Evening star., 1937-11-23

years ago. On every side men are be-
ing thrown out of work because the
whole economic system is suffering
from the Roosevelt depression almost
As severely as it did from the Hoover
depression.
The possibility that the utilities
might have Government competition
Withdrawn so that they can borrow
money to build needed facilities has
been discussed informally here for the
last few weeks, but not until now has
there been any concrete step taken to-
ward the making Of a peace compact
between the utilities and business.
Backflash to 1885.
The basis of an adjustment of the
controversy would seem to be the same
as that which was outlined by this
correspondent two years ago. 1t is
interesting to reproduce what was
written then so that some IDEA may
be gained of how costly are political
delays and crusades that ignore the
public interest. Here is an excerpt
from the dispatch referred to, which
was dated December 9, 1885:
Peace between the utilities and the
Roosevelt administration could have
been made 10 months ago and the Ma
ton could have benefited by more en-
ployment and industrial activity
amounting to $500 100000
THE plan given to Mr.. Roosevelt Was
by no means the unanimous expression
of the utility men, but it was accepted
informally by more than 60 per cent
of the industry, and the chances are
that the diSsenters would have been
brought into line had the admniStra-
ton shown any evidence OF a willing
ness to adopt the proposals. These
provided:
First. the power industry would
accept the administrat tons theory
about lower electric light rates. and
the utility companies would agree to
file objective rates subject to the
approval of the Federal Power Com
mission.
Would Curb Loans to Cities.
"Second, If satisfactory rates were
established IN a given territory. the
Federal Government would declare
that there was no necessity for Federal
loans to municipalities therein.
Third, the Federal Government
would continue the development of
hydroelectric projects but would not
duplicate transmission lines or aid in
the duplication of municipal distribu-
ton facilities.
Fourth, the utilities would declare
IN nf % Of
law permitting reasonable regulation
OF holding companies, namely a law
that would cure all the past evils, such
as pyramided financing and interserv-
ice charges. etc.
Fifth, the utilities would agree to
spend $750,000,0O0 over and above last
years expenditures and would agree
on program for rural electrification.
Sixth, Nationwide appliance
commission would be appointed which
In view of the low objective rates
would agree on the manufacturing of
appliances on wholesale plan to elec-
trify America. Arrangements would
be made for something better than the
Electric Farm and Home Authority in
respect to long-term paper that could
be discounted at the banks"
Act Would Modify Plan.
The foregoing plan was welcomed
by some members of the Presidents
official family, but opposed by others.
The truth is the public ownership
school had the upper hand then and
didn't want peace with the utilities at
all. Today the holding company law
has been passed and various other
things have taken place which would
require modification of the original
peace proposals. Thus there is needed
a definition or amendment of the
Holding Company Act so that the
country would know what is meant by
geographically integrated" systems of
public utilities.
This correspondent wrote also on
December 9, 1885:
Even If the plan was rejected last