The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-04-20
Kerr Bill Veto Is First Moior
Setback For SpecioI Interests

Washington (LPA) = The first
major set back to the forces of
special business privilege in this
session of Congress was dealt when
President Truman vetoed the Kerr
latural gas bill, April Is.
His veto, which Congress prob
lbly won't override, was accom-
soanied by an explanation that it is
n the public interest to allow the
federal Power Commission to con-
,inue to regulate sales of gas to
interstate pipelines. FPC thus had
n its hands the power to prevent
1r to slow down a projected $780,
100000 to $500,000,O00 a year in
.rease in bills for household and in
lustrial consumers Of natural gas.
Truman's veto took special cour-
lge. 1t could ALLEVIATE some Of the
biggest contributors to the Demo-
ratio campaigns in November's
elections. The Presidents own
party was split on the bill. Speaker
Sam Rayburn Cd, Tex led the
light for the bill in the House, and
Majority Leader Scott Lucas ID,
s.ll) absented himself during the
crucial vote on the bill in the Sen
tie. More Republicans than Demo-
rats voted against the bill in the
Senate, and the House vote was
extremely close, with practically all
# the rebellious southern wing of
he Democrats voting for the bill.
On the other hand, city consum-
ers of gas, especially union mem
1ers and their wives and industrial
Isers-and the mayors Of the cities
Effected set up a tremendous bar
age of messages to the President
lrging a veto. The labor publica-
ions and AFL radio commentator
frank Edwards didn't give up hope
when the bill was passed, and kept
The public informed as chances for
l veto improved. Most Of the big
:ity dailies, by the time that the
bill had been on the Presidents
lesk for a week or so, had gotten
around to editorial-page requests
FOR a veto. Few of the dailies, how
ever, except for the st. Louis Post
Dispatch and the Louisville Cour-
,er-Journal, carried any detailed
lccount of the Congressional de-
oates that spelled out the issues.
Sen. Paul Douglas Cd, Ill., is
being given the credit for almost
organizing and
sparkling the Senate debate which,
over a period of several weeks,
spelled out the issues clearly. Rep.
Robert Crosser Cd, Ohio did the
same in the much more limited de-
bate allowed in the House.
Douglas pointed cut that theI
Kerr bill would not only exempt
producers and gatherers from regu-
alton, but that the gas produced
by the pipe lines themselves would
also pass out from under regula-
ion. He showed that the price ofl
natural gas had almost doubled inl
i've years, that contract prices all
ways go up and never down, that
he demand is so great that pro-
lucers can charge exhorbitant
prices; that the Kerr bill would
make rich oil men richer still. Hell
estimated the potential profit to
he producers at 50 to SIS billions,
md would be gravy for the bigl
'oys and not the small independ-
nts". He showed that their 1947l
'rofits averaged "a per cent after
axes, some earnings going to 40
'er cent.
"The very nature of the way gas
S distributed makes it a public
tility and a natural monopoly like
he telephones and electricity, |
,here competition cannot regulate
he price, he said. The Kerr bill
'ould "carry away the purchasing
over of the many to enrich the
ew', he added.
The gas bill veto left the oil men
18th. an anticipated so per cent
atting average in this session of
ongress. Still untouched are the
Decial tax privileges enjoyed byI 7
lie oil companies in the form of
depletion allowances" {
The oil companies, as other busi- {
asses, are allowed to deduct all t
leir business expenses, before cal
llating their taxes. Then they can l
so deduct any expenses involved |
developing new wells. OtherI
lsiness men are not allowed to 7
educt such expenses, as they areI
capital investments and
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