Evening star., 1938-11-23
|U.S.Connpetition
Is Assai|ed
By Wi||kie
Utilities Executive Says
Construction Program
Is Being Menoced
BY the Associated Press.

BY the Associated Press.
Wendell L. Willkie, the utility ex-
ecutive, declared today the threat Of
Government competition menaced a
utility construction program in
volving hundreds of millions of dol
lars.
Unless this is removed, the head
OF commonwealth & Southern
Corp estimated. utilities will spend
less than s400,00O,OOO this year on
construction and $500 ZOO, 900 in each
OF the next two years-despite the
national defense program for ex-
panded power facilities.
Mr.. Willkie gave his estimate to
the congressional committee in
Vestlgating the Tennessee Valley
Authority.
On October 49, another utility
executive, Floyd L. Carlisle of the
Consolidated Edison Co., announced
that utility executives had agreed
on the first step of a power ex-
pansion program envisioning the
spending of $2,O00,O0OOOO in the
next two years.
This expansion was to help meet
what military experts had described
as a possibility Of a power short
age in event of wartime drain on
present facilities.
Says Investor Is Afraid.
Mr.. Willkie described the utility
as one which more than any other
can stimulate the flow of capital
and the unemployment of men,
Utilities are not spending more, he
said, because "the investor is afraid
OF what the Government intends
to do with the utilities. He will re-
main afraid as long as the basic
problem of subsidized Federal COM
petition is unsolved."
He said expansion in the utility
industry would take thousands of
men off the relief rolls and add
them to pay rolls reduce the
national tax burden electrify
the security markets. giving the in
vestor new confidence and promote
the life-giving flow of capital to all
forms of industrial enterprise.
1T is my personal belief that the
T. v. A. should go out of the power
business and confine itself to its
functions of flood control, naviga-
ton and soil conservation"
There is "log jam in the utility
industry" Mr.. Willkie said, at
tributing it to the 1T. v. A.-P. w. A.
combination threat to destroy the
private utility companies"
Mr.. Willkie also asked the in
vestigating group to submit to the
Securities and Exchange Commis-
sion deadlock between his corpora
ton and T. v. A. over sale of pri-
vate utility properties to T. v. A.
Has Right to Inform Public.
Before Mr.. Willkie testified
another utility leader told the COM
mittee that any large industry had
a right to keep the public informed
of its activities.
Bernard F. Weadock, vice presi-
dent of the Edison Electric Institute,
made this statement after Francis
Biddle, committee counsel, ques-
toned him about propaganda in
connection with the utility trade
association.
Mr.. Biddle asked the utility leader
if the Edison Electric Institute was
spiritual successor" to the old Ma
tional Electric Light Association.
The committee counsel asserted
that N. E. L. A. dissolved as a result
of a Federal Trade Commission in
vestigation disclosing it had many
college professors and educators ION
the pay rolls"
Exaggerations Claimed.
Mr.. Weadock, who said he was
managing director of the former as
sociation, said it dissolved as "a re-
suit of exaggerations rather than
facts and denied that professors
were on its pay roll.
The educators, Mr.. Weadock as
serted, received compensation for
attending technical conventions
Mr.. Biddle asked If the new trade
group dealt with Government
ownership from the educational
standpoint"
II object to use of the word edu-
cational," Mr.. Weadock said
How about propaganda" Mr..
Biddle asked.
Il have no aversion to propaganda
as such," the witness replied. ANY
industry in public service business
such as ours has a perfect right to
inform the-public in an open, above
board manner"