The Waterbury Democrat., 1937-11-17
F. D. R. Toys With Idea Of Govern m ent
 Purchase Of
 Power Control

Washington, Nov. 17-On recent day when many dispatches were re- porting that the president of the United States was thinking up ways and means to placate business, Roosevelt was toying with an idea which had little in common with such trend of thought.
 Perhaps nothing more will be heard about this, but the idea was that for about $500,000 000, the gov- ernment could buy control of the public utility industry in the United States.
 By "cOndemning" com m on
 stocks of holding companies at
 present market values, certain of
 his experts had told Roosevelt,
 that sum could be made to pur- chase control of more than $13,-
 OOO, 100000 of public utility value.
 And then the government could
 operate the electric power buSi-
 ness to suit itself.
 The president, furth rmore, seemed to think this bold move might be a good plan. But 1t may end in mere thinking. Congress would have to approve 1t and Roose- welt has troubles enough. But the presidents fondness for bold, spec tacular moves has not been damp ened by the fate of his court plan earlier this year.
 In JacksOn's Steps
 Possibly the scheme occurred to Roosevelt only as a threat to hold over public utility executives, who have complained that the public would not invest in public utility securities because of New Deal pow CT policies and who have said they would go ahead with billion-dol- lar expansion program if the presi- dent would soften his attitude.
 At any rate, the fact that
 Roosevelt should even be think
 ing of such thing is significant
 in it's indication of his present at
 titude in the face of business
 recession and loud demands from
 business for less reform.
 The president, according to some of his intimates, considers the pres ent situation somewhat analogous to the one 100 years ago when Ar- drew Jackson had his historic bat tie with the Bank of the United States and Nicholas Riddle pro- noted a panic to help the money power" discredit Jackson with the people. Roosevelt recently read the new biography of Jackson by Mar quis James.
 No Compromise
 The power front in the New Deals battle with economic royal ists" is the one on which Roosevelt never has weakened or compromised appreciably and power is the one field in which there is legalized monopoly-whose possibilities Of ex- ploitation have been demonstrated in past years. The power trust" and financial interests behind 1t are regarded by New Dealers as a spear head in the attack on the New Deal.
 New Dealers have been looking forward to public purchase of large private power companies and insist that some companies are anxious to cll out in certain areas, but at "watered prices" This lends signi- flcance to Roosevelt's recent re- marks about common law" or "prudent investment" valuations, 1n which the president, urged to say something nice to the utilities, heaved out with what amounted to 8 kick in the chin.
 Power Decisions Soon
 But the supreme court soon will have a lot to say about the power fight-and Roosevelt will have lot more to say about the supreme court if the decisions don't come his way.
 The Duke Power case, involving PWA's right to award l0an- grants
 for local public power plants, is
 about to be argued before the
 court. The holding company act,
 unanimously upheld by the Cir
 cult Court of Appeals in New
 York, will follow it. At Chatta-
 nOoga nearly g score power com
 panies, represented by 53 lawyers, are challenging TWAS c0nstitu-
 tionality in a suit which is ex-
 pected to be appealed directly to
 the Supreme Court at its present term.
 Each side stands to win or lose a great deal in these decisions, which will be coming along in the next few months.
 Copyright, 1897, NEA Service, Incl