Montana labor news., 1932-06-16
THE WASHINGTON SCENE
(By LAURENCE TODD.)

WESTINGHOUSE P)-Brazemy reversing their position of six days
earlier o the issue of taxing the small consumers of electricity rather
than taxing the power companies, enough members of the United States
Senate went owe to the defense of the power trust, June g., to ave that
privilege fattoned favorte of the Hoover administration, and to punish the
poor with a additional fine of seOOOOoO n more. The vote of ~ o ss
by which the Senate upheld Vice President Curtis in ruling against the point
of order made by Senator Howell of Nebraska, when Howell argued that
the Senate conferees m the tax bill had deliberately sold out the Senate,
was the most sensational triumph eve registered by the power lobby at
the capitol 1t summed up a performance at once mysterious and sinister.
The Senate conferees-Smoot, Watson, Reed, Harrison and Kfng-had re-
versed the action taken after lengthy debate and three roll calls in the
senate-and the Senate majority had approved this embezzlement OF ITS
powers.
On May 1T the Senate defeated the smoot amendment to the bill, which
would tax domestic consumers of electricity and gas-but not commercial
or industrial consumers of either-by 45 to 90. 1t defeated the Reed
amendment, which would tax domestic and commercial consumers-but not
industrial users-y AZ o 80. 1t adopted the Howell amendment, taxing
the gross earnings of power companies, privately owned, from their net
income but not otherwise, by 81 t. 10. What happened, behind the scenes
IN SIX days that tn Senate voted down Howels protest which had been
ably supported by Walsh of Montana, by AZ to SO? And why did the five
the Senate on this power issue? Robinson of Indiana, a standpatter who
is hedging on the power issue, asked this latter question of Howell. He
wanted to know whether "the power trust has more influence here than
a majority of this body" The roll call answered that it did
Howell pointed out, in arguing his point of order, that the conference
bill taxes 2eOOoOOO small consumers but leaves tax-free the factories and
other industrial users who buy oo per cet OF IL electric current lie de-
nounced the trick IS IAN outrage" Walsh said it would be found uncon-
sttutonal and unavoidable, since it also directs municipality owned plants to
collect the tax from their customers, in the sane way that it conpels pri-
vate companies to collect it from their patrons. But argument was wasted.
Senators who had voted down the same scheme, virtually, in the Reed
amendment, and who went over to the power trust o this roll call were
Ashurst Bailey, Bankhead (who walked out rather than vote) Black
(absent), Bratton, Coolidge, Hayden, MeNary' Patterson, Robinson of Ar
kansas, steiwer, Thomas of Oklahoma, Tydngs and Wagner. Senators
who voted against the Reed amendment May 81 and were absent June 6
were Halves, Pittman, Thomas of Idaho, and Wheeler The latter was paired
in support OF Howens point Of order
Norris rose after the betrayal was thus voted, and efayed Jones of Wash
ngOn, WO is to D. opposed IN te Senate race TINS year by a public
ownership man. Jones had apoogized for the vote he was about to cast
for the conference bill with the tax N the little consumers of electricity
in it. He said he RAJ sorry it had not been beaten, but the urgency of
the occasion for getting the tax bill adopted was so great that he could not
vote to reject the report. Norris commented bitterly that he had heard
Jones make this excuse several times before, when bad legislation was being
jammed through. 1t as an old pea-heard a hundred times in defense of
wrong action. He appealed to the Senate to reject the report, and thus
rebuke 10Y and prevent in the future the insulting by conferees of the
entire Senate that had entrusted them with definite obligations He said
it was evident that the big power companies we're to be left untaxed It a
time when big campaign contributions were wanted from them by party
managers. Howell had shown that the Electric Bond & Share Company had
made $50 per cent in 1881 on the actual investment in the plants of the
Nebraska Power Company one of its subsidiaries, and that this was n
of the big interests that the Senate conferees were serving, at the expense
of every family whose children study by electric light. Norris asked how
the voters would judge Senators who countenanced such a crime.
The conference report was nevertheless adopted, 46 to 35. The power
trust lobby, close to the heart of Hoover, Joe Robinson and the party ma
chine leaders on both sides, had won.