Evening star., 1938-06-07
DOUGLASUT|L|TY
PROGRAM HAILED
Conferences Between SEC.
Chief and Executives
Held Good Sign.
BY the Associated Press.

ATLANTIC CITY, N. j.. June 7.--I
The conferences inaugurated recently
between William O. Douglas. chair
man Of the Securities and Exchange
Commission, and committee of util-
ity executives-designed to help along
the integration of holding systems
under the Utility Act OF 1935--were
described as a happy augury" for
the utility industry at the opening ses-
sion today of the annual meeting Of
the Edison Electric Institute.
In an address prepared for delivery,
9. W. Kellogg, president of the irfsti-
tute and chairman of the board of
Engineers Public Service Co.. said:
1T is. of course, too early yet for
any tangible result to emerge from
this cooperative effort. but confer
ences have begun and the gesture it
self should be Of happy augury for
our industry.
New Attitude Praised.
"One of the principal things the
utilities have suffered from in recent
years has been punitive attitude
by the Federal Government. The re-
moval of this threat will help greatly
to enable the utilities to perform eff
GENTLY their essential public service
role in the life of the people, and
Chairman Douglas words and actions
indicate clear desire TO do Just
that
THE utilities may be counted upon
to meet this proffered cooperation
in the same spirit that prompted it."
Kellogg said "the attack on the
electric industry has been well-nigh
continuous" during the last decade,
beginning with the investigations of
the Federal Trade Commission in
1927.
Pointing to how the industry has
met Government attacks" the utility
executive continued.
From the beginning of 1927 to the
end OF 1887, the electric utility indus
try expended on construction to its
properties about s5,4oo,oO0, 900 and
brought electricity to about s,7So,ooo
new customers. 1t reduced its aver
age residence rate by about 26 cents
kilowatt hour, or 81 per cent, and
increased the average annual con-
sumption in the home by 365 kilo-
watt hours, or 85 per cent.
Farm Market Grows.
In the same period, the number
of electrified farms was increased by
$4,000, or 3o2 per cent"
The attacks" of the Government,
Kellogg said, were largely confined at
first Ito publicity statements about
the findings of the Federal Trade
Commission, but during recent years
the publicity has been reinforced by
huge cash subsidies from the Federal
Treasury. in the form of gifts of over
$3.50, 100000 to municipalities to COM
pete with their local utilities"
Actual seizure OF private utility
property by the Government, without
just compensation, would be instantly
recognized by the average citizen as
contrary to constitutional rights"
Kellogg added. The public did not
at first recognize. although I believe
it is coming to do so, that de-
structive competition, through tax
supported subsidy, has the same ef-
feet as actual seizure. ~
Until this realization became gen.
eral public opinion, the only defense
the companies had was to strive to
do continually better, more efficient
and more economical job in service
to the people. What the public thinks
about our performance is best evi-
denced by their votes. You will re-
call in this connection that analysis
of the 22.63800o votes cast in $40
local elections during the last five
years on the subject of municipal
ownership shows the per cent of votes
favoring municipal ownership to have
dropped from 70.5 per cent in 1888
to 1l.s per cent in 1887"