Power Commission. as
'etWeen municipal plants and privately !
operated plants?"
The law favors municipal plants"
aid DR.. Smith. THAT would be INV |
attitude as an official of the Govern |
nent." He added that as a citizen he |
would have the same attitude, although |
ne would wish to see what would be the |
erect OF taxation upon the citizens
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