Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1934-12-27

:. y meeai'a the utilities would eff
feet the reforms in financing that Mr..
Roosevelt has called tor. and then re-
quested that the government join with
the institute in a suit to test tile con
stitutionality of the Tennessee Valley
authority.
In the memorial he handed TO the
President, Mr.. McCarter gave 1t as his
W opinion that the government In
the IVA experiment is exceeding Its
constitutional powers and infringing
the sovereign rights of the state. He
cited the joint opinion of Newton D..
Baker, Democrat. and James II. Beck.
Republican, that IVA Is unconstitu-
tional and the similar conclusion" of
United States Judge w. |. Grub In a
recent decision.
Mr.. Roosevelt turned the memorial
over to Frank X. McNinch, chairman
of the federal power commission. and
he and his aids speedily prepared a
sharp reply rejecting the proposal of
cooperation In carrying the matter to
the Supreme court.
people" II said, no parallel for such d
proposal can be found. The call
Is not for the government to halt, but
for the industry to catch step and move
forward along progressive lines"
''The Edison Electric Institute has.
of course" 1t continued, "a legal right
to promote litigation TO test the act
creating the Tennessee Valley Author
fty or any other statute. but 1t will
make no substantial progress toward
placing the industry on a sound and
permanent basis until 1t cleans It's own
house, reduces excessive rates to con-
sumers and eliminates the mi malpractice
and abuses which are responsible for It's
present condition"
Attacking Mct'arter's contention that
rates are reasonable, Mr.. McNinch said
Canadians pay on IN average 2 ID
cents for a kilowatt hour. while Amer
leans pay 5h cents. He said the Cana
dian figures cover public and private
plants, the LATTER supplying "46 per
CEN of the consumers"
TT Is the purpose OF the admins
t%ration," he set forth. Ito narrow this
excessive gap between what the con-
sumner pays for electricity In this coun-
Try and what Canada has proved 1t can
be generated and sold for. This pro-
gram does not involve either 'destruc-
tive competition or strangulation."
nR. HUGH S. MAGILL, president OF
- the American Federation of IT'LL
ity Investors, entered the utility con
rroversy with d hot attack on the fed.
eral trade commission. charging that
1t Is throwing out a smoke screen to
befog the public mind In its desire ia
win approval for the entry of the fed.
eral government into the electric light
and power business through such eff.
forts as the Tennessee Valley Au,
thority.
The smoke screen, he declared, was
the pr%onouncement of the commission
to the effect that public utility com
panies had boosted pre-depressior
prices In a market In which investors
afterward lost millions of dollars.
1.-THE clamor for the government II
enter private enterprise" said Doctor
Magill, enjoys the sponsorship frs
of the Communists who have no re
gard for private property, second o.
those influenced by socialistic propa
ganda to believe that the production o
electric power under government own
ership would be In the interest Of pub
dc welfare, and lastly of the spells
men In politics who see the tremendoti
opportunities such a system woul
offer for added power and politica
spoils."
CENATORIAL investigators of mt
- nitions and the War department
clashed when Clark Of Missouri SUI
gested, In a committee hearing, tha
the war mobilization plans of the d.
partment, long held secret, should b
laid before congress In peace time [
be debated at leisure. He held tina
under the army's plan. the eight bill
embodyIng the scheme to mobilize tn
nations would be rushed
congress to pass under whip an
spur" without proper consideration.
war department witnesses reptile
that the war policies commission b
-lieved certain legislation might be he
unconstitutional In peace time but |
gal In z war emergency.
Senator Clark also sought to leal
what degree of control was confer
plated by the censorship" plan Of Il
army. This calls for an Administered
of public relations who would mobllii
aall existing mediums Of publicity
that they may be employed to the be
possible advantage" He also you