The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-09-22
UTILITIES RULE
PLAN OFFERED
BY ROOSEVELT
Nominee Lists 8-Point Pro-
gram in Talk at Port.
land, Ore.
URGES FULL PUBLICITY
Community Right to Own
and Operate Service Is
Recognized.
By FREDERICK A. STORM
United Press STAFF Correspondent

ABOARD ROOSEVELT SPECIAL,
EN- ROUTE TO SAN FRANCISCO,
Sept. Ex-Governor Franklin D.
Roosevelt entered California, the
home state Of President Hoover, to-
day as the nation digested his
eight-point policy calling for a new
deal in governmental conduct in
water power and utility regulation.
Roosevelt swung farther south
along the Pacific coast after hav-
ing delivered at Portland, Ore, the
third of the four major speeches
he scheduled for his transconti-
mental campaign tour.
The Democratic presidential NOM
inee pledged, If elected, no surren-
der by the federal government of
its sovereignty and control over its
power sources, and the following
remedies for the regulation and
control of public utilities engaged
in the power business:
Eight Points in Program
Full publicity as to stocks, bonds,
liabilities and gross and net earn
ings
Publicity on all stock ownership.
Publicity on intercompany con-
tracts and interchange of power.
Regulation and control of hold
ing companies by federal power
commission.
Cooperation of power commission
with public utilities commission of
the states on matters of regulation
Regulation and control of stock
and bond issues on principle of pru-
dent investment only.
Abolition of reproduction cost
theory for rate-making, replacing
it with actual money prudent-in-
vestment principle as rate-making
basis.
Legislation making it a crime to
circulate false matter relating to
public utilities.
Views on Ownership
Taking up what he termed "the
other great problem of relationship
of the government to the develop
ment through the government it
self of power resources and power
manufacture" Roosevelt explained:
Il do not hold with those who
advocate government ownership or
government operation of all utili-
ties. | state to you categorically
that as a broad general rule the
development of utilities should re-
main, with certain exceptions,
function for private initiative and
private capital"
The Governor went on to say,
however, that should community
become dissatisfied with the service
or rates of a private utility, it had
the undeniable right as one of its
functions of government and home
rule to set up. after a fair refer
endum, its own governmentally
owned and operated service.
AS to state-owned or federal
owned power sites, Roosevelt de-
clared they can and should be de-
veloped properly by the government
itself"
Cites insult ''MOnstrOsity"
when so developed, private cap
ital should be given the first oppor-
tunity to transmit and distribute
the power on the basis of the best
service and the lowest rates to give
a reasonable profit only" the nomi-
nee said.
The power ISSUE" he said, when
vigorously handled in the public
interest, means abundant and
cheaper current for American in
dustry, reduced rates and increased
use in millions of homes, and pres
ervation of our water power re-
sources in coordination with flood
control. reclamation and irrigation"
Assailing the Republican admin
istrations position on the power
question, the nominee remarked
that lit proposes to continue as in
the past to allow the interstate
promoters and manipulators of pub
lie utilities to play fast and loose
with the American public without
adequate regulation or control.
He referred to the crash of the
insult empire as a financial mon
strosity that has opened our eyes
to the fact that private manipula-
ton has outSmarted the slow-moy-
Il