Evening star., 1939-08-01


The particular David Lawrence.
amendment to the lending bill
which was adopted concerned pro-
hibition of the possible use of
Federal funds to encourage NUM-
cipalitieS to borrow money to build
competing electric light and power
plants without taking into account
whether adequate service existed, or
whether the existing facilities could
be purchased on a reasonable basis
1t went further than a prohibition
against electric light competition
and struck out also against the pos
sible invasion of all private enter
prises by Government operations
Perhaps the most challenging
speech in many Weeks-at least
several Senators characterized it as
such-came from Senator O'Ma-
honey when he commented on an
attempt by Senator Norris of Ne
braska, public ownership advocate,
to defeat his amendment on the
ground it might give power COM
panies loophole for delay and liti-
cation. Said Mr.. OMahoney in
part:
80 I say to the Senate, stop all
this quibbling about what is going to
happen with S350,000,000 loan
fund, stop all quibbling about the
right Of some municipality to obtain
loan to build utility in competi-
ton with an existing utility. The
fight against abuses by corporate
power has been practically won. I
believe it has been completely won.
I believe that one of the great rea-
sons why the fight has been won is
because Senators like the dis
tinguished and able Senator from
Nebraska (Mr. Norris have been
willing to stand upon the floor of
this body and out on the stump to
wage fight for free private enter
prise.
Business Wants Signal.
Free private enterprise is en-
dangered not only by monopoly.
1t is also endangered by Govern
ment. My experience during the
past u months with the Temporary
National Economic Committee has
convinced me that 80 per cent of
all the business men in the United
States want only the opportunity
to go forward. I say give them the
signal by adopting this amend
ment."
The Senate followed Mr.. OMa-
honey's advice, but it was interest
ing to observe that the conservative
or independent Democrats earlier
had voted down a more extreme pro-
posal which would have prevented
any public funds from being bor-
rowed by municipalities seeking to
have their own electric power and
light plants.
This Is plain indication that the
Democrats who are called Con-
servatives" are not at all taking an
extreme or ultra conservative posi-
ton, and that the administration
might well have had in other votes
a substantial number of supporters
from the ranks of these Democrats.
The so-called rebellion in Congress,
whereby in recent days a coalition
of Democrats and Republicans has
been whiting away the administra-
tlon's measures, is by no means
Well-olled affair. 1t is spur of the
moment division based on distrust
to a certain extent of bureaucratic
power hitherto voted in blanket
form, and largely on the failure of
the administration to consult Demo-
cratic members of the Senate ir-
respective of faction.
Killed More Conservative Plan.
Had the conservative Democrats
been merely seeking to einbarrass
the administration they would have
voted for the extra amendment pro-
posed by Senator Danaher of Con-
necticut, which endeavored to put
the Senate on record against any
Government aid for all possible
competing enterprises. Mr.. OMa-
honey'S proposal with a provision
for a public hearing by the Federal
Works administrator and with other
restrictions seemed to embody
policy fair, on the one hand, to pri-
vate enterprise and, on the other,
to the municipalities desiring to
avail themselves of public borrow
ings. 1t was by no means what
might be called a retrogressive step,
for 1t puts into law what the Presi-
dent and his associates in the execu-
tive branch of the Government have
pledged informally, but which could
not serve as effectively as a legal
guarantee until Congress embodied
1t in formal statute.
The vote Of As to 25 does not by
any means reflect the pro and anti
sentiment on public ownership.
Among the votes cast against the
Danaher amendment were some Re-
publicans and Democrats who would
have preferred the more extreme
proposals and did not wish even by
indirection to seem to favor Federal
funds for competing plants to be
constructed by municipalities. On
the whole, the votes in the Senate
last Saturday show clearly that the
Senate believes the sentiment of the
country is drifting rapidly away
from allowing public funds to be
used to break down the system Of