Evening star., 1934-11-26
POWER INDUSTRY
ATTACKSU. s. ACTS
Electric Institute Brands In
vasion of Field and Plans
Court War.
BY the Associated Press.

BY the Associated Press.
NEW YORK, November 2e.-The
electric power industry, charging
"barrage of attack" is leveled against
1t by various Federal agencies" has
declared war on the administrator
power program.
Planning to fight in the courts,
the Edison Electric InStitute-an as
sociation representing 80 per cent OF
the Nationals electric power inter-
ests-authorized its executives to take
any steps necessary to determine
whether there are limits under the
Constitution beyond which Govern
ment may not go in using public funds
to destroy by competitive construction
and operating the existing investments
of private capital"
Thomas N. McCarter, president Of
the institute and head of the Public
Service Corp. of New Jersey. said in
the Tennessee Valley project, foremost
Federal power development, has been
found "palpably unconstitutional" in
a legal opinion by Newton D. Baker
of Cleveland and James M. Beck of
Philadelphia.
Baker, Secretary of War during
the Wilson administration, and Beck,
former solicitor general and Repre-
sentative, were painted by McCarter
as constitutional lawyers of national
reputation"
Lillienthal Makes Reply.
The declaration of war brought a
prompt retort from David E. Lillien-
thai, director of tie Tennessee VAL
ley Authority.
THE mask is off," said Lillienthal
in a statement at Knoxville. Tenn.
THE few men in New York City
who through the holding companies
control the electricity supply of l30,-
100000 people have stepped from be-
hind the widows and orphans the
preferred stockholders, the ice men
and the coal men, and are now speak
ing in their own behalf
I'VE now have. in the open. a
clear issue between the people who
use electricity and those who have
controlled it."
The Electric Institutes Board Of
Trustees acted on November IS. three
days after President Roosevelt made
public a survey by the power author
ity Of the State of New York, which
posed "yardstick" would save con-
sumers in Northeastern States as
much as 40 per cent of their electric
bills.
McCarter's announcement came
TO tIot
communities in every State in the
Union would follow the example of
Tupelo, Miss, first to contract for
electricity from Federal develop
ment
McCarter accused Government
agencies of forcing sales" of utility
properties and concluded:
Il hope to have an early opportu-
nifty to lay this whole matter before
the President"
The institutes head said he had
asked Baker and Beck for opinions on
some four or five basic problems :"
The T. V. A. finding was requested
first, he explained.
Activities Termed Illegal.
Counsels report on the T. A. v. A.,
McCarter said, "is lengthy and con-
vincing opinion, buttressed by wealth
of citation from decisions of the United
States Supreme Court 1t holds in
substance that the legislation relating
to this project and the plan of gov
ernmental action set up therein are
palpably unconstitutional: that the
legislation. if valid, does not authorize
much that has either been done by
the authority or that it is preparing
to do. which is therefore illegal. and
that the cooperative actions of the
Tennessee Valley Authority and the
Public Works Administration forcing
sales of property of private utilities
under threat of gifts and loans to
municipalities are illegal"
Outstanding power projects of the
administration are the T. V. A., the
Bonneville Dam on the Columbia River
and the Grand Coulee Dam on the
upper Columbia. Mr.. Roosevelt has
inspected all three, the T. V. A. while
en- route to Warm Springs, Ga, where
he is at present.
Speaking on his latest tour, the
President criticized "obstructionists,
few in number in comparison with
the whole population" who, he said,
were making every effort ito block and
harass and to delay this great national
program"