Evening star., 1939-11-29

The utilities have plans for the ex-
pendlture of at least $1,000, 900 900
for the year 1941, as they are anxious
to build up gradually the necessary
extra facilities which would have
been built by this time If 1t had not
been for the political raid on the
utility business made by the authorl-
ties at Washington.
Investors who are to furnish the
needed funds are not altogether sure
that Washington has ceased hostil-
ties, for every now and then there
is sniping, which would indicate that
the radicals in the New Deal would
like to start utility-baiting again. In
the last few weeks there have been
evidences of return to that attl-
tude on the part of administrators
and Government agencies, and, in
deed, by New Deal members OF
Congress who In the past have been
in the forefront Of the utility con-
troversy.
A political raid on the utilities is
not difficult to recognize in its In
cipient stages. Public statements
are released seizing on technlcali-
ties, though nowadays the alleged
necessity of ruling the utilities from
a war emergency basis is empha-
sized.
Firms Conform to Law.
The utility companies have con-
formed to the Holding Company Act
and are working in close co-opera-
ton with the Securities and Ex-
change Commission: In fact. they
rarely take any important steps Of
a financing nature without consult
ing the commission in advance so
as to be sure that no laws are vio-
lated. But even this avails them
very little, evidently because sniping
starts just the same on Capitol Hill.
Originally-that is. in the last
few years-one attack more or less
has made little difference. But
today, as investors are considering
whether to allow their funds to be
loaned to utilities in bonds or in
vested in common stocks, 1t is of the
utmost Importance that assurance be
widespread concerning the sincerity
of the administration attitude.
Again and again President Roose-
welt has said in his press conferences
that the utilities have nothing to
fear, and when recently the T. v. A.
and the Commonwealth e. South
ern Power Co. settled their differ
ences, it was believed a truce had
really been established, so that the
Governments invasion of the pri-
vate utility business would be held
within the existing limits of the
large power projects already built
or being built by the Government.
Now, however, rumors are afloat
that the war emergency will be used
as a pretext to tackle the utility
problem again. The politicians want
Government ownership or control
quite naturally because it means
Offices for them and plenty Of
financial benefits for their friends.
There is an electric power de-
flciency today and it would be con-
siderable if the United States en-
tered the war, but it is shortage
which the private utilities could
meet promptly by interconnection
II the Government cared to let them
do so.
Jobs for 100000.
The coming utility expenditures Of
about $650,000,000 to $700000,000
mean an increase of at least 100,-
900 jobs for 1910, to say nothing OF
the indirect gains in employment
when vast quantities of raw ma
terials have to be moved by the
railroads and trucks of the country.
The fact that there is to be con-
siderable utility financing in the
coming months arises out of a be-
lief in the financial centers of the
country that the Government is
going to cease heckling the electric
power and light companies, which
now are regulated to the nth degree
by the most drastic kind of legisla-
ton. The only real issue has been
whether the Government would
spread it's ownership of facilities and
appropriate more public money to
build power projects.
The temper of Congress at the
last session was distinctly against
more governmental experiments in
the power business and it was the
attitude Of the majority in Congress
which brought about the present
upsurge in confidence concerning
the future of the utilities-a con-
fidence that can easily be impaired
If the public ownership devotees
once more start sniping at the