FEDERAL TRADE COMMISSION,
Washington, March 17, 1932.
To the Senate of the United States:

Pursuant to the direction of the Senate in Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928, regarding the investigation of certain classes of operating electric power and gas utility companies and holding companies, and associated, engineering, finance, management, and construction companies, that the commission “report to the Senate within each 30 days after the passage of the resolution and finally on the completion of the investigation,” upon the matters specified in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this forty-first interim report covering the period from February 16 to March 15, 1932, inclusive, is respectfully submitted.

Public hearings were held February 16, 17, 18, 24, 25, and 26 and March 9, 10, and 11. The testimony and exhibits presented related to Tide Water Power Co. and Florida Power Corporation, both of the Insull group, and Nebraska Power Co. of the American Power & Light Co. of the Electric Bond & Share group.

The witnesses, all of the commission’s economic staff, except Mr. MacRae, were: Hugh MacRae, Wilmington, N. C., Aaron J. Hughes, {º W. Adams, Walter Meleen, Arthur E. Lundvall, Harry H. arter. They testified as to the following reports which were put into the record as exhibits:

• Report by Aaron J. Hughes on examination of accounts and records of Tide Water Power Co. (Exhibit 5030.)
• Report by Harry H. Carter on interstate transmission of electric energy by the Tide Water Power Co. (Exhibit 5031.)
• Report by Aaron J. Hughes on examination of accounts and records of Florida Corporation, with accompanying exhibits and appendices. (Exhibit 5032.)
• Report by Walter Meleen on examination of accounts and records of Nebraska Power Co., with accompanying exhibits and appendices. (Exhibit 5038.)
• Report by John W. Adams on properties and operations of Nebraska Power Co., with accompanying exhibits. (Exhibit 5034.)
• Report by Harry H. Carter on interstate transmission of electric energy by the Nebraska Power Co. in 1929–30. (Exhibit 5037.)

Since the last interim report, an accounting field examination was begun on an important holding company group owning electric and gas operating companies in 24 States. A field accounting examination was also begun on one operating company. Accountants’ reports were completed for five important electric and gas operating companies in three different holding company groups. These companies distribute electric energy in nine States. Field work was continued on 2 holding companies, 4 sub-holding companies, 2 securities companies, 1 servicing company, and 7 operating companies. The study of servicing and inter-corporate relations was continued on several holding company groups. Reports on interstate transmission of electric energy was completed on two operating companies. A field engineering inspection and study of operating efficiencies was completed on one group of operating companies in the South Atlantic and Gulf States.

Hearings will be resumed March 16 when reports and testimony relating to the New England Public Service Co., another Insull company, will be presented.

Transmitted herewith is the transcript of the testimony presented at the hearings from February 16 to March 15, 1932, of above witnesses (pp. 18953 to 19842, inclusive), together with exhibits introduced (Nos. 5017 to 5040, inclusive).

By direction of the commission. W. E. HUMPHREY, Chairman.

FEDERAL TRADE COMMISSION,
Washington, April 15, 1932.
To the Senate of the United States:

Pursuant to Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928, directing the investigation of certain classes of operating electric power and gas utility companies and holding companies, and associated engineering, finance, management, and construction companies, and directing that the commission “report to the Senate within each 30 days after the passage of the resolution and finally on the completion of the investigation,” upon the matters specified in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this forty-second interim report covering the period from March 16 to April 15, 1932, inclusive, is respectfully submitted.

Public hearings were held March 16, 17, 18, 22, 23, and 24, and April 5, 6, 7, 14, and 15, 1932. The testimony and exhibits presented related to

• New England Public Service Co.,
• Georgia Power & Light Co., and
• Florida Power Corporation of the Middle West Utilities group, and the
• Arkansas Power & Light Co. and Mississippi Power & Light Co. of the Electric Bond & Share group.

The witnesses were:

• Walter S. Wyman, president New England Public Service Co., Augusta, Me.
• Carroll N. Perkins, attorney, New England Public Service Co., Augusta, Me.
• F. H. Watson, chairman Property Owners League, Jonesboro, Ark.
• A. Z. Patterson, attorney, Arkansas-Missouri Power Co., Kansas City, Mo.
• Martin A. Brown, Wilmington, Vt., who testified concerning New England Power Association and the Deerfield Co.
• Henry C. Spurr, editor in chief, Public Utilities Reports (Inc.), Rochester, N. Y.; and
• A. S. Hills, Washington, D. C., general manager, Public Utilities Reports (Inc.), who testified concerning Public Utilities Reports and Public Utilities Fortnightly.

And the following from the commission’s legal and economic staff:

• Frank Buckingham,
• William T. Chantland,
• Judson C. Dickerman, Charles R. Taylor,
• Aaron J. Hughes,
• J. Butler Walsh,
• A. M. Mc Dermott,
• Walter Meleen,
• R. C. Dalrymple,
• W. B. Horne,
• Harry H. Carter,
• James G. Lanier,
• and Walter B.Wooden.

The following reports, concerning which testimony was presented, were put into the record as exhibits:

• Report by Frank Buckingham on accounts and records of New England Public Service Co. (Ex. 5041.)
• Report by Charles R. Taylor on examination of accounts and records of Arkansas Power & Light Co., with accompanying exhibits and appendixes. (Ex. 5077.)
• Report by Charles R. Taylor on examination of accounts and records of Mississippi Power & Light Co., with accompanying exhibits and appendixes. (Ex. 5080.)
• Report by Aaron J. Hughes on examination of accounts and records of Georgia Power & Light Co., with accompanying exhibits and appendixes.
• Report by J. C. Dickerman on properties and operations of Florida Power Corporation and Georgia Power & Light Co. (Ex. 5103.)
• Report by Harry H. Carter on interstate transmission of electric energy by New England Public Service Co. system. (Ex. 5075.)
• Report by James G. Lanier on inter-corporate relations of the Arkansas Power & Light Co. and Mississippi Power & Light Co. with other companies in the Electric Power & Light group. (Ex. 5076.)
• Report by Harry H. Carter on interstate transmission of electric energy by Arkansas Power & Light Co., Louisiana Power & Light Co., and Mississippi Power & Light Co. (Ex. 5082.)
• Report by Harry H. Carter on interstate transmission of electric energy by the Arkansas-Missouri Power Co., 1929 and 1930. (Ex. 5091—A.)
• Report by Harry H. Carter on interstate transmission of electric energy by the Florida Power Corporation and Georgia Power & Light Co., 1929 and 1930. (Ex. 5098.)

Since the last interim report accounting reports were completed on four important operating companies, and another accounting report covering the engineering, management, securities, and construction activities of an important holding company group was also finished. An engineer’s report on properties and operations of the Florida Power Corporation and Georgia Power & Light Co., of the Insull group, was written and placed in the record at public hearings. A report on the transmission of electric energy across State lines by a large holding company was completed. The field accounting examination was continued on 4 holding companies, 3 sub-holding companies, 4 operating companies, and 2 securities companies. The field accounting work was completed on two operating companies and on one sub-holding company.

Hearings are scheduled to be resumed April 26. At that time it is expected that testimony will be presented touching the Northern States Power Co. and Minneapolis General Electric Co., both of the Standard Gas & Electric Co. group.

Transmitted herewith is the transcript of the testimony presented at the hearings from March 16 to April 15, 1932, of above witnesses (pp. 19843 to 21001, inclusive), together with exhibits introduced (Nos. 5041 to 5122, inclusive).

By direction of the commission. W. E. HUMPHREY, Chairman.

FEDERAL TRADE COMMISSION,
Washington, May 16, 1932.
To the Senate of the United States:

Pursuant to Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928, directing the investigation of certain classes of operating electric power and gas utility companies and holding companies, and associated engineering, finance, management, and construction companies, and directing that the commission “report to the Senate within each 30 days after the passage of the resolution and finally on the completion of the investigation,” upon the matters specified in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this forty third interim report covering the period from April 16 to May 15, 1932, inclusive, is respectfully submitted.

Public hearings were held April 21, 26, 27, 28, and 29 and May 3, 4, 5, 6, and 10, 1932. The testimony and exhibits presented related to Northern States Power Co. and Minneapolis General Electric Co. and their subsidiaries, all of the Standard Gas & Electric Co. and to Louisiana Power & Light Co. of the Electric Bond & Share Co. group.

The witnesses, all members of the commission’s staff, were R. K. Ogle, Calvin C. Davis, Charles R. Taylor, Judson C. Dickerman, T. W. Mitchell, Kenneth A. Miller, James G. Lanier, Harry H. Carter, and A. M. McDermott. They testify as to matters covered by the following reports, which were put into the record as exhibits:

• Report by R. K. Ogle on examination of accounts and records of Northern States Power Co. (Exhibits 5132, 5133.)
• Report by J. C. Dickerman on organization, physical properties, and Operations of Northern States Power Co. (Delaware) and subsidiaries (subsidiary of Standard Gas & Electric Co.), with accompanying exhibits. (Exhibit 5130.)
• Reports by Harry H. Carter on interstate transmission of electrical energy and gas by Northern States Power Co. system. (Exhibits 5129 and 5135.)
• Report by C. C. Davis on examination of accounts and records of Minneapolis General Electric Co. and subsidiaries, with accompanying exhibits. (Exhibit 5136.)
• Report by C. R. Taylor on examination of accounts and records of Louisiana & Light Co. with accompanying exhibits and appendices. (Exhibit 5138)
• Report by James G. Lanier on inter-corporate relations of the Louisiana Power & Light Co. with other companies in the Electric Power & Light Corporation group. (Exhibit 5141.)

Since the last interim report, an accountant’s report on a sub-holding company in a large holding company group was completed and another accountant’s report on Louisiana Power & Light Co., an important operating subsidiary of Electric Power & Light, Corporation in the Electric Bond & Share Co. group was finished and placed in the record at public hearings. A report on interrelations of Louisiana Power & Light Co. was also completed and placed in the record and another report on this subject on a large operating and sub-holding company was also finished. A report on interstate transmission of electric energy and manufactured gas for Northern States Power Co. was completed and placed in the record at public hearings, and another report on the interstate transmission .# electric energy and manufactured gas for a large operating and holding company was finished.

The field accounting examination was continued on 4 holding companies, 3 sub-holding companies, 1 securities company, and 1 operating company. The field accounting work was completed on one security company and three operating companies.

An accounting examination was begun on one operating subsidiary in a .holding company group, and on a construction company in another large holding company Hearings are scheduled to be resumed May.18, at which time testimony will be presented concerning Central Illinois Public Service Co., a large operating subsidiary of Middle West Utilities Co. in the Insull group.

Transmitted with is the transcript of the testimony presented at the hearings from April 16 to May 15, 1932, of the above witnesses pp. 21002 to 21900, inclusive), together with exhibits introduced (5123 to 5141, inclusive).

By direction of the commission: W. E. HUMPHREY, Chairman.

FEDERAL TRADE COMMISSION,
Washington, June 15, 1932.
To the Senate of the United States:

Pursuant to Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928, directing the investigation of certain classes of operating electric power gas utility companies and holding companies, and associated engineering, finance, management, and construction companies, and directing that the commission “report to the Senate within each 30 days after the passage of the resolution and finally on the completion of the investigation,” upon the matters specified in the resolution, and that it transmit therewith the stenographic report of the evidence, taken, this forty-fourth interim report covering the period from May 16, 1932, to June 15, 1932, inclusive, is respectfully submitted.

Public hearings were held May 18, June 7, 8, 9, 10, and 14, 1932. The testimony and exhibits presented related to the financial structure, practices, and other phases of the Central Illinois Public Service Co., National Light, Heat & Power Co., Twin States Gas & Electric Co., and Tidewater Power Co., all of the Middle West (Insull) group, and to the inter-corporate relations of companies of the Middle West utilities (Insull) group.

The witnesses, all members of the commission’s economic staff, were: Robert J. Ryder, Frank Buckingham, Melbourne C. Steele, Judson C. Dickerman, Harry H. Carter, W. B. Horne. They testified as to matters covered by the following reports, which were put into the record as exhibits:

• Report by Robert J. Ryder on examination of accounts and records of Central Illinois Public Service Co. (Middle West utilities group), with accompanying exhibits. (Ex. 5144.)
• Report by Frank Buckingham on examination of accounts and records of National Light, Heat & Power Co. (Middle West group), with accompanying exhibits and appendices. (Ex. 5145.)
• Report by Melbourne C. Steele on examination of accounts and records of Twin States Gas & Electric Co. (Middle West group), with accompanying exhibits and appendices. (Ex. 5146.)
• Report by Harry H. Carter on interstate transmission of electric energy by the Central Illinois Public Service Co. (Ex. 5142.)
• Report by Judson C. Dickerman on property and operations of Tidewater Power Co. (Ex. 5149.)
• Report by W. B. Horne on inter-corporate relations of 18 of the principal companies in the Insull group as of December 31, 1930, with chart. (Exs. 5151 and 5152.)
• Report by W. B. Horne on intercorporate relations of companies of the Middle West utilities group. (Ex. 5153.)

Since the last interim report, accountants’ reports and reports on interstate transmission of electric energy on associated Gas & Electric Co., Utah Power & Light Co., and its subsidiary, the Western Colorado Power Co., were completed. Accountants’ reports were also completed for National Light, Heat & Power Co. and the Twin States Gas & Electric Co. of the Insull group, and these were placed in the record on June 7 and 8, 1932, respectively.

An engineers’ report on the physical properties and operations of Tidewater Power Co. of the Insull group, was completed and placed in the record at public hearings on June 10, 1932. An engineer’s report on the physical properties and operations of Utah Power & Light Co., of the Electric Bond & Share Co., was completed.

The field accounting examination was continued on 4 holding companies, 3 sub-holding companies, 1 security company, and 2 operating companies.

On June 14 hearings began on the Associated Gas & Electric Co. and on June 15 hearings began on Utah Power & Light Co. an Western Colorado Power Co., both of the Electric Bond & Share group. All of these will be reported on and transcript with exhibits will accompany the next interim report.

Transmitted herewith is the transcript of the testimony presented at the hearings from May 18 to June 14, inclusive, 1932, of the above witnesses (pp. 21901 to 22533, inclusive), together with exhibits introduced (5142 to 5153, inclusive).

By direction of the commission. W. E.HUMPHREY, Chairman.

Federal Trade Commission,
Washington, July 15, 1932.
To the Senate of ‘the United States:

Pursuant to Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928, directing the investigation of certain classes of operating electric power and gas utility companies and holding companies, and associated engineering, finance, management, and construction companies, and directing that the commission ‘”report to the Senate within each 30 days after the passage of the resolution and finally on the completion of the investigation,” upon the matters specified in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this forty fifth interim report covering the period from June 15, 1932, to July  13. 1932. inclusive, is respectfully submitted.

Public hearings were held June 14, 15, 16. 17, 21, 22, 23, 24, 27, 28, 29. and 30. 1932, and July 1, 1932. Both on June 15 and 16 two sets of hearings were conducted, one hearing on Associated Gas & Electric Co. and one on the Utah Power & Light Co. and Western Colorado Power Co. The hearings on the Associated Gas & Electric Co. (top holding company of group) continued to July 1.

The witnesses, all members of the commission’s economic staff, were: Charles Nodder, A. A. Hartley, J. C. Dickerman, Hairy H. Carter, James G. Lanier. They testified as to matters covered by the following reports which were put into the record as exhibits :

• Report (two volumes with appendixes and exhibits) by Charles Nodder on examination of accounts and records of Associated Gas & Electric Co. (Exhibits Nos. 5156-5159.)
• Report by H. H. Carter on interstate transmission of electric energy by Associated Gas & Electric Co. System, with accompanying text tables. (Exhibit No. 5154.)
• Report by H. H. Carter on interstate transmission of gas by Associated Gas Electric system, with accompanying tables. ( Exhibit No. 5155. )
• Report (pt. 1) by A. A. Hartley and J. W. Adams on examination of accounts and records of Utah Power & Light Co. (subsidiary of Electric Power i Light Corporation of Electric Bond & Share group). (Exhibit No. 5164, said Exhibit No. 5165 contains the appendixes.)
• Report by A. A. Hartley and J. W. Adams on examination of accounts and records of Western Colorado Power Co. (subsidiary of Utah Power & Light Co, which is an operating and sub-holding subsidiary of Electric Power & Utah Corporation, of Electric Bond & Share Co. group). (Exhibit No. 5170.)
• Report by H. H. Carter on interstate transmission of electric energy by Utah Power & Light Co. and Western Colorado Power Co. 1029 and 1030. (Exhibit No. 5162.)
• Report by James G. Lanier on inter-corporate relations of the Utah Power & Light Co.. the Western Colorado Power Co., and the Utah Light & Traction Co. with other companies In the Electric Power & Light Corporation group, (Exhibit No. 5166.)
• Report by J. C. Dickerman on properties, organization, and operations of the Utah Power & Light Co. (Exhibit No. 5169.)

Since the last interim report, the field accounting examination was continued on 4 large holding companies, 11 sub-holding companies, and 23 operating companies. The field accounting work was completed on one sub-holding company and 15 operating companies. An accounting examination was begun on one sub-holding subsidiary and one operating subsidiary in a large holding company group. Examination of corporate records was begun on two operating companies and completed on one operating company. Accountants’ reports on 1 operating company of one large group and 2 operating companies of another large holding company group have been completed.

On July 1 adjournment was taken for the summer. No further interim report will be submitted until after hearings are resumed. In the meantime, field work and preparation of reports and other work for further hearings and work in assembling and digesting data in the record will continue.

Transmitted herewith is the transcript of the testimony at the hearings from June 14 to July 1, 1932, inclusive, of the witnesses (pp. 22535 to 24467 and “Utah, pp. 1 to 220,” inclusive), together with the exhibits introduced (Nos. 5154 to 5173, inclusive).

By direction of the commission. Charles H. March, Acting Chairman.

FEDERAL TRADE Commission,
Washington, October 15, 1932.
To the Senate of the United States:

Pursuant to Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928, directing the investigation of certain classes of operating electric power and gas utility companies and holding companies, and associated engineering, finance, management, and construction companies, and directing that the commission “report to the Senate within each 30 days after the passage of the resolution and finally on the completion of the investigation,” upon the matters .in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this forty-sixth interim report covering the period from July 15, 1932, to October 15, 1932, inclusive, is respectfully submitted.

Public hearings were resumed on September 13, 1932, and on September 13, 14, 15, 16, 19, 20, 21, 22, 23, 24, 27, 28, 29, 30, and October 4 and 5, 1932, hearings continued on companies of the Associated Gas & Electric Co. group as indicated below. The witnesses, all members of the commission’s economic staff, were: Charles Nodder, W. J. Warmack, John H. Crabtree, L. E. Kie?haber, O. C. Van Zandt. They testified as to matters covered by the following reports, which were put into the record as exhibits:

• Report by Charles Nodder on examination of accounts and records of Associated Properties (Inc.), (pt. 1) and Associated Electric Co. (pt. 2), with accompanying exhibits and appendices (Ex. 5174).
• Report by Charles Nodder and W. D. Mackeen. on examination of accounts and records of Associated Electric Cos., with accompanying exhibits and appendices (Ex. 5175).
• Report, exhibits, and appendices by Charles Nodder on examination of accounts and records of: Management Holding Corporation, Utility Management Corporation (Delaware),J. G. White Management Corporation, Consumers Construction Co., Associated Utilities  ising Co. (Inc.), Utilities Purchasing & Supply Corporation (Ex. 5176).
• Report by Charles Nodder on examination of accounts and records of New York Electric Co. (Ex. 5179).
• Report by W. J. Warmack on examination of accounts and records of New York State Electric Corporation, Eastern New York Electric & Gas Co., Lockport Light, Heat & Power Co., Western New York Gas & Electric Co., and Harlem Valley Electric Corporation, and exhibits and appendices (Exs. 5180–5181).
• Report by J. H. Crabtree on examination of accounts and records of Staten Island Edison
• Report by L. E. Kiefhaber on examination of accounts and records of Binghamton Light, Heat & Power Co., with accompanying exhibits and appendices (Ex. 5184).
• Report by H. H. Carter on interstate transmission of electric energy in 1929 and 1930 by Pennsylvania Electric Corporation group (Ex. 5187).
• Report by O. C. Van Zandt on examination of accounts and records of Pennsylvania Electric Corporation and certain subsidiaries, namely: Erie Lighting Co., West Virginia Light, Heat & Power Co., Youghiogheny Hydro-Electric Corporation (Ex. 5188). Exhibits to above report (Ex. 5189).
• Report by Charles Nodder and W. D. Mackeen on examination of accounts and records of Johnstown Fuel Supply Co. (Ex. 5190).
• Report and supplemental report by W. C Mackeen and Charles Nodder on examination of accounts and records of the Clarion River Power Co., with accompanying exhibits (Exs. 5191—5192).

Since the last interim report field accounting work was continued on 4 holding companies and on 1 sub-holding company. The field accounting work was completed on 5 sub-holding companies in 4 different holding company groups and on 22 operating companies in 3 holding company groups. An accounting examination was begun on 2 sub-holding companies, 1 operating company and on 1 securities company. The examination of corporate records was continued on operating companies in one large holding company group.

An engineer’s report on physical properties and operations of a large holding company group was completed. An inspection of the physical properties and operations of a large group was completed and the examination of another large group was begun.

The next hearings are scheduled to begin on October 18, 1932, when the Columbia Gas & Electric Co. group will be taken up. This is the first group reported on in which gas (manufactured and natural) and gas pipe lines constitute a predominant part of the group’s business.

Transmitted herewith is the transcript of the testimony taken at the hearings from September 13, to October 5, inclusive (pp. 24468 to 26267, inclusive), together with the exhibits introduced (Exs. 5173 to 5192, inclusive).

By direction of the commission. W. E. HUMPHREY, Chairman.

FEDERAL TRADE Commission,
Washington, November 15, 1932.
To the Senate of the United States:

Pursuant to Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928, directing the investigation of certain classes of operating, electric power and gas utility companies and holding companies, and associated engineering, finance, management, and construction companies, and directing that the commission “report to the Senate within each 30 days after the passage of the resolution and finally on the completion of the investigation,” upon the matters specified in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this forty-seventh interim report covering the period from October 16 to November 15, 1932, inclusive, is respectfully submitted.

Public hearings were held October 18, 19, 20, 21, 25, 26, 27, and 28, 1932, and November 1, 2, 4, 5, 10, 14, and 15, 1932, on the Columbia Gas & Electric Corporation and companies of that group, as indicated below. This is the first group reported on in this investigation in which gas (manufactured and natural) predominates over electricity.

The witnesses from the commission’s economic staff who testified were: Robert J. Ryder, Melvin S. Anderson, W. B. Horne, Harry H. Carter, and R. C. Dalrymple. Edward Reynolds, jr., executive vice president and secretary of the Columbia Gas & Electric Corporation, and an officer of many of the companies of the group, and Francis B. Flahive, treasurer of Columbia Gas & Electric Corporation, and an officer of many of the companies of the group, were also called and testified.

The commission’s witnesses testified as to matters covered by the following reports which were put into the record as exhibits:

• Report by R. J. Ryder on examination of accounts and records of Columbia Gas & Electric Corporation with accompanying exhibits. (Ex. 5193.)
• Report by R. J. Ryder on accounts and records of the Manufacturers Light & Heat Co. (Ex. 5215.)
• Report by M. S. Anderson on examination of accounts and records of Columbia Engineering and Management Corporation, Columbia Corporation, Columbia Securities Co., and Columbia Gas Construction Co. (Ex. 5201.)
• Report by M. S. Anderson on examination of accounts and records of the Union Gas & Electric Co. (Columbia system group), with accompanying exhibits. (Ex. 5202.)
• Report by W. B. Horne on inter-corporate relations of companies in the Columbia Gas & Electric group. (Ex. 5207.)
• Report by H. H. Carter on interstate transmission of electric energy by companies in the Columbia Gas & Electric Corporation system. (Ex. 5198.)
• Report by H. H. Carter on interstate transmission of gas by Columbia Gas & Electric Corporation system, 1930. (Ex. 5206.) Report  R. C. Dalrymple on supervision and servicing relations of Columbia Gas & Electric Corporation and “Columbia Engineering & Management Corporation, with accompanying exhibits. (Ex. 5209.)

Since the last interim report, field accounting work was continued on 4 holding companies, 4 sub-holding companies, 1 securities company, 1 construction company, and 4 operating companies. Accounting work was completed on one securities company and was begun on 1 sub-holding company and 2 operating companies. The examination of corporate records was continued on operating companies in one large holding company group. An inspection of the physical properties and operations of a large holding company group was continued.

Because of lack of money the Commission will be unable to examine several important groups coming within the terms of Senate Resolution 83 and to make as complete an examination as seems desirable of certain others which have been partially studied to date.

In the case of Federal Trade Commission against certain employees of Electric Bond & Share Co., now pending in the district court of the United States for the Southern District of New York, the entering of an order by the district court in accordance with the views expressed by Judge Knox in his opinions rendered in this suit has been postponed by agreement, each party reserving the right to have the settlement of the order taken up at any time before the court. In the meantime, pursuant to an agreement with the company, an accountant of the commission will begin an examination in the offices of the company of records and vouchers for the purpose of determining the cost to Electric Bond & Share Co. of rendering certain services to its subsidiary, affiliated, or associated companies in return for which a fee is paid, and for the purpose of learning other pertinent facts in connection therewith.

Hearings on New England Gas & Electric Association of the Associated Gas & Electric group are scheduled to begin on November 17.

Transmitted herewith is the transcript taken at the hearings from October 18 up to and including the hearings on the Manufacturers Light & Heat Co. concluded on November 15, all inclusive, (p. 26268 to 27867, inclusive), together with the exhibits introduced. (Exs. 5193 to 5216, inclusive.).

By direction of the commission. CHARLES H. MARCH, Acting Chairman.

Federal Trade Commission,
Washington, December 15, 1932.
To the Senate of the United States:
Pursuant to Senate Resolution 83, Seventieth Congress, first session,

approved February 15, 1928, directing the investigation of certain classes of operating electric power and gas utility companies and holding companies, and associated engineering, finance, management, and construction companies, and directing that the Commission “report to the Senate within each 30 days after the passage of the resolution and finally on the completion of the investigation,” upon the matters specified in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this forty-eighth interim report covering the period from November 16 to December 15, 1932, inclusive, is respectfully submitted.

Public hearings were held November 17, 18, 21, 22, 23, and December 6 to 9, inclusive, 1932, on New England Gas & Electric Association and Pennsylvania Electric Co. groups of the Associated Gas & Electric Co. group.

Members of the Commission’s economic staff who testified were:

Charles Nodder, Ossian C. Van Zandt, Harry H. Carter, and “William B. Home. Henry A. Stix, an employee of various H. C. Hopson companies, and F. H. Golding, president New England Gas & Electric Association, also testified. The Commission’s witnesses testified to matters covered by the reports which were put into the record as exhibits:

• Report and exhibits by O. C. Van Zandt on Examination of Accounts and Records of New England Gas & Electric Association and Certain Subsidiaries New England group. Associated Gas & Electric System). (Exs. 5218 and 5219).
• Report by H. H. Carter on Interstate Transmission of Electric Energy by New England Gas & Electric Association, 1929 and 1930. (Ex. 5217.)
• Report by Charles Nodder on Examination of Accounts and Records of Pennsylvania Electric Co. Group, of Associated Gas & Electric group, with accompanying exhibits and appendices. (Ex. 5231.)
• Report of H. H. Carter on Interstate Transmission of Electric Energy by Pennsylvania Electric Co. (Ex. 5233.)

Since the last interim report, field accounting work was continued on 4 holding companies, 4 sub-holding companies, 1 securities company, 1 construction company, and 3 operating companies. Accounting work was begun on one operating company, and on the operating expenses of a holding and servicing company, including its subsidiary construction company. An engineering inspection of the physical properties and operations of a large holding company group was completed. Since December 5 examiners have been in the offices of the Electric Bond & Share Co. investigating expenses for services for which fees ore collected.

Examinations of a number of companies are in progress, and a number of reports are practically ready to be put into the record. As stated in the report of November 15, 1932, indications are that examination of companies other than those now being examined and those on which reports are in the course of preparation cannot be made.

Hearings are scheduled to begin on December 19 on United Fuel Gas Co., Huntington Gas Co., and Cincinnati Gas Transportation Co., all of the Columbia Gas & Electric Co. group.

Transmitted herewith is the transcript of testimony taken at the hearings from November 17 to December 9, both inclusive (pp. 27868 to 28915, both inclusive), together with the exhibits introduced (5217 to 5235, both inclusive).

By direction of the Commission. W. E. Humphrey, Chairman.

Federal Trade Commission,
Washington, January 16, 1933.
To the Senate of the United States:

Pursuant to Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928, directing the investigation of certain classes of operating electric power and gas-utility companies and holding companies, and associated engineering, finance, management and construction companies, and directing that the Commission report to the Senate within each 30 days after the passage of
the resolution and finally on the completion of the investigation “, upon the matters specified in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this forty ninth interim report covering the period from December 16, 1932, to January 16, 1933, is respectfully submitted.

Public hearings were held December 19 to 23, 1932, both inclusive, on United Fuel Gas Co., Huntington Gas Co., and Cincinnati Gas Transportation Co., all of the Columbia Gas & Electric Corporation group.

The witnesses were Walter Meleen of the economic staff of the Commission and Edward Reynolds, Jr., executive vice president and secretary of the Columbia Gas & Electric Corporation and an officer of many of its subsidiaries.

Mr. Walter Meleen of the Commission’s staff testified to matters covered in the following reports by him, which were put into the record as exhibits :

• Report on examination of accounts and records of United Fuel Gas Co. with accompanying exhibits (exhibit 5236).
• Report on examination of accounts and records of Huntington Gas Co., with accompanying text tables and exhibits (exhibit 5238).
• Report on examination of accounts and records of Cincinnati Gas Transportation Co., with accompanying exhibits (exhibit 5239).

Since the last interim report, field accounting work was continued on 4 holding companies and on the operating expenses of another holding and servicing company. Field work was also continued on 6 sub-holding companies, 1 securities company, and 6 operating companies. Accounting work was begun on 2 sub-holding companies, 1 a gas sub-holding company, and the other an electric sub-holding company. The field accounting work was finished on a large holding company and on 1 construction company. Accounting reports were completed on 1 sub-holding company and on 2 operating companies.

Accountants’ reports were being written on 25 companies, and a report was being written on the physical properties and operations of a large holding company group.

The next hearing is scheduled to begin January 17 and will be on a report on the physical properties and operations of the North American Light & Power Co. and its operating companies.

At this time the last volume of reports to the Senate, which has been printed, is part 41, dated March 17, 1932, containing reports and testimony on Tide Water Power Co., Florida Power Corporation (of Insull group), and Nebraska Power Co. (of Electric Bond & Share group). Subsequent volumes are in various stages of printing, but their publication is now being held up, as the Commission is informed, because of lack of available Senate printing funds.

Transmitted herewith is the transcript of the testimony taken at the hearings from December 19 to 23, 1932, both inclusive (pp. 28916 to 29429, both inclusive), together with the exhibits introduced (nos. 5236 to 5239, both inclusive).

By direction of the Commission. Charles H. March, Chairman.

Federal Trade Commission,
Washington, February 15, 1933.
To the Senate of the United States:

Pursuant to Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928, directing the investigation of certain classes of operating electric power and gas utility companies and holding companies, and associated engineering, finance, management, and construction companies, and directing that the Commission ” report to the Senate within each 30 days after the passage of the resolution and finally on the completion of the investigation , upon the matters specified in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this fiftieth interim report, covering the period from January 16 to February 15, 1933, is respectfully submitted.

Public hearings were held January 17, 18, 19, 26, 27, 31, and February 1, 2, 3, 13, and 14, 1933. At the hearings reports and testimony based thereon were presented relating to the physical properties and operations of the North American Light & Power Co. Group, the Syracuse Lighting Co. (the first report on the Niagara Hudson Power Corporation group), the Metropolitan Edison Co. of the Associated Gas & Electric Co. group, and a number of re ports and supplemental reports on various companies of the Insull group.

The witnesses, all of the Commission’s economic staff, were Col. William H. England, J. W. Adams, LeClaire Hoover, Kenneth A. Miller, Carl H. Depue, Aaron J. Hughes, Lewis G. Prichard, William J. Warmack, and Harry H. Carter. The reports presented included the following:

• Report by J. W. Adams on properties and operations of the North American Light & Power Co. and its subsidiaries (Illinois Power & Light Corporation, Kewanee Public Service Co., the Western Illinois Ice Co., the United Power & Light Corporation (Kansas), Missouri Power & Light Co., the Kansas Power Co.), with accompanying text tables. (Exhibit 5241.)
• Report by Harry H. Carter on interstate transmission of gas by the North American Light & Power Co. system, 1930. (Exhibit 5247.)
• Report by Lewis G. Prichard on accounts and records of the Syracuse Lighting Co., Inc. (subsidiary of Mohawk Hudson Power Corporation of the Niagara Hudson Power Corporation group), with accompanying appendixes. (Exhibit 5249.)
• Report by Carl H. Depue on Insull Utility Investments, Inc. (based on auditor’s reports to receivers). (Exhibit 5251.)
• Report by Aaron J. Hughes on Middle West Utilities Co. (based on auditor’s report to receivers). (Exhibit 5256.)
• Report by Col. William H. England on National Electric Power Co. (based on auditor’s report to receivers). (Exhibit 5258.)
• Report by Col. William H. England on National Public Service Corporation (based on auditor’s report to receivers). (Exhibit 5259.)
• Report by William J. Warmack on examination of accounts and records of Metropolitan Edison Co. (Associated Gas & Electric group), with accompanying exhibits and appendixes. (Exhibits 5260 and 5261.)
• Report and supplemental report by J. W. Adams on Mississippi Valley Utilities Investment Co. (based on auditor’s report to receivers). (Exhibits 5262 and 5263.)
• Report by Col. William H. England on Corporation Securities Co. of Chicago (based on auditor’s report to receivers). (Exhibit 5264.)

Since the last interim report, field accounting work was continued on 2 holding companies, 3 sub-holding companies, 1 securities company, 6 operating companies, and on the operating expenses of another holding and servicing company. Accounting work was begun on one holding company. Field accounting work was completed on two holding companies. Accountants’ reports were being written on 29 companies, and a report was being written on the physical properties and operations of a large holding company group.

Hearings are now in progress on further reports of the Insull group, including one on Insull, Son & Co., Inc. Others are to follow.

The following is a list of groups and companies on which reports are now in course of preparation or of which field examinations are being made :

ASSOCIATED GAS & ELECTRIC GROUP

Associated Gas & Electric Securities Co.
Associated General Electric Corporation.
Associated Utilities Investing Corporation.
General Gas & Electric Co.
Barstow Securities Corporation (Delaware).
Barstow Securities Corporation (New York).
W. S. Barstow & Co. (New York).
W. S. Barstow & Co. (Delaware).
W. S. Barstow Management Association.

CITIES SERVICE CO. GROUP

Cities Service Co.
Arkansas-Louisiana Pipe Line Co.
Arkansas Natural Gas Corporation.
Cities Service Power & Light Co.
Cities Service Securities Co.
Gas Service Co.
Kansas City Gas Co.
Lakeside Construction Co.
Little Rock Gas & Fuel Co.
Public Service Co. of Colorado.
Public Utilities Corporation of Arkansas.
Reserve Natural Gas Co.
Southern Cities Distributing Co.

CENTRAL PUBLIC SERVICE CORPORATION GROUP

Central Public Service Corporation 1
Central Public Service Co.1
Central Gas & Electric Co.1
Federated Utilities, Inc.
Southern Cities Public Service Co.
ELECTRIC BOND & SHARE GROUP
Operating expenses, Electric Bond & Share Co.

INSULL GROUP

American Public Service Co.
Central Power & Light Co.
Cential & Southwest Utilities Co.
Corporation Securities Co. of Chicago.1
Insull, Son & Co., Inc.1
Midland United Co.
Midland Utilities Co.
Middle West Utilities Co. (Sept. 1930-Apr. Public 16, 1932).’ Service Co. of Oklahoma.
Public Service Trust.1
Seaboard Public Service Co.1
Second Utilities Syndicate1
Southwestern Gas & Electric Co.
Southwestern Light & Power Co.
Southwestern Securities Co.
Southwest L. E. Myers Co.
West Texas Utilities Co.

NIAGARA HUDSON POWER CORPORATION GROUP

Niagara Hudson Power Corporation.
Buffalo General Electric Co.
Buffalo Niagara & Eastern Power Corporation.
Central Hudson Gas & Electric Corporation. Frontier Corporation.
Hudson Valley Fuel Corporation.
Malone Light & Power Co.
Mowhawk Hudson Power Corporation.
New York Power & Light Corporation.
Niagara Electric Service Co. Niagara, Lockport & Ontario Power Co.
Northeastern Power Corporation.
Northern New York Power Corporation.
Northern New York Utilities, Inc.
Oswego River Power Corporation.
Peoples Gas & Electric Co. of Oswego.
Power Corporation of New York.
St. Lawrence County Utilities, Inc.
St. Lawrence Securities Co.
St. Lawrence Valley Power Corporation.
The Niagara Falls Power Co.
Union Bag & Paper Power Corporation.
Utica Gas & Electric Co.
1 In receivership or bankruptcy.

NORTH AMERICAN LIGHT & POWER CO. GROUP

Illinois Power & Light Corporation.
Illinois Traction Co.

STANDARD GAS  & ELECTRIC CO. GROUP

Byllesby Engineering & Management Corporation.

UNITED GAS IMPROVEMENT CO. GROUP

United Gas Improvement Co.
American Gas Co. of New Jersey.
Connecticut Electric Service Co.
Connecticut Electric Syndicate.
Philadelphia Electric Co.
Rockville-Willimantic Lighting Co.
The Connecticut Light & Power Co.
The Eastern Connecticut Power Co.
United Engineers & Constructors, Inc.

UTILITIES POWER & LIGHT CORPORATION GROUP

Utilities Power & Light Corporation.

UNITED CORPORATION GROUP

Corporate Interrelations. United Corporation.

With our present staff all these reports cannot be written and put into the record with accompanying testimony by July 1, 1933. Transmitted herewith is the transcript of the testimony at the hearings from January 17 to February 16, both inclusive (pp. 29,428 to 30,290, both inclusive), together with the exhibits introduced (nos. 5240 to 5264, both inclusive).

By direction of the Commission. Charles H. March, Chairman.

Note : In addition to the above, Exhibits 5265 to 5267, inclusive, being reports on Insull, Son and Co. Inc. and Public Service Trust, together with the testimony therein (pp. 30,291 to 30,451, inclusive) are printed herein.