Evening Star Newspaper, November 5, 1935, Page 15

NATURAL GAS QUIZ 15 URGED BY HOLT Senator Claims Those in Control Are Active in Politics. (Continued From F‘ourcgsnEh lfagi.l by the Columbia Gas and Electric Cor- poration and the Standard Oil Co. of New Jersey. Four lines are jointly owned by these two companies ex- tending from the Appalachian field to cities along the Eastern Seaboard and in addition to compact network of gas lines is operated in Western Penn- sylvania, West Virginia and Northern Kentucky with a line from this area effecting a connection with the line operated from the Texas panhandle gas fleld by the Panhandle Eastern Plpe Line Co. “That transportation of gas through pipe lines from one State to another {5 interstate commerce coming under the regulation of Congress is clearly settled in many decisions of the United States Supreme Court. “It is possible that the reason Con- gress specifically exempted gas pipe lines from regulation as common car- riers was that they were not of suffi- cient importance at the time to re- quire regulation. The growth of 111 | per cent in customers in the 10-year period 1921-31, and the increase of gas pine line transportation facilities to 60,000 miles, more than 50 per cent of which is under the mastery of four large corporations purchasing as well es producing natural gas, present a situation somewhat similar to that which preceded passage of the Hep- burn act as set forth in the pipe line cases, 234 U. 5., 548." Points to Local Situation. The 11 companies that control the | gas field, according to the report of | the Federal Trade Commission, are as | follows: The American Power and | Light Co., Columbia Gas and Electric Corporation, Cities Service Co. and | the Electric Power and Light Corpora- | tion, Lone Star Gas Co.. Minnesota | Northern Power Co., Middle West Utili- ties Co., North American Light and | Power Co. and Southwestern Develop- | ment Co., Standard Oil Co. of New Jersey and Tri-Utilities Corporation. May I be pardoned to point to a Jocal situation? West Virginia, my home State, produced much natural gas. Across our boundaries, we export between 60 to 64 per cent of the en- tire amount produced. The Standard Oil Co. of New Jersey and the Colum- bia Gas and Electric Co. have complete domination. There is developing and | has been developing a huge monopoly | that is taking away the God-given re- | source from the earth for the profits of only & few. Most of those few are | the absentee landlords who do not live where the gas is produced. Senator Couzens of Michigan introduced e resolution in the Senate of the United States in the last session in which it | was asked that the Committee on In- terstate Commerce obtain information | relative to the production, transmis- | sion, sale and distribution of natural | zas. We have, and properly so, brought to the attention of the public the huge Ppower octopus that invades most of the American homes, but let us not over- | look the very rapid development of an- | other public utility combine, the natural gas group. Many people feel that the industry is local in its nature. ‘That was s0 & few years ago, but to- day it is a Federal problem. It has risen to a place where it has enough | power to defy and to evade State regu- latory bodies. For years gas com- | investigate their activities. They try | about their activities. The employes | county who might be interested in | ducer. | in keeping down the tax burden on panies appeared before the courts say- ing that State regulation interfered with interstate commerce. Between | 1891 and 1934 there were 22 cases car- | ried to the Federal courts from In- diana, New Jersey, Oklahoma. Kansas, | New York, West Virginia, Pennsyl- | vania, Alabama, Wyoming, Ohio, Mis- | sissippi, Texas and Colorado on this ground. The interstate commerce de- cisions rendered forestalled much State | regulation and conservation. Declares Company Dodging. A few years ago the Legislature of my State passed a bill to place a tax upon gas being exported beyond the boundary. It was carried to the Su- preme Court of the United States, and there it was decided that the law inter- fered with interstate commerce. Now these same interests, this same group, this same company is trying to dodge Federal regulation by calling for State rights and State regulation. It is a Joint problem. Where the State does | not and cannot regulate, it should be the problem and responsibility of the Federal Government to step in. The Federal Trade Commission, under the very able counsel of Col. Chantland, will bring much information to the People of the United States about the natural-gas industry. ‘We have heard a whole lot, not too much, about the National Electric Light Association®and about the Edi- son Electric Institute, but what the N.E. L. A is to the electrical industry, the A. G. A, the American Gas Asso- ciation, is to the gas industry. These utilities, controlled through the 11 powerful holding companies mentioned earlier, contributed materially to the public utilities information bureaus of the different States and gave much for propaganda in behalf of the utilities. I speak from personal knowledge when I say that T know of no group, not even the power trust, that is more active in politics than those who con- trol the gas industry. They interest themselves in all elections, municipal, State and congressional. They try to WASHER 33 $1 A WEEK BUYS The two-tub washer and dryer is the safest, easiest and quickest way to wash and dry your clothes. 2 | session of Congress, of the gas companies quietly but ef- Assails SENATOR HOLT Of West Virginia, who last night demanded an inquiry into the "actmty of those who control” the natural gas industry. Gas THE EVENING STAR, WASHINGTON, The gas industry by decreasing the B. T. U. would naturally increase the conaumpfion because as the heat quantity declines, the amount used in- creases. It is similar to decreasing the number of pounds in a gallon. It has been estimated that this B. T. U. activity of the gas companies would have increased the final bill for. cooking and heating in America $490,000,000. The usual methods of suppression were brought about to keep this information from the public. Objected to Pamphlet. The Bureau of Standards in 1925 published a pamphlet which presented & mass of scientific data to the effect that the heating value of gas was in in inverse ratio to the volume con- sumed. The industry had endeavored either to prevent or modify the con- Interests D. C., clusions reached. In a letter dated August 29, 1934, referring to this proposed publication, Mr. Abell wrote Managing Director Forward, of the American Gas Association, describing a conference with the Bureau of Standards, and stating that he knew “that many members of the gas asso- ciation would not want to send out a report that would indicate that the charges for gas should be inversely proportional to the calorific value of as.” 8% e further expressed the belief that .| if the industry “watches its step with the bureau, the bureau will play the game our way as near as they know how.” A. Gordon King, service man- ager for the American Gas Associa- tion, in referring to the proposed pub- lication of the Bureau of Standards said: “The more I study this docu- ment the less value of good to any one I see in it, and if it were possible I believe it should be suppressed.” A letter was prepared for dispatch to the Bureau of Standards by the president of the American Gas Asso- —Star Staff Photo. | ciation stating the industry’s position control municipal officials so that the cities and towns will not have rate cases. They try to control the State officials in order that no public service commissioner will be appointed that would be so-called unfriendly or that no member of the Legislature be named who would introduce a bill | making pipe lines common carriers or | to control congressional elections be- cause they fear Federal regulation and oppose liberal legislation just as bit- terly as does the power trust. The same lobbyists who represent the | power companies in many instances are lobbyists for the gas companies. Propaganda in Schools. ‘They have and are interested in get- ting propaganda into our schools. I have with me a pamphlet that was placed by the gas industry in the public schools of West Virginia. They have their essay contests and lectures are called in before campaigns for safety meetings and just as important as the teaching of safety to life and limb to those who have called the meeting, is the safety of the political control that the gas industry asserts. You who are not from a State that produces natural gas may not realize to what extent this group extends its influences. They lease land from the farmers for the proposed drilling of wells. They will see the farmers and advise them that rentals will have to be reduced because of the activity of some man from that regulating the gas industry, telling them that it is highly advisable that someone else would be sent in place of a so-called “Red” or dangerous demagogue., Leases have been sur- rendered and rentals reduced to my own knowledge to exert the political control of the gas companies. Contracts call for the shifting of tax burdens to the independent pro- This not only has its value the gas companies but places them in a position whereby they can and do have the small independent producer in thelr lobby activities. In the :ast Tepresentatives fectively lobbied in opposition to the hclding company bill. Not only have | they Heen guilty of all these things but many more. They have had the power of finance to stave off any fight in the courts that might be raised by a municipality. One case recently decided by the Federal Court had been pending 10 years. They have become so powerful that a municipality can hardly compete with them. They have entwined them- selves through the control of holding companies to such extent that the State Commission finds them practi- cally impossible to regulate. They are not a lone state problem but as I said before, a national problem. ‘We find directors who are directors in the power companies and industrial groups so that influence can be used Only a few dem- onstrators at this attractive price. Come early. TOOMUCH | 'ACID MAY BE [WIIAT AILS YOU Makes You Tired, Pepless Too, much acid can more miserable and rotten ean ririe any " other one ‘thi makes vile gases. c | pains, " You don’ | what you eat. 1d ol some water with acidan in it several Pi excessive “azidity without " disturbine \tm. mach Juices. tathg OIS & coat. ng over raw. irritated m and helps stob the mmmm;'r"'n':':" lnd "Neld ingisestion and you up ndthr mornm: re!reshed lull fhest 5hd | at any dru | | | sumers. The term B. T. U,, or British and the minutes of a conference W's Hew! “CREAMED” RUBBING ALCOHOL Doesn’t dry out the skin Good news for people with dry, ten- der skins! Spry, the rubbing alcohol in cream form, soothes and softens the skin. Economical; can’t spill. Use it for —aches— pains —sore muscles—sprains—stiff joints —fever—tired feet—cuts— bruises—after shaving. Contains 70% absolute alcohol, U. 8. Govt. for the continuation and protection of this monopoly. In a .period of declining prices, all through the de- pression, we find that this monopoly had a constant increase in the price of gas. This did not go to the inde- pendent producer who sold it to them but was extra profit for the holding companies and to the favored few who might control this octopus. Just recently the Federal Trade Commission exposed the activity of the American Gas Association who aided in 8 movement to decrease the British Thermol Unit to the con- Thermol Unit, does not mean much to those who realize that it represents the direct heat value of gas itself. standard for rubbing aicohol compounds. i) e Add 2 sablespoonsful 10 " JAR Minute Cranberry Sauce fo plain 2 egg om- 2L 90 elet before folding. Serve with powe duoduqn.wnighlmkbool—- Americon Cranberry Exchange Dost. N—90 West Broadway, New York City & o N Eatmor Mantactyred © East 37th Street. New Yok Cis On Sale at all Drug Stores Cranberries TUESDAY, among the leaders of the industry stated that—"The purpose of this letter is to stop further publication and distribution of the bureau’s re- port and to lead up to a conference with the bureau at which an effort should be made to induce them to withdraw the copies of this publica~ tion already distributed.” You will find a feeling of co- operation between the electric and gas utilities. ‘The large holding com- panies have asserted electricity and gas. Gas and electricity, as every one knows, can be competitive, but if con- trolled through the same ownership, this competition, which would natu- rally bring decreased rates for the domestic consumer, would be done away with and that which would give the greatest profit companies. Firm Holdings Pyramided. ‘The same story of holding com- panies can be traced through those who operate the gas industry as that of electricity. The growth of capi- tal assets, intercompany transactions, high interest rates and the pyramiding of company upon company are all evident. For instance, when I was a member of the Legislature, I investi- gated the ownership of utilities. I found Kentucky-West Virginia Gas Co, owned by the Philadelphia-Louis- ville Gas and Electric Co., which in turn was controlled by the Philadel phia company, in turn by the Stand- ard Gas and Electric Co., which in turn was controlled by the Standard NOVEMBER 5, 1935 Power and Light Corp. and this jointly owned by the United States Electric Power Corp. and H. M. Byllsby and Co., and the holding company was United Founders Corp. May I also cite some intercompany transactions: ‘The United Fuel Gas Co. sold 2as to the Huntington Gas Corp. for 264 per cent. They in turn sold to Unioa Gas and Electric at 45 per cent and this company finally sold the product at 64.7 cents. Upon every transaction the Columbia Gas and Electric col- lected management fees, not on tke final prices but upon each of the transactions. I also would like to note how the United Fuel and Gas Co. shows an appreciation of $41,042,462 with the property valued at $98,500,- 000. It is the same problem and the same group of insiders collecting whether it be electricity or gas and the consumers footing the bill. Of course one must realize that vhe securities act and the Wheeler-Ray- burn bill would do much to correct this problem but we must be on our guard so that this combine will not develop to such an extent that it will be a burden on every consumer. This requires strict regulation of the gas pipe lines by the Federal Government. It is important that America know more about this industry and that a thorough investigation be made of the activity of those who control it. Power Projects. Turkey plans to develop electric power projects. 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