Evening star., 1935-08-19
ROOSEVELT STAND
ON UTILITIES HIT
Demand for 'Death Sen
tence" Held Playing Into
Hands of Foes.
BY DAVID LAWRENCE.


playing into the hands of the utilities.
One word from him and the conferees
of the House and Senate could reach
an agreement and there would be
legislation at this session regulating
holding companies in the electric
light and power field.
But Mr.. Roosevelt Is represented as
feeling that unless he can get the con-
ferees to accept the Senate bill, which
provides for the death sentence" he
should make an issue Of it next year.
The utilities, on the other hand,
would be pleased If even the House
bill, which has the contingent death
sentence" in it, we're to fail to become
law. too, and thus assure no legislation
at all.
So In a sense Mr.. Roosevelt Is doing
the very thing which the utilities want
done-blocking any legislation. 1t
might be argued that the utilities are
the ones to make concessions If they
want to avoid more drastic legisla-
ton next year. But they are con-
vinced that public sentiment is rising
against the New Deal and. also, as
between q death sentence" and a
chance to live as granted in the
House bill they have no choice and
can offer no compromise.
Confident Bills Will Die.
Actually, however, the utilities are
making no effort at reconciliation,
being confident that the House and
Senate bills will die for this session.
For several days that has been the
word on Capitol Hill as to the probable
fate Of the measures. This is most
unfortunate from the viewpoint OF
the country. The House bill ought,
of course, to have been amended to
make it conform to the Constitution
in all its provisisions. but since it al
ready is In conference this cannot be
done, so the only alternative is to
have the Senate conferees accept the
House bill.
The House bill has been defended
by Representative Huddleston, Demo-
crat, OF Alabama, leader of the
House conferees, as in keeping with
the Democratic national platform Of
1882, which advocated regulation"
of holding companies and did not say
abolition"
The Senate by a margin of one
vote passed the death sentence"
so it would not be unprecedented for
the Senate to give in to the House
in order to make it possible to have
some legislation instead of none on
this very controversial question. But
the President controls the Senate
conferees.
Would Eliminate Evils.
Also. it is a fair statement of
what the House bill contains to say
that If 1t were held valid by the
Supreme Court it would effectually
rid the country of the EVIL features
of holding companies" as the term
was used by the President in his first
message to Congress. He did not
until later in the session insist on
abolition of holding companies, but
he did call for the extinction of "un-
necessary" holding companies, some
thing that cannot be determined con-
stitutionally by Federal commits
sion to which the power would be
delegated to say what Is and what
is not necessary because the Con-
gress itself has no right to order
holding company destruction in the
first place.
What the American people un-
doubtedly want Is an end to the
pyramiding by holding companies and
the manipulation through financial
wizardry Of the earnings of operating
companies. Also they desire the break
ing down of those elements OF
monopolistic control, whereby engi.
neering fees, financial fees and man.
agement and service charges are un.
reasonably fixed by holding companie,
by reason of their stock control Of
affiliated companies.
Regulations Are Necessary.
There is need, too, for legislation
regulating the flow Of electricity acros;
State lines and a tightening up OF
restrictions as they relate to the sale
of securities.
But If there is no legislation at this
session, who suffers? The investors
are entitled to know what Is going
to happen to their properties. Un-
certainly means economic loss. II GER
tain provisions of the House bill are
unconstitutional, the sooner the courts
adjudicate the matter the better it Is
for all concerned, including the regu-
latory bodies of the States and the
Federal Commission, which is to bt
vested with authority over utility prob
| lens Of an interstate character.
To let the two bills lie over til
next session means an opportunity ir
the interim for spectators and gam.
blers to manipulate the stocks anc
bonds Of holding companies and ever
operating companies to the disadvan-
tage Of innocent investors.
But apart from this the greatest OBJ
lection to an abandonment of the leg.
islation is that the utility industry can
not very well make plans for con-
struction or extensions with a SWORD
| of Damocles hanging over its head
And the country needs the employ.
ment which the utilities ordinarily
give. 1t has been estimated, for in.
stance, that 100000 of the unem.
ployed workmen today used to be en-.
gagged in what are known as the
heavy goods industries. In that grour
the utilities are large spenders anc
indirectly they are large employers
An expenditure Of $1,000, 10000 9
year is not unusual as an average fol
the utilities, which buy copper wire
motors and plant machinery and othel
raw materials directly related to bust.
ness recovery. Also, lower electric
light rates can be sought when prop.
erty extensions have increased con.
sumers.
Delay Serves No Good Purpose.
To postpone enactment of an i'm.
portant bill in order to try IL ont a.