Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1935-07-11
UTILITIES WIN IN HOUSE
PRESIDENTS WORST DEFEAT
POWER LOBBY ACTIVE
HOOVER NOT IN THE RACE
CONFUSION DELIGHTS CRITICS
ONLY A REVENUE RAISER
BARRING SUITS ON GOLD
VAULTS FOR BULLION
DEBT LARGER; COST LOWER
GOVERNMENT CREDIT SOUND

-
The house last week dealt q ma
jor political blow to the President IL
voting 25S to 157 against the "deatl
sentence" provision OF the HOLDING
company bill, although the member,
voted for the measure on final pass
age, 1928 to 81. The Senate's prOvis
ion, favored by the President, pass
ed the upper body by only M vote
1t directed that existing holding
companies cease to function as sucl
lby 1910. but authorized the Fedora
Power Commission to extend the lift
Of those not more than onc romOv
ed from operating companies fol
two years.
The more lenient provision Of the
House measure authorizes, but does
not direct, the commission to dis
solve the companies by 1910, and to
permit indefinite continuance OF any
lin the public interest," The Senate
would wipe them out by 1912. except
when the commission finds that con-
tinuance is necessary to an ecOn0n-
ically and geographically i~ntegrated
operating system.
.
That the issue thus framed will be
In the presidential campaign next
year is the opinion Of Senator Nor.
ris, and other Congressman. The
size and activity Of the power com
pany lobby caused ONE to remark
that the efforts OF the veterans, and
others, to influence legislation was
almost nothing In comparison. Es-
Inmates are that more than 500 util-
ity agents were active, with each
State represented by those able to
influence the local delegations. In
vestigations Of their activity will
probably be made by both Houses.
with inquiry also into threats of re-
prisal fby administration stalwarts
against recalcitrant Congressman.
The attitude OF the President Is
known. He is heart and soul be-
hind the Senate provision, feeling
keenly that the utility companies
have misrepresented the issue and
that they have played an evil part
in the politics Of the nation. In
fact, no specific reform has been as
insistently demanded by Mr.. Roose-
welt as the stringent regulation OF
the power companies. Whether he
| gets everything he asks or not 1t Is a
fact that his attitude has resulted In
many benefits to consumers all over
the nation. Power rates have been
reduced nearly everywhere as pres
sure has overwhelmed the cOmpan
les.
The victory OF the utility compan-
les in the House fight, however, does
no seem to he decisive. What the
House did was to leave their fate to
the Federal Power Commission and
what this body will do to them re-
mains to he seen. Once before me
famous power trust" won q great
victory but it turned out to be the
costliest on record. When The Sem
ate in 1927 voted to investigate the
industry the companies had the In
Quiry turned aver to the Federal
Trade commission, rather than the
Senate itself. The result was a six
year study OF ma~lpractices, which
created much OF the popular strength
behind the present demand for re-
forms.
The general idea is that Former
President Hoover will soon an
nounce that he will not seek the Re
publican nomination for President
next year, having arranged to remain
in private life, that his criticism OF
| administration policies was neces-
sary in the absence of virile leader
ship III Congress, that he will get
behind the nominee and that the par
ty chances of success are increasing
every day and would be enhanced ii
economic conditions and employ
ment do not improve much more
than now appears likely. Some pol
itical observers think that this at
titude leaves the way open for the
party convention, II it SO decides, to
select Mr.. Hoover as the most Wor-
thy opponent of the President, while,
at the same time. leaving the way
open for profitable party manoeuvT-
es.
Following a period OF bewllder-
ment, during which Congress hardly
knew what was expected in regards
to the new taxes proposed by the
President, the work of drafting a
measure to place higher levies on
wealth got under way last week In
more orderly procedure. The House
resenting Senate speed defended It's
proclaimed right to originate reven-
ue bills and its Ways and Means
committee will prepare the bill. How
long 1t will take is the question ask
ed by those who know that MAJOR
revenue bills usually require more
than three months to run the gaunt-
let In Congress.
Critics OF the President-and they
are vociferous today when he touch
es the po~cketbook nerve-tO0k de-
light In the apparent confusion that
existed. Apparently when his mes
sage went to Congress there was no
rush order" but when the Senate
Progressives demanded action an Of.
fort was made to tie the tax provis-
ions to the resolution to prolong the
nuisance taxes which had to be
passed within a week. With the
House aroused and outside cries for
hearings on the program. Mr.. Roo
sevet denied that he had dictated
the ~UuiCk,gteD saving he had hoen