Evening star., 1935-04-28
MODIFIED CONTROL.
OF GAS IS ASKED
Natural Product Utilities
Hope to Escape Holding
Firm Regulation.
BY the Associated Press.

BY the Associated Press.
Natural gas utilities appealed yes
terday to the Senate Interstate Com
merce Committee to divert from them
the blow assertedly aimed at electric
holding companies.
Their appeals were supplemented
by q suggestion Of former Gov. Clyde
M. Reed of Kansas that the bill to
abolish utility holding companies and
to place operating utilities under
drastic Federal regulations be revised
generally to avoid adverse effect on
the security holdings OF small IN.
vestors.
Reeds testimony was followed by
that of Ralph B. Feagin. Houston,
Tex. attorney, representing natural
gas producers; r. w. Gallagher. vice
president. In charge Of the gas divi-
sion of the Standard Oil Co. Of New
Jersey, and George B. Chandler, exec
utive secretary Of the Ohio Chamber
of Commerce.
Indorses Some Legislation.
Pleading for q tempering hand In
abolishing holding companies, Reed
said that nevertheless. he hoped this
session of Congress would bring legis-
lation Ito f1ll in the gaps In State
Utility Commission control of public
utility service"
He said the State Utility Commits
sion needed two main Federal props,
one to aid in governing interstate
transmission Of natural gas. and q
second In guiding issuance OF securi-
ties by the various holding companies
or lsrge-scale operating companies.
At the same time he declared there
was q fundamental" defect in the
bill In that 1t sought to divide au-
thority among three Federal Commits
sions-the Securities and Exchange
Commission. the Federal Power Com
mission and the Federal Trade Com
mission supervision Of gas distributing
companies.
He argued that the power and
trade commissions be given control
Of the types of securities to be issued
by the utility companies. Their
intimate knowledge Of operating
company affairs. he asserted, placed
them in a far better position to de-
termine the feasibility Of proposed
security issues than the Securities
Commission.
i am inclined TO agree with you in
that" Chairman Wheeler. co-author
of the bill. declared.
Close Affiliation Cited.
Gallagher. as a spokesman for the
Standard Oil Co. declared the bill
would bring under It's Jurisdiction
the oil companies. regardless OF the
fact it was so designed. This would
come through the close affiliation be-
tween oil production and gas produc-
ton. he said. He joined Feagin in
asserting that the two were so closely
integrated that to separate them
would be mot in the public interest. I"
Chandler barely began his testi-
mony when he was brought up short
by Senator Wheeler.
Il do not represent utilities" he
began. although I would by no
means be ashamed to do so. Be
their mistakes what they may have
been. they have far exceeded in
efficiency and integrity of purpose
! the Government that is pursuing
them"
Perhaps you are not a propa-
gandist." Wheeler interrupted. but
many Of your so-called independent
commercial organizations are under
direct control Of the utilities affected
in this bill
Not the Chamber of Commerce of
Ohio" Chandler insisted.
"All right" Wheeler agreed. I'VE
will say not your organization" but
he asserted his statement applied to
others.