The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-10-20
No Power for Lame Ducks

The lame duck federal power commission has six
more weeks in office Before that time expires, &C
cording to present Indications it may issue ruling
which apparently would enable power companies to
evade even the small amount of regulation now pro-
vided by the federal water power act.
The commissioners Secretaries Wilbur, Hyde and
Hmley-f they do this will act the basis Of re-
nsrkable opinion written by their fellow cabinet
member Attorney General Mitchell.
The point at issue is whether Appalachian Electric
Power Company, subsidiary of Electric Bond and
Share may be freed Of all regulation in building
5000 horse power project a stream which is a
snon-navigable tributary of navigable stream
Mitchell says they can Solicitor Russell of the
federal power commission says they not. Even
a ayman easily can form an opinion as to which of
these two legal authorities makes more convincing
case.
The authority of congress to regulate power prof.
ecs is based upon its authority to control commerce
on streams,
Mitchell admits that this makes it necessary for
the company to receive a license from the commits
sion before building on either navigable stream or
ron-navigable stream. But he believes that in the
case of tributaries, the commission may find that
project is only minor part" of development of the
whole stream and entitled to license under the sec
ton of the law which provides that:
In Issuing licenses for a minor part only of
complete project or for q complete project of not
more than 1oo-horse power capacity the commission
may in its jurisdiction waive such conditions pro
visions and requirements of this act except the license
period of fifty years, as it may deem to be to the
public interest to waive"
Russell says that the application must be gov
erned by the section of law providing that any per-
son intending to build on any stream other
than those defined herein as nayigable waters, and
over which congress has jurisdiction to regulate COM
merce between foreign nations and among several
states may file declaration of intentions and
if upon investigation the commission shall find that
the interests Of interstate or foreign commerce would
be affected such person shall not proceed with
such construction until he shall have applied for and
shall have received a license under the provisions
Of this act
Russell adds This means that license shall be
Of the same character required for project on
navigahle stream. license is a license not piece
Of paper"
This is matter most vital in the history of con-
hict between private business and regulating gov
eminent
Already many companies have applied for re-
classification. TO come under the terms of Mitchels
ruling. This would mean that not one company, but
many. would be freed OF. regulation in the future.
Russell saws 1t means that the commissions author
ity over projects on navigable streams as wen-in
other words its entire authoritywf be questioned
Net even the power commissioners of the earlier
regimes with which power companies have expressed
intense satisfaction felt they had the right to pro-
coed as Mitchell suggests
Can the present commissioners, by any stretch
of governmental conscience feel that it is proper for
them to do so in the closing days of their tenure
! Of Office?