Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-21

GIPBGLE0
Electric power Is q vital factor II
modern industry and modern life. Will
nearly all the industries are dependen
more or less upon electric energy ant
millions Of the people use electricity II
their households, there Is still room 10
much wider use Of power.
The Federal Power Commission IL au'
thority for the statement that 80 pei
cent of the farms of the country arr
still without service from central power
stations. It asserts, too, that one-thirc
Of the population OF the United States
still lives in homes that have no electric
service. Only per cent OF the railroad
mileage Of the country has been electri.
ned.
It Is little wonder, therefore, that the
regulation Of the electric power industry
Is subject Of discussion. Particularly be-
cause 1t Is bound up with the water
power-a great natural reSource-the
subject of regulation of the power in
dustry has become q political issue In
many of the States. The attitude Of the
two major political parties and theiI
candidates for President toward the
water-power question became major
issue in the last campaign. For example
because Senator George w. Norris OF
Nebraska, Progressive Republican, took
the view that Alfred e. Smith was more
favorable to his conception of the Gov
ernment'S proper course toward water
power, its development and regulation,
than was Herbert Hoover. Norris threw
In his lot with the Democratic nominee.
Couxens Regarded rs Progressive.
The question Of Federal regulation Of
rates charged for electric power In IN
terstate commerce Is likely, therefore. to
be dealt with from q political point Of
view when the subject comes up for
legislation In Congress. The economic
situation, under such circumstances, Ia
sometimes forgotten in the heat Of poll
tics. Senator James CouzenS Of Michi-
gan, chairman of the Senate Interstate
Commerce Committee, Is generally re-
garded as belonging to the progressive
group" In the Senate. He is for Federal
regulation Of electrical power. which en-
ters into interstate commerce. as evil
denced by the bill he has now before
the Senate. 49,. s
The Senate Committee on Interstate
Commerce has greater number Of con-
servativeS than progfessives in its pres
ent makeup. In addition to Senator
Couzens, the progressives on the COM
mittee are Howell Of Nebraska, Pine of
Oklahoma, and Brookfart Of Iowa, on
the Republican side, and Din OF WASH
1ngton and Wheeler Of Montana on
the Democratic side. This does not
mean, however, that Senator CouzenS
cannot prevail upon his committee to
report out the regulatory blu, although
lei has become accustomed TO regulatory
regulation, especially where 1t deals with
public utilities. In the coming short"
session OF Congress, which ends March
4, 1881, 1t ID not likely that there will
be suficient time to put the Couzens
bill through Senate and House. Prob
ably it will not be possible to do more
than hold public hearings before the
Senate Interstate Commerce Committee
On the measure.
Association TO- Be Heard.
when the hearings are begun It may
citation Of Railroad Utilities Commits
sioners win be heard throuaiC lts repre-
sentatives by the committee. The asso-
citation, 20 far, has taken no definite
action regarding the Couzens bill for
the regulation Of power I'd interstate
commerce. The association represents
the railroad and public utility commits
stons Of the States. 80
The State commissions are opposed,
generally speaking. to the further en-
croachment OF the Federal Government
IA the fields Of regulation, while the
commission feel that they are doing
wei. At the annual convention of the
National Association OF Railroad Utility
Commissioners in 1929, resolution was
adopted In connection with the CouzeTls'
bill seeking TO bring about Federal regu-
latton of all kinds of communications. :"
This regulation put the Association of
commissioners on record as opposed to
the Couxen communications" bill and
70 the enlargement OF Federal regulation
whereby the regulatory powers Of the
state commissions would be interfered
WIZ IN 9 neld where they are now ade-
Representatives Of the State commits
eions, 1t may be said, admit that there
Is one spot In the interstate power BUSH
ness which can be reached only by
Federal regulation. That Is the con.
tract between a generating company
located in one State and o distributing
company located In another. Outside
u such contracts, the State commissions
insist they are quite capable Of taking
care Of the situation. Furthermore, they
insist that so far there has been no de-
mand for regulation of these contracts
Tor the interstate purchase of power.
But they do not wish to be placed in
:he position Of fighting the regulation Of
these interstate contracts for power by
the Federal Government, provided the
Federal Government will be content
With that measure of regulation and will
not invade the territory Of rate fixing
for consumers In the several States.
That Is function which the State
commissions believe Is purely local and
can better be dealt with by the States
themselves than by the Federal Govern
u1ent. So
Question of States Rights.
The State commissioners contend that
. commission in California can arrive
more fairly at Just rate for electricity
consumed In California than can Q
Federal commission in Washington
Right there the question of States
rights come in. It Is q question that Is
likely TO trouble the members of Con.
gress who wish the Federal Government
to regulate everything.
Senator CouZens takes the view that
his power regulation bill will not UNDER
mine the powers of the State public
utility commissions In an article pub
lished in the Public Utilities Fortnight
iy he gives his reasons for saying that
the State commissions have nothing to
fear from his bill.
st believe In home rule" said Senator
Couzens. 81 believe that Government
should be kept close to the people as
possible"
He insisted, however, that Federal
regulation was needed to supplement
the regulation Of the power companies
by the States, making reference TO the
fact that the States cannot touch con-
tracts entered into between generating
companies In one State and distributing
companies in another and to the fact
that holding companies appear to be
able to keep aloof from State regulation.
Seeks to Safeguard Rights.