The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-06-24
The Book World

IF the United States last effort to bring about
i successful regulation of utilities-the holding
company bill-fails to accomplish its purpose,
then a concentrated drive for public ownership
may be expected. .
A forerunner of this is DR.. John Bauer's
book, Americas Struggle for Electrical Power
League for Industrial Democracy. DR.. Bauer
thinks regulation is foredoomed to failure and
that public ownership is the only solution OF
the many problems concerned with electric
power.
IF any promiseful revision (of regulatloD is
made" he SAYS "the companies will promptly
proceed to undermine it, to render it nugatory
and to convert it into a protective device Tor
themselves. This appears quite inevitable IN the
situation of huge capital investment in public
function.
There is a grave doubt whether the indus
try as a whole can be left under private organ
ization and management and then SubJectoG
successfully to standards of public control, con-
tinuously directed to public objectives, without
subversive interference by the companies. The
alternative of direct public ownership and oper
alton furnishes the more hopeful organization"
AS one of the advantages which might be
expected from public ownership, DR.. Bauer sub
mits the following:
IF we pool all cities under public ownership
and all under private, we will find that in 1882,
private plants charged % per cent more for
domeSJlc service imam olQ puolc pldnIS; 90 per
cent more for commercial service, and about
100 per cent more for street lighting Only in
the case of sale of power at wholesale for in
dustrial purposes was there a Slight difference
in favor of private plants"
IF we want to make home owners secure in
1 their homes, we must not rely on mortgage
market reforms contemplated in the Federal
Housing Act says Frank Watson, former acting
general counsel for the Federal Housing Admin
istration. now an RFC attorney.
Mr.. Watson sets forth his idea Of an alter
native in Housing Problems and Possibilities
in the United States" (FIarper & Bros).
He agrees with the Housing Administration
that nothing much can be done to make the
home owner secure and to induce other citizens
20 build homes until a ready market for mort
cages can be maintained through the nation so
that local lenders will not need to foreclose in
time of depression, thus flooding the market
with distress properties and reducing the value
of all real estate.
But he thinks national mortgage associa-
tions. provided for in the Housing Act, can not
be depended on to do the job for 10 or II years
at least, until the investing public has had time
10 gain confidence in their debentures.
Clear thinking indicates the advisability Of
creating mortgage discount bank where mort
gage credit may be converted into cash for
short periods Of time to allay panic desires for
currency in place of deposit claims or other less
tangible forms of wealth" says Mr.. Watson
Mr.. Watson airs another point of view I'M
usual in a New Dealer He strongly disapproves
Of slum-clearance or low-cost housing schemes.
The social implications of the government
subsidized honeycomb type of structure so often
proposed should also be recognized" he says.
The apartment house type of living is not
conducive to satisfactory family life. This. plus
the fact that it is provided at government ex-
pense tends to undermine the social response
bility Of the individual occupants and create in
them feeling that the rest Of society owes
them certain obligations d. The housing
projects of Vienna certainly the most advanced
of all experiments of this type should furnish
ample proof of the social consequences follow
| ing this procedure"