Evening star., 1935-04-05
UTILITIES BODIES
SEELOSS OF POWER
Commissioners of IS States
and D. C. Against Wheeler
Rayburn Bill.

BY the Associated Press.
The contention that State power
would be "emasculated and devas-
tated" under the Wheeler -Rayburn
bill to abolish holding companies was
advanced today as utilities commits
sioners of As States and the District
of Columbia opposed parts OF the
measure.
"The burnt child fears the fire."
John e. Benton, general solicitor of
the National Association of Railroad
and Utilities Commissioners, added
before the House Interstate Commerce
Committee.
State Jurisdiction Reduced.
"Today we have seen State juris-
diction become not much more than
a shadow in the railroad field. The
State commissions do not wish to re-
peat that experience in the utility
field.
IN the enactment of this legisla-
ton, we ask the Congress not to break
down the regulation Of local service
and rates which is now provided under
State laws. This bill in its present
form would do this to a very large
extent"
He added that some provisions
would push Federal control over
local business, under the theory Of
regulating commerce between the
States, to an extent that is fantastic
in the extreme"
Lilienthal Is Quizzed.
David Lilienthal, Tennessee Valley
Authority director, went before the
committee yesterday to tell it elec-
tricity rates could be slashed probably
so per cent If utility holding COM
paries were abolished, as contemplated
in the bill.
Instead, he finished up Tending of
questions about the T. v. A. His rate
slash argument remained unread in
the brief he filed with the committee.
Both Republican and Democratic
members, who earlier had listened to
President Henry I. Hartman of the
Chamber of Commerce of the United
States oppose the bill, joined in the
rapid-fire examination of Lilienthal
concerning competition with private
utilities, propaganda" how far it is
going in selling electricity and Della
ware charters.
Wolverton Launches Quiz.
Before he had gotten fairly into his
prepared statement defending the
New Deal power venture against the
rubber yardStick" charges of utilities
nvoo.YfiHyoc rarocodiron him Pnnrncnnto -
tive Wolverton, Republican, of New
Jersey opened up on him with the
opinion that the T. v. A. was giving
chief importance ito the tail instead
of the head" by emphasizing the gen.
Grafton and sale of power instead OF
food control and navigation. Lilien-
thai disagreed.
Representative Pettengill. Democrat
of Indiana, followed through with
interrogation as to why high-head
dams were better than low-head for
food control and navigation.
Asks About Direct Sales.
Representative Kenney, Democrat,
of New Jersey wanted to know why
the T. v. A. undertook direct sales
to consumers. Lilienthal answered
that was in the same county where
''98 per cent OF the farmers had sat
10 years without service" with trans
mission lines OF private companies
running right through the valley.
Representative Cooper, Republican,
of Ohio read an article in an issue
of the National Education Association
Journal, written by Walter Myers,
suggesting T. v. A. activities in
schools. Lilienthal readily admitted
Myers was in T. " A. employe and
that $4,000 copies of the 15-page
article were bought by the authority.