The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-05
UTILITIES USED
WOMEN'S CLUBS
TO FIGHT FOES
Rural Banks Also Linked
to Propaganda War by
Trade Board.


ganda activities, the Federal Trade
Commission reported to Congress
today.
Their report was the fourth sec
ton Of a general summary OF utility
propaganda activities uncovered in
a six-year investigation. 1t covers
outside agencies"
Extensive purchase Of member
ships in the United States Chamber
Of Commerce and local organiza-
tons was used 10 swing them into
line in the campaign against Gov
ernmcnt ownership. the report says.
In the nine months prior to
March 81, 1923, the commission re-
ported, the National Electric Light
Association. central propaganda bu-
reau Of the utilities. spent s38,386.75
for dues and contributions to or
CARNATIONS. including $4,000 to the
General Federation Of Women's
Clubs"
Non interest bearing deposits
were made in country banks, the
report shows.
Linked TO Public Officials
State utilities commissioners,
charged with regulating the COM
panies in the public interest, were
paid fees and expenses for speeches.
The ETC reports that relations be-
tween utility interests and state
rsreg H-rf 81
In some instances the utilities
advised and even drafted regula-
tons and forms for state commits
siOns.
From the initiation of the public
relations section of National Elec-
trio Light Association in 1920 up to
and including 1923, the active back
ing of the utility program by both
the national and state Chambers of
Commerce was sought and pro-
cured" the commission says.
Various presidents of the United
States Chamber of Commerce put
themselves behind the utility pro-
gram in their addresses"
Fought Gov. Pinchot
! Speeches by Julius II. Barnes and
Lewis E. Pierson, presidents of the
organization in 1923 and 1927. re-
spectively. were printed and circu-
lated by the utilities.
State organizations, it was re-
ported, were used in California to
fight a state water power act, in
Illinois TO elect a member of the
State Utilities Commission and in
Pennsylvania to fight Gov. Pinchot's
giant power program"
Discussion of the use of bankers
is introduced with an excerpt from
a letter of an Illinois utility Off
Cial to a colleague in Wisconsin.
telling him that they had great sue
cess using investment bankers be-
fore state legislative committees.
"DepoSiting utility money in
scattered banks. without requiring
any interest on such deposits, is
frankly admitted to have been used
to secure local bank support by
President A. F. Hockenbeamer.
president of the Pacific Gas and
Electric Company. in a letter." the
FTC reports.
Bank Link Is Revealed
He wrote: We discovered the
country bank quite a number of
years ago. We came to the con-
clusion about Is years ago that as
a practical incentive for them to go
TO work for us. there is no substi-
cute for deposits. A worthwhile &C
count has. therefore. been the key
stone Of our policy. . We have
at this time accounts with go coun-
try banks all over our territory, and
while our policy keeps around
million and half dollars tied up d.
We believe it is well worth while.
incidentally. we require no in
terest on these deposits. We
have had occasion to test their
friendlineSs and they have never
failed us.
During our two big campaigns
against the so-called water and
power acts they literally sent out
hundreds of thousands of personal
letters and pieces of literature to
their depoSitors and stockholders. as
we'll as campaigning against the act
personally
Secret Cooperation
Four pamphlets. written by
George F. Oxley. publicity director.
National Electric Light Association,
were circulated under the imprint of
the Investment Bankers ASSocia-
ton and by insurance companies.
Mr.. Oxley. the report says. warned
utility information bureaus mot TO
in any way mention" their connec-
ton with the preparation of the
propaganda.
Contacts with state utility COM
missions were treated with utmost
secrecy. the commission reported.
quoting a letter Of George E. Lewis
Of the Denver utility Office.
This attitude Of support ter
state commissions and commission
erS is also emphasized in the brief
filed with the Senate Interstate
Commerce Committee. even TO the
extent Of suggesting that any Fed
eral inquiry into the utility industry
would violate the comfy with states
and be a reflection upon the COM
missions" the report says.
Helped Check Textbooks
The Pennsylvania and New Jer-
sey commissions are reported to
have co-operated with the utilities
IN surveys Of textbooks in their
states.
The National Electric Light ASso-
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