Evening star., 1932-06-10
WASHINGTON OBSERVATIONS
BY FREDERIC WILLIAM VILE.

II certain authorities have their way
the Senate Banking and Currency Com
mittee. which has been turning the
searchlight on New York Stock Exchange
operations. will soon spring a bomb
shell destined to reduce the Wall Street
revelations to dud by comparison. 1t
is into frenzied finances in utilities that
the Senate committee-ii it takes the
projected action-will next delve Capt.
tel Hill seethes with reports that three
of four of the big utility systems have
caused losses Of sevTal billion dollars
to the American pubic through high
pressure security sales campaigns. These
drives are going on even now. They
deal with gas. electric and oil stocks for
the most part. In a quarter familiar
with possibly impending developments
the statement is made that the gigantic
frauds which came to light in the
Kreuger & Toll affair are a fleabite
alongside some of the things that
could be dragged to light in utility
finances.
According to these allegations. the
utility racket concerns not only the
investing public. but the operating COM
panies. in so far as these have been or
are being saddled with bond issues. The
So-called vicious circle extends also to
communities and consumers, because
new bond issues impose a continuous
burden upon the towns and cities in
which the power companies do business.
To meet this burden the operating COM
panies are required to charge higher
rates if they are to go on functioning.
Those who hold that there is something
rotten in the utility State of Denmark
contend that big bond issues are being
foisted upon the operating companies
very palpably for the purpose of salvag-
ing the commitments Of the utility
magnates and the banks which are
carrying their loan An example Of
what's said to be taking place Is the
order just made by the Public Service
Commission OF Illinois permitting bond
issues by three power companies lately
affiliated with the insult group.
X
President Hoover's personal lieuten-
ants at the Republican National Con-
vention in Chicago will be three in
number-Postmaster General Walter F.
Brown, White House Secretary Walter
H. Newton and former Governor and
Senator Henry j. Allen Of Kansas All
Of them will be on the spot during the
week end, full two or three days
before the convention opens on Tues
dav. Which one is the custodian in
chief of the kind of prohibition plank
Mr. Hoover would like to have hewn
into the G. o. p. platform. or whether
James r. Garfield of Ohio has it in his
vest pocket. for the moment is mys-
terry. Mr.. Garfield has been acting for
the President as eo-between with party
leaders on the tickliSh liquor question
end may be chairman of the Resolu-
tions Committee. As the convention
approaches the betting odds hourly
favor more and more the adoption OF
a plank unmistakably, if not sop
ping, wet.
Mabel Walker Willehrandt has been
selected to second the nomination OF
Charles Curtis for the vice presidency
at Chicago next week She is a strong
admirer of the Kansan who now pre-
sides over the United States Senate and
Is expected to thrill the assembled
faithful when she sallies forth upon her
eulogv of the noblest Injun of them all
Mrs. Willebrandt will sit in the front
row at the G. o. p pow-wow. as a
member of the California delegation
Chicago will be the second Republican
convention in which "Portia" will have
, played a star role. At Kansas City
in 1928. as chairman of the Commit
tee on Credentials, it fell to Mrs Willie
brandt's lot. as spokeswoman of the
Hoover steam-roller. to vamp the con-
vention into accepting the committees s
recommendations as to who was who
and who wasn't.