Evening Star Newspaper, November 26, 1934, Page 7

THE EVENING STAR, WASHINGTON, “ D. ¢, MONDAY, NOVEMBER 26, 1934 PONERINDUSTRY | ATTACKS UL . ACTS Electric Institute Brands In- vasion of Field and Plans Court War. By the Associated Press. NEW YORK, November 26—The | electric power industry, charging a “barrage of attack” is leveled agnmst‘ It by “various Federal agencies,” has declared war on the administration’s power program. Planning to fight in the courts, the Edison Electric Institute—an as- sociation representing 80 per cent of the National's electric power inter- ests—authorized its executives to take steps necessary to determine ether there are limits under the Constitution beyond which Govern- ment may not go in using public funds to destroy by competitive construction and operating the existing investments of private capital.” | Thomas N. McCarter, president of the institute and head of the Public Service Corp. of New Jersey, said in announcing the move yesterday that the Tennessee Valley project, foremost Federal power development. has been found “palpably unconstitutional” in & legal opinion by Newton D. Baker of Cleveland and James M. Beck of Philadelphia. Baker, Secretary of War during the Wilson administration, and Beck, former solicitor general and Repre- sentative, were painted by McCarter as “constitutional lawyers of national reputation.” Lillienthal Makes Reply. The declaration of war brought a prompt retort from David E. Lillien- thal, director of tie Tennessee Val- ley Authority. “The mask is off,” said Lillienthal in a statement at Knoxville, Tenn “The few men in New York City who through the holding companies control the electricity supply of 130.- 000.000 people have stepped from be- hind the ‘widows and orphans,’ the preferred stockholders, the ice men and the coal men, and are now speak- ing in their own behalf. “We now have, in the open, a clear issue between the people who use electricity and those who have controlled it.” The Electric Institute’s Board of Trustees acted on November 15, three days after President Roosevelt made public a survey by the power author- ity of the State of New York, which asserted that rates based on a pro- posed “yardstick” would save con- sumers in Northeastern States as much as 40 per cent of their electric bills. McCarter’s announcement came after the President’s statement that communities in every State in the Union would follow the example of Tupelo, Miss., first to contract for electricity from a Federal develop- ment McCarter accused agencies of “forcing sales” properties and concluded I hope to have an early opportu- nity to lay this whole matter before the President.” The institute’s head said he had asked Baker and Beck for opinions on “some four or five basic problems.” ‘The T. V. A. finding was requested first, he explained. Government of utility Activities Termed Illegal. Counsels report on the T. A. V. A,, McCarter said. “is a lengthy and con- vincing opinion, buttressed by a wealth of citation from decisions of the United States Supreme Court. It holds in substance that the legislation relating to this project and the plan of gov- ernmental action set up therein are palpably unconstitutional; that the legislation. if valid, does not authorize much that has either been done by the authority or that it is preparing to do. which is therefore illegal, and that the co-operative actions of the Tennessee Valley Authority and the Public Works Administration forcing . sales of property of private utilities under threat of gifts and loans to municipalities are illegal.” Outstanding power projects of the administration are the T. V. A, the Bonneville Dam on the Columbia River and the Grand Coulee Dam on the upper Columbia. Mr. Roosevelt has inspected all three, the T. V. A. while en route to Warm Springs, Ga., where he is at present. Speaking on his latest tour, the President criticized *obstructionists, few in number in comparison with the whole population.” who, he said, were making every effort “to block and harass and to delay this great national progra THRILL THE FOLKS BY GOING HOME FOR Thouksgivied ROUND TRIP FARES 1/3 REDUCED practically anywhere in the v . East and Middle West - - Leave anytime from 3:00 A. M. ‘Wednesday, November 28, to and Including noon Sunday, December 2. Return limit Monday, December 3. For details consult any B & O Ticker Agent or phone District 3300 — National 7370 CITY NEWS IN BRIEF. TODAY. Bingo and card party. benefit Naomi Rebekah Lodge No. 1, 25 Seaton place northeast, 8 pm. Bingo party, Masonic Temple, Eighth and F streets northeast, 8:30 pm. Card party and dance, Notre Dame de Namur Alumnae Association, May- flower Hotel, 8 p.m. Dinner dance, Delta Alpha Sorority, Shoreham Hotel, 8 p.m. Card party, benefit Ladies of Char- ity, St. Ann's Orphan Asylum, 2300 K street, 8:30 p.m. TOMORROW. Dinner dance, Phi Sigma Tau Sorority, Shoreham Hotel, 8 p.m. Lecture, Prof. F. L. Coonan, Wash- ington Chapter of the American So- ciety for Metals, 725 Twenty-first street, 7:30 p.m. Dance and card party, benefit St. Ann’'s Church, Willard Hotel, 8:30 p.m. Budapest Buys Ancient Oak. BUDAPEST (®.—An oak _tree thought to be 1500 years old, has been bought by Budapest University for experimental purposes. 20 tons. NEW WHITE HOUSE OFFICES FINISHED Painters Are Putting Final Touches on President’s Suite. Completely remodeled, and greatly enlarged to more than twice its former | interior space, the White House ex- ecutive offices today reopened for busi- ness. While the President's private office | one which all Chief Executives since has not yet been entirely finished, this ‘ the former Roosevelt had occupied, morning painters were busy putting on finishing touches, the President’s office furnishings, in great disarray had been brought into the room over the week end, and stood about in no semblence of the order they soon will assume. Headed by Stephen T. Early, one of the President's secretaries, the White House staff was settling itself into its new quarters, and was sufficiently comfortable to transact necessary bus- It weighs | iness. The staff, during the 100 days needed to remodel the offices, had been iocated in both the White House itself and in the executive offices in the old State, War and Navy Building across the street. Occupancy of new offices put an end today to the double shift, both day and night, under which the White House staff had been operating in their temporary restricted quarters. The new White House offices, al- though providing more than twice the space of the old, were constructed under designs which do not throw the offices out of harmony with the original structure. The office space was increased from 15,000 square feet to about 40,000 square feet, giving greatly enlarged offices for the clerical staff. The color scheme throughout is light gray green, including the Presi- dent’s office. In Roosevelt's spacious office, which is larger than the old there were his familiar furnishings and favorite novelties from the office, including the Democr: donkey and models of five ships. ic, Fashions Hurt Workers. Because Dame Fashion refuses to include lace in its program, lace makers of Calais, France, are suffer- ing and report that they can get no encouragement from Paris. $3/in & memorandum drawn up for| CHARACTER LOANS INSURANCE URGED Capital Extensions Held Not Necessarily Based Upon Collateral. By the Associated Press, Suggesting that chaeracter rather| than a rigid adherence to collateral | requirements be emphasized, admin- istration economic advisers yesterday study proposed a broad-scale Gov- ernment insurance of private loans. The memorandum held that, by | using the principles back of the| housing program, employment could be encouraged by stimulating private | credit in many lines of endeavor. | An agency similar in many re- spects to the Housing Administration was specifically proposed to be set up to insure loans to industry !or‘ plant modernization. It held that if men were good| managers and able to put funds to work honestly and economically they were deserving of capital on eco- | nomic grounds, regardless of the paper assets they might have. Advocates of the plan ergued that it would require more time and thought to use this agency than to depend upon mass expenditures such as public works, but that the result would be more permanent. The memorandum said a bill adapting to plant modernization the same principles underlying the hous- ing progrsm mulfl be drawn up in It Your Dentist Hurts You Try Plate Expert Double ~<—a- Suction Tight Fit In Awmy Mouth or I refund Your Money. Violet Ray Treatments for Pyorrhea. Extractions...-81 & 82 Also Gas PLATES $10 to 835 Gola Cro 5 up Flllings DR. FIELD 406 7th St. N.W. MELt. 9256 Over Woolworth 8 & 10¢ Store 3w Announcz’ng virtually the same terms as was the | housing act. The possibility of fitting interme- | diate credit banks into such a plan | was suggested, but it was added that a separate agency devoting its entire attention to a plant modernization campaign might speed up the loans | more than such banks. DON'T TAKE CAXATIVE ANY CHANCES COLD REMEDY WILL RELIEVE YOUR COLD WITHIN 24 HOURS ..... ULF NO-NOX ETHYL AVIATION GRADE GASOLINE with 6 points of superiority and at NO INCREASE IN COST F YOU wanted the very best motor fuel today that money could buy... 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