The Omaha guide., 1935-04-06
PROTEST i TO
INCREASE COST OF
PUBLIC UTILITIES

wing various phases of the Rayburr
bill which he termed drastic, S. r
Inch, President of the Electric Bono
and Share Company called to the at.
tention Of the House Interstate and
Foreign Commerce Committee that nc
plan has been presented as a substi-
tute for the present loeally-regulated
privately-operated public utility sys-
tenn.
Certainly nothing so drastic as this
bill should be enacted into law, unless
and until those who would destroy
what now exists have prepared and
submitted a definite and workable plan
of procedure" Mr.. Inch said.
Effects of the Rayburn bill would
ultimately increase the costs of cleo
trio and gas service to the consumer
and by d~emoralizing local companies
would impair service, Mr.. Inch also
stated.
~ LdISC HullfDNI VI OROAoSA6
companies receiverships would inevita-
bly, follow the passage of this bill be-
cause necessary financing now OBJ
tanned from holding companies, would
not be forthcoming" said Mr.. Inch.
''This would result in general democrat
ization and would increase. costs to
electric and gas users for the simple
reason that it would increase the cost
of money necessary for continuance
and expansion of the utility business"
Mr.. Inch brought out that the cleo
trio and gas industries, if accorded
lair treatment and cooperation from
government, could be great leaders in
the drive for business recovery.
"The way back to prosperity is
through the re-establishment of bust
ness confidence which will permit pri-
vate tax-paying capital to go to work
again." he said.
"Then the next five years, instead
Of seeing the decentralization and de-
struction of these great industries as
private enterprises under this bill
would see them again engaged in con
structive expansion.
"The same five years instead of
bringing about the ruin Of millions Of
investors would bring recovery to
their investments and the restoration
of their income, from which new taxes
would accrue to government.
Mr.. Inch brought out that in 1880
these two industries spent more than
q billion dollars on construction alone
in an effort to help stem the depres-
sion.
"Our own associated companies are
now spending $25, OO0, 900 a year for
construction" said Mr.. Inch. "In nor
NAL years they spend a hundred mil
lion dollars a year. This is just an in
dication of what these industries mean
in the drive for business recovery.
During the depression years the
Electric Bond and Share Company
and its associated holding companies
invested $144, 0OO, 900 in building and
unifying two natural gas systems
This created employment for thous-
ands, with benefits to their communi-
ties and protected investors who would
have suffered severe losses unless we
had come o their aid.
"These developments represent rea.
and outstanding contributions to so.
cial stability and business recovery
during the worst years of the depres-
sion and they could not have been car
ried out and put into successful oper'
alton without the financial assistance
Of our company"
Mr.. Inch said that the money they
put into these projects is still in them
and he said, "the reward now Offered
to our stockholders is that their prop
erty shall be taken from them without
compensation"
The same can be said of their eff
forts to develop the foreign market
Mr.. Inch said.
eff this bill becomes a law, we mus
sacrifice $3.50, OO0, 900 we have invest
ed in foreign countries" he said. "Ou1
government which now would force u:
to get rid Of our foreign holdings
urged us to enter the foreign utility
| field as q means of creating closer
ties between the United States anC
various foreign countries and as 6
means of creating new markets fol-
American made goods"
Mr.. Inch warned that if his com
pany was forced to give up their for
eign investments, it would be acquired
by foreign interests, closing these i'm
portant markets to American people
Mr.. Inch brought out also that il
this bill is passed Investors generally
viii regard it as the first step toward
naturalization of the industry"
"Many believe that its purpose is T.
.aoornl;sh government ownership O,