The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1935-01-04


feet the reforms in financing that Mr..
Roosevelt has called for, and then re-
quested that the government join with
the institute In suit to test the con-
stitutionality of the Tennessee Valley
authority.
In the memorial he handed to the
President, Mr.. McCarter gave it as his
own opinion that the government in
the iva experiment Is exceeding its
constitutional powers and infringing
the sovereign rights Of the state. He
cited the joint opinion of Newton D..
Baker. Democrat, and James M. Beck,
Republican, that iva Is unconstitu.
tional and the similar conclusion" Of
Unietd States Judge w. I. Grub in a
recent decision.
Mr.. Roosevelt turned the memorial
over to Frank r. McNinsh, chairman
of the federal power commission, and
he and his aids speedily prepared a
sharp reply rejecting the proposal Of
cooperation in carrying the matter to
the Supreme court.
I'm all the history of the American
people," 1t said, mo parallel for such a
proposal can be found. ;. The call
is not for the government to halt, but
for the industry to catch step and move
forward along progressive lines"
1.-The Edison Electric Institute has,
of course" it continued, "a legal right
to promote litigation to test the act
creating the Tennessee Valley Author
ity or any substantial progress toward
placing the industry on a sound and
permanent basis until 1t cleans its own
house. reduces excessive rates to con-
sumers and eliminates the malpractice
and abuses which are responsible for its
present condition"
Attacking McCarter's contention that
rates are reasonable, Mr.. McNinch said
Canadians pay on an average 2 Is
cents for kilowatt hour, while Ameri-
cans pay 51a cents. He said the Cana
dian figures cover public and private
plants, the latter supplying "46 per
cent Of the consumers"
at is the purpose of the admins
tration," he set forth, ito narrow this
excessive gap between what the con-
sumner pays for electricity in this coun-
try and what Canada has proved 1t can
be generated and sold for. This pro-
gram does not involve either 'destruc-
tive competition or strangulation'."
DR. HUGH s. MAGILL, president of
IL the American Federation Of Util-
:ty Investors, entered the utility con-
troversy with hot attack on the fed
eral trade commission. charging that
II Is throwing out a smoke screen to
befog the public mind In it's desire to
win approval for the entry of the fed
eral government into the electric light
and power business through such eff
forts as the Tennessee Valley Author
ity.
The smoke screen, he declared, was
the pronouncement of the commission
to the effect that public utility COM
panies had boosted pre-depression
prices in market In which investors
afterward lost millions Of dollars.
"The clamor for the government to
enter private enterprise" said Doctor
Magill. enjoys the sponsorship first
of the Communists who have no re-
gard for private property, second of
those Influenced by socialistic propa-
| ganda to believe that the production
| of electric power under government
ownership would be In the interest of
public welfare, and lastly Of the spoils-
men in politics who see the tremendous
opportunities such system would Of
fer for added power and political
spoils."