FEDERAL TRADE COMMISSION,
Washington, January 15, 1934.
To the Senate of the United States:
LINK TO VOLUME 61

A public hearing was held December 20, 1933, when further testimony was offered concerning legal expenditures of the Lexington Water Power Co., and certain exhibits were put into the record relating to publications and activities of the National Electric Light Association from March 1928 to the winding up of its affairs early in 1933.

The witnesses were: Ralph D. Jennison, president; J. M. Costello, treasurer, of the Lexington Power Co. and Broad River Power Co.

The reports and exhibits put into the record were:

• Lexington Water Power Co.: Analysis of legal expenses charged to operating expense for the year 1931 (exhibit 5563).
• Proceedings of Fifty-fifth Convention of National Electric Light Association, 1932 (exhibit 5564).
• Rate books: National Electric Light Association, 1931 and 1932 (exhibits 5565 and 5566).
• National Electric Light Association: Statistical Bulletins No. 7 and No. 8, June 1931 and June 1932 (exhibits 5567 and 5.568).
• National Electric Light Association: The Electric Light and Power Industry in the United States, with Bibliography of Public Utility References and Supplement, revised to January 1, 1931 (exhibits 5569 and 5570).
• National Electric Light Association : Pamphlet entitled “Suggested Program for Educational Meetings, as Originally Prepared and Used by Public Relations Department of the Middle West Utilities Co.”, 1930 (exhibit 5571).
• National Electric Light Association : Pamphlet entitled “Training for Better Public Contact—Its Necessity and Importance; Serial Report of the Industrial Relations Committee, 1927–28, Public Relations National Section ”, May 1929 and April 1929 (exhibits 5572 and 5573).
• National Electric Light Association : Pamphlet, reprint, of part of an address entitled “Private or Government Ownership of I’llolic Utilities”, by A. H. Markwart, vice pres’ dent, Pacific Gas & Electric Co., San Francisco, Calif., September 25, 1929 (exhibit 5574).
• National Electric Light Association: Southwestern Geographic Division— pamphlet (April 1932), entitled, “Research in the Southwest” (exhibit 5575).
• Letter, April 6, 1933, from Robert E. Healy (F.T.C.), to B. P. Weadock, executive secretary Edison Electric Institute, requesting to be advised of number of copies printed and on hand of certain National Electric Light Association publications, and reply thereto (exhibit 5576).
• Mimeograph copy of article entitled ” General Review of Performance of Electric Light and Power Companies for the Year 1930, and Some Estimates for Next Year”, by Paul S. Clapp, managing director National Electric Light Association (exhibit 5577).
• National Electric Light Association: Statements of income and expenditures for fiscal years June 30, 1928, to 1932, Inclusive (exhibit 5578).
• Statement showing payments made by National Electric Light Association to universities, colleges, and schools, July 1928 to January 1933, inclusive (exhibit 5579).
• Statement showing payments made by National Electric Light Association educators, July 11, 1928, to February 2, 1933, inclusive (exhibit 5580).
• Statement showing payments made by National Electric Light Association to the World Power Conference, August i, 1929, to June 1933, Inclusive (exhibit 5581).
• Statement showing payments made by National Electric Light Association to National Industrial Conference Board, September 18, 1928, to October 28, 1932, Inclusive (exhibit 5582).
• Statement of payments made by National Electric Light Association to National Retail Dry Goods Association, April 22, 1931, to March 22, 1933, inclusive (exhibit 5583).
• Statement showing payments made by National Electric Light Association to Committee on Relation of Electricity to Agriculture, August 7, 192S, to February 3, 1933, inclusive (exhibit 5584).
• Statement showing payments made by National Electric Light Association to Society for Electrical Development, January 14, 1929, to February 20, 1933, inclusive (exhibit 5585).
• Statement showing payments made by National Electric Light Association to Association of Edison Illuminating Cos., April 3, 1931, to January 1933, inclusive (exhibit 5586).
• Statement showing payments made by National Electric Light Association to Lord, Thomas & Logan, June 20, 1928, to March 15, 1933, inclusive (exhibit 5587).
• Statement (two sheets) showing payments made by National Electric Light Association to S. S. Wyer and Chester T. Crowell, October 28, 1930, February 16, 1931, and September 1, 1931 (exhibit 5588).
• Statement showing payments made by National Electric Light Association to General Federation of Women’s Clubs, October 15, 1928, January 19, 1929, and September 11, 1929 (exhibit 5589).
• Statement showing payments made by National Electric Light Association to Joint Committee of National Utility Association from September 4, 1928, to June 19, 1931, inclusive (exhibit 5590).
• Statement showing payments made by National Electric Light Association to American Farm Bureau Federation, Chicago, 111., April 25, 1930, to January 12, 1932. inclusive (exhibit 5591).
• Statement showing payments made by National Electric Light Association to F. G. R. Gordon, 1929-32, February 6, 1930, to September 11, 1931, inclusive (exhibit 5592).
• Statement (11 sheets) showing payments made by National Electric Light Association to various geographic divisions, July 1928 to February 1933, Inclusive (exhibit 5593).
• Statement showing payments made by National Electric Light Association to National Rural Electric Project, College Park, Md., July 1928 to January H. 1932, inclusive (exhibit 5594).
• National Electric Light Association: Photostatic copies of selected vouchers, showing payments, items of publicity, etc., July 14, 1928, to November 10, 1932, inclusive (exhibit 5595).
• National Electric Light Association : Extracts from minutes of Public Policy Committee, June 29, 1928, to June 9, 1932, inclusive (exhibit 5596).
• Copy of pamphlet of Middle West Utilities Co., printed in 1927, entitled “Manual of Organization and Policies” (exhibit 5597).

Since the last interim report field work was continued on 3 important holding company groups and on 4 subsidiaries of one of the groups and on 6 of the other, on 8 investment or securities companies and on a finance corporation.

The examination of the accounts and records of the operating expenses of an important holding company was completed.

The preparation of accounting reports was continued on a large holding company, on 2 sub-holding companies, 2 securities companies and their affiliated companies, and on 8 operating companies. Engineering reports were continued on 2 holding-company groups.

Hearings will be resumed on January 16, when a further report on the Iowa properties of the North American Light & Power Co. group will be presented and a supplemental report on a certain contract between Columbia Gas & Electric Corporation and Hope Engineering Co., and its associates, and other material and testimony will also be presented. A supplemental report on operating expenses of the Electric Bond & Share Co. will be presented on January 18.

Transmitted herewith is the transcript of testimony of the hearing of December 20, 1933 (37776 to 37866, inclusive), together with the exhibits introduced as above described (exhibits 5563–5597, inclusive).

By direction of the Commission: GARLAND S. FERGUSON, Jr., Chairman.

Pursuant to Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928, directing the investigation of certain classes of holding and operating electric and gas 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 ”, and upon the matters specified in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this sixty-first interim report covering the period from December 16, 1933, to January 15, 1934, inclusive, is respectfully submitted.

Federal Trade Commission,
Washington, February 16, 1934.
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 holding and operating electric and gas 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 “, and upon the matters specified in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this sixty-second interim report covering the period from January 16, 1934, to February 15, 1934, inclusive, is respectfully submitted.

Public hearings were held January 16, 17, 18, 24, 25, and February 1, 2, 3, 5, 7, 12, 14. The reports and testimony presented related to the following groups and companies :

• North American Light & Power Co. (supplemental report).
• Electric Bond & Share Co. (supplemental report).
• Natural Gas Pipeline Co. of America (formerly Continental Construction Corporation).
• Texoma Natural Gas Co.
• Chicago District Pipeline Co. (formerly Will Cook Construction Co.).
• Middle West Utilities Co. (supplemental report re common officers and directors).
• Central & Southwest Utilities Co. and subsidiaries (Middle West Utilities group).
• Malone Light & Power Co.,
• Buffalo General Electric Co., of the Niagara Hudson Power Corporation group.

The witnesses were:

G. A. Stephens, J. W. Adams, Kenneth A. Miller, Walter Meleen, Frank Buckingham, Carl H. Depue, Arthur L. Lyddane, Melbourne C. Steele, Lewis G. Prichard, W. B. Home, Harry H. Carter, A. M. McDermott, E. M. Schwartz, all members of the Commission’s staff;

• W. D. Gale, assistant treasurer, North American Light & Power Co. ;
• Clarence Earl McBride, auditor Electric Bond & Share Co. ;
• H. M. Lytle. vice president Chicago Rapid Transit Co. ;
• John Prentice, assistant cashier Chase National Bank.

The reports and exhibits put into the record were :

• Memorandum by G. A. Stephens in re agreement of October 30, 1930, between Hope Engineering Co. and associates and Columbia Gas & Electric Corporation. (Exhibit 5598.)
• Supplemental report by J. W. Adams on North American Light & Power Co., with exhibits. (Exhibit 5599.)
• Letter of the chief counsel and statement of cash items charged to management expenses by North American Light & Power Co. (Exhibit 5601.)
• Supplemental report by Walter Meleen on operating expenses and cost of service of Electric Bond & Share Co., together with tables and exhibits.(Exhibit 5602.)
• Letter, dated January 4, 1934, from Lewis E. Pierson, New York, N.Y., addressed to Robert E. Healy, chief counsel, Federal Trade Commission, regarding activities of committee on industrial cooperation. (Exhibit 5603.)
• Report of Frank Buckingham (Federal Trade Commission) on examination of accounts and records of Natural Gas Pipeline Co. of America (formerly Continental Construction Corporation), with exhibits and appendixes. (Exhibit 5604.)
• Report of Frank Buckingham (Federal Trade Commission) on examination of accounts and records of Texoma Natural Gas Co., with exhibits and appendixes. (Exhibit 5605.)
• Map showing pipe line running from gas fields around Amarillo, Tex., to Joliet, 111., Natural Gas Pipeline Co. of America. (Exhibit 5606.)
• Report of Frank Buckingham (Federal Trade Commission) on examination of accounts and records of Chicago District Pipeline Co. (formerly Will Cook Construction Co.), with exhibits and appendixes. (Exhibit 5607.)
• Statement showing price paid by Texoma Natural Gas Co. for acreage acquired by participants prior to August 1, 1929. (Exhibit 5608-A.)
• Condensed corporate chart of Middle West Utilities Co. showing Central & Southwest Utilities Co. and subsidiaries, as of December 31, 1930. (Exhibit 5608-B.)
• Report of the W. B. Home (Federal Trade Commission) on inter-corporate relations of companies in the Central & Southwest Utilities subgroup of the Middle West Utilities group. (Exhibit 5609.)
• Supplemental report by W. B. Home (Federal Trade Commission) showing connections of officers and directors of Middle West Utilities Co. with companies not shown in a report formerly submitted by him. (Exhibit 5610.)
• Map of territory served by Central & Southwest Utilities group. (Exhibit 5611.)
• Report by Carl H. Depue (Federal Trade Commission) on examination of accounts and records of Central & Southwest Utilities Co. and subsidiaries, with accompanying exhibits and appendixes. (Exhibit 5612.)
• Annual report for 1932 of Central & Southwest Utilities Co. (Exhibit 5613.)
• Letters and statements re expenditures of companies of Middle West Utilities group on account of expenses of Foreign Language Newspaper Service. (Exhibits 5614-5620, inclusive.)
• Report of Lewis G. Prichard (Federal Trade Commission) on examination of the accounts and records of Malone Light & Power Co. (subsidiary of the Power & Electric Securities Corporation) —Niagara Hudson Power Corporation group — with accompanying tables and appendixes. (Exhibit 5622.)
• Memorandum, Harry H. Carter, International Movement of Energy on Transmission Lines of Ontario & Minnesota Power Co. and Minnesota & Ontario Paper Co. (Exhibit 5623.)
• Statement, Post Office Department, Knoxville Journal (Knoxville, Tenn.), April 1, 1929. (Exhibit 5624.)
• Statement, Post Office Department, Knoxville, Journal, Knoxville, Tenn., October 1, 1932. (Exhibit 5625.)
• Statement, Post Office Department, Commercial Appeal, Memphis, Tenn., October 1, 1933. (Exhibit 5626.)
• Extracts of minutes of first meeting of board of directors, Southern Publishers, Inc., held at Nashville, Tenn., May 10, 1927. (Exhibit 5627.)
• Nashville Trust Co., Trustee, et al., v. Southern Publishers, Inc., et al., copy of orders of chancery couit, Davidson County, Tenn. (Exhibit 5628.)
• Certified copy of certain paragraphs of petition of receivers of the Minnesota & Ontario Paper Co., to the court for instructions (U.S. District Court of Minnesota, Fourth Division), Wirt Wilson & Co., v. Minnesota & Ontario Paper Co. (Equity Case 1950). (Exhibit 5629.)
• Report by Arthur L. Lyddane on examination of accounts and records of the Buffalo General Electric Co., of the Niagara-Hudson group. (Exhibit 5631.)
• Report of Harry H. Carter on interstate transmission of electric energy by Niagara Hudson Power Corporation system. (Exhibit 5632.)
• Report by Melbourne C. Steele on examination of accounts and records of Niagara Falls Power Co., of the Niagara Hudson group. (Exhibit 5633.)

•Printed In Part 63.

Since the last interim report field work was continued on 3 important holding company groups, 1 of the groups including 6 sub-holding companies, 3 operating companies, and 5 non-operating companies. Examination of 8 investment or securities companies of an important group was continued, and of an operating company of another group.

The examination of the accounts and records of 3 operating companies, including the largest generator and wholesale distributor of hydroelectric energy in the United States, as well as a report on interstate transmission of electric energy in that same group was completed. On 1 large sub-holding company and on its inter-corporate relations, and on 3 natural gas companies, reports were completed and are among those listed above as having been put into the record since last report.

Field accounting examination of 2 important holding company groups, including a subsidiary of 1 group, was begun.

The preparation of accounting reports was continued on 2 sub-holding companies of a large group, on 1 securities company of another group, and on 1 operating company. The preparation of engineering reports was also continued on 2 holding company groups.

Hearings are now in progress on Niagara Falls Power Co., and will be printed in this volume. The next hearing is scheduled for February 20, when matters relating to the Central Public Service Co. will be put into the record.

Transmitted herewith is the transcript of testimony of the hearings of January 16 to February 14, 1934 (37867 to 38609, both inclusive), together with the exhibits introduced as above described. (Exhibits 5598-5633, both inclusive.)

By direction of the Commission. Garland S. Ferguson, Jr., Chairman.

FEDERAL TRADE COMMISSION,
Washington, March 16, 1934.
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 holding and operating electric and gas 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 ”, and upon the matters specified in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this sixty-third interim report covering the period from February 16, 1934, to March 15, 1934, inclusive, is respectfully submitted.

Public hearings were held February 16, 17, 19, and 21, and March 1, 2, 6, 7, and 8.

The reports and testimony presented related to the following groups and companies: Niagara Falls Power Co.; New York Power & Light Corporation; Adirondack Realty Holding Corporation; all of the Niagara-Hudson group; Central Public Service Corporation; Albert E. Peirce & Co.; New England Public Service Co.; Broad River Power Co.; Tri-Utilities Corporation; Utilities Power & Light group; Cities Service Co. system; Southern Sierras Power Co.

The witnesses were Melbourne C. Steele, Lewis C. Prichard, W. B. Horne, Harry H. Carter, C. T. Sadler, all members of the Commission’s staff; William Milnes Maloy, attorney, Baltimore, Md.; Robert J. Ryder, accountant, Washington, D.C.; Mark M. Rose, director, Imperial Irrigation District, El Centro, Calif.

The reports and exhibits put into the record were:

• Letter, February 23, 1934, re purchase and disposal of Hortonia Power Co. (Exhibit 5630–A.)
• Supplemental statement by George Otis Spencer, treasurer, New England Public Service Co. (Exhibit 5630–H.)
• Memorandum by Clarence H. Ross, attorney re Central Public Service Corporation. (Exhibit 5635.)
• Letter, William Milnes Maloy, attorney, re Maryland law relating to certain corporate powers. (Exhibit 5636.)
• Statement by R. J. Ryder, accountant, re memorandum by Clarence H. Ross, supra. (Exhibit 5637.)
• Data in re securities of Central Public Service Corporation before and after its reorganization. (Exhibit 5638.)
• Central Public Service Corporation, statement of dividends paid October 1, 1925, to June 30, 1931, by Public Service Engineering Co. (Exhibit 5639.)
• Comparative balance sheet of Central Public Service Corporation as of December 31, 1931, and October 31, 1932. (Exhibit 5640.)
• Certified copies of complaint, order, and finding by Charles M. Thomas, Public Utilities Commissioner of Oregon, re Central Public Service Corporation.
• Pamphlets and circular letters issued by Albert E. Peirce & Co. and Central Public Service Corporation touching investments in their securities. (Exhibits 5642 to 6560, both inclusive.)
• Certified copy of circular to preferred stockholders from Albert E. Peirce & Co. (Exhibits 5661.)
• Certified copy of letter from Albert E. Peirce & Co. (Exhibit 5662.)
• Niagara Falls Power Co., examiner’s adjustments of balance sheet accounts as of December 31, 1931. (Exhibit 5663.)
• Letter dated January 23, 1934, from J. M. Costello, treasurer, Broad River Power Co., Columbia, S.C., re merchandising operations; payments to H. C. Hopson & Co. and utility accountants and tax consultants, 1931, 1932, and 1933; photostatic copies of vouchers. (Exhibit 5664.)
• Report by Lewis G. Prichard (F.T.C.) on examination of the accounts and records of New York Power & Light Corporation and Adirondack Realty Holding Corporation, with accompanying appendixes and tables. (Exhibit 5665.)
• Correspondence under dates of November 3, 21, 1930; December 20, 23, 1930; January 13, 14, 16, 1931; between G. L. Ohrstrom, F. S. Spring, H. D. McHenry, of Tri-Utilities Corporation; Harvey T. Hill, E. W. Fedderson, of the Chicago Stock Exchange; R. R. Massey, of G. L. Ohrstrom & Co.; and M. E. Simond, re market transactions in Tri-Utilities Corporation common stock on the Chicago Stock Exchange. (Exhibit 5666.)
• Report of W. B. Horne (F.T.C.) on inter-corporate relations between companies in the Utilities Power & Light group. (Exhibit 5667.)
• Table showing officers and directors of certain companies in the Central Public Service group who were connected with two or more of these companies on December 31, 1931. (Exhibit 5668.)
• Chart showing directors of Central Public Service Corporation, October 31, 1923, to December 31, 1932. (Exhibit 5669.)
• Chart showing officers of Central Public Service Corporation, October 31, 1923, to December 31, 1932. (Exhibit 5670.)
• Utilities Power & Light group.–Corporate chart showing nature of principal business and percent of voting control of companies incorporated in the United States, as of December 31, 1931. (Exhibit 5671.)
• Report of Harry H. Carter (F.T.C.) on interstate transmission of electric energy and gas by the Cities Service Co. system, with tables. (Exhibit 5672.)
• Southern Sierras Power Co.—Map showing the generating and transmission system of the underlying and allied companies of the Nevada-California Electric Corporation. (Exhibit 5673.)
• Southern Sierras Power Co.—Blueprint showing proposed power distribution system of Imperial Irrigation District (State of California). (Exhibit 5674.)
• Southern Sierras Power Co.—Map showing the Imperial Irrigation District (California) and Cia de Terrenos y Aguas de la Baja California ; the All-American Canal as proposed, the lines of highway, etc. (Exhibit 5675.)
• Letter, dated September 7, 1933, from A. B. West, president, the Southern Sierras Power Co., Riverside, Calif., to Lee P. Warren, Southern Building. Washington, D.C., submitting statement of expenditures incurred in opposition to various proposed public power projects in Imperial Valley, January 1926 to June 1933, inclusive, and statement of position in this matter;
• letter, dated September 7, 1933, from A. B. West, president, the Southern Sierras Power Co., Riverside, Calif., to Lee P. Warren, Southern Building, Washington, D.C., enclosing statement and exhibits re various proposed public power projects in Imperial Valley, January 1926 to June 1933, inclusive.
• letter, dated March 5, 1934, from F. O. Dolson, general manager the Southern Sierras Power Co., Riverside, Calif., to Lee P. Warren, Southern Building. Washington, D.C., submitting two copies of revised statement of expenditures incurred in opposition to various public power projects in Imperial Valley (exhibit 5677).
• Reports, letters, newspaper clippings, etc., relating to expenditures by the Southern Sierras Power Co. against various public projects in the Imperial Valley, Calif. (Exhibits 5678 to 5698, both inclusive, except nos. 5682 and 5683 not offered.)

Since the last interim report fieldwork was continued on 3 important holding companies and an operating company of one of these, and on 3 operating companies in 2 other large holding company groups. Field examination of records of an operating company was completed and the preparation of reports covering the examination of accounts and records of 11 companies and engineering reports on 2 important holding company groups were continued.

An accounting report of an operating company, a report covering interstate transmission of electric energy and gas of a large holding company and a report on inter-corporate relations of another holding company were completed.

The next hearings are set for March 20, when a report and testimony on Associated Gas & Electric Securities Co., Inc., will be presented.

The transcript of the hearings on Niagara Falls Power Co. (which began February 15 and closed February 19) is printed in the volume accompanying this report, instead of with the report of February 15. 1934.

Transmitted herewith is the transcript of testimony of the hearings of February 16, 1934, to March 15, 1934 (pp. 38757 to 39434, both inclusive), together with the exhibits introduced as above described (exhibits 5633 to 5698, both inclusive, except numbers not offered as stated).

By direction of the Commission. Ewin L. Davis, Acting Chairman.

FEDERAL TRADE COMMISSION,
Washington, April 24, 1934.
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 holding and operating electric and gas companies, and associated engineering, finance, management, and construction companies, upon other matters specified in the resolution, 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 ”, and that it transmit there with the stenographic report of the evidence taken, this sixty-fourth interim report covering the period from March 16, 1934, to April 15, 1934, inclusive, is respectfully submitted.

Public hearings were held March 20, 21, 22, 23, 27, 28, 29, and April 10, 11, 12, 13, and 14. The reports and testimony presented related to the following groups and companies:

• Associated Gas & Electric Securities Co., Inc.
• Associated Gas & Electric Co.
• Associated Utilities Investing Corporation.
• Lexington Water Power Co. and Broad River Power Co.
• Utility Management Corporation, and its predecessor, J. G. White Management Corporation. (All of the Associated Gas & Electric System.)
• Daniel Starch and staff. Utilities Power & Light Corporation.
• Columbia Gas & Electric Corporation.

The witnesses were: Charles Nodder, A. M. McDermott, W. B. Horne, William J. Warmack, Mrs. Lucy Benedict, and J. C. Dicker man, all members of the Commission’s staff. Richard O. Marsh, civil engineer, Engineering Division, Public Works Administration; H. A. Stix, accountant, Associated Gas & Electric Co.; Harley L. Clark, president Utilities Power & Light Corporation; Edward Reynolds, Jr., vice president and treasurer, Columbia Gas & Electric Corporation: R. N. Thompson, vice president Associated Securities Corporation.

Reports and exhibits put into the record were:

• Report of Charles Nodder (Federal Trade Commission) on the examination of the accounts and records of Associated Gas & Electric Securities Co., Inc. (Associated Gas & Electric Co. group), with appendixes. (Exhibit 5699.)
• Associated Gas & Electric Co.: Revised balance sheet, December 31, 1929, with write-ups and non received income eliminated therefrom. (Exhibit 5700.)
• Correspondence concerning paid newspaper publicity contracted for with Daniel Starch and staff. (Exhibit 5701.)
• Associated Gas & Electric Co.: Answers to schedules E questionnaire of Federal Trade Commission; correspondence. (Exhibit 5702.)
• Working papers on schedules E–portfolio: Advertising, legal expenses, contributions, etc., years 1917 to 1927, inclusive, and 1928 to 1932, inclusive, Associated Gas & Electric Co. (Exhibit 5703.)
• Correspondence, newspapers, reprints, advertisements, office memoranda, contributions, subscriptions, etc. (re activities in municipal-ownership campaigns, publicity matter distributed, news releases, from files of Associated Gas & Electric Co. and Daniel Starch and staff). (Exhibits 5704 to 5775, inclusive.)
• Report of Charles Nodder (Federal Trade Commission) on examination of accounts and records of Associated Utilities Investing Corporation (Associated Gas & Electric group), together with exhibits. (Exhibit 5776.)
• Metropolitan Edison Co.: Statement showing write-ups in fixed capital, based on cost of investment to Metropolitan Edison Co. and/or affiliated companies. (Exhibit 5777.)
• Memorandum by Edwin T. Harris concerning Washington Water Power Co. and its acquired properties, Kootenai Power Co. and Consumers Co., and letter from Federal Trade Commission to American Power & Light Co. requesting additional material (in re Washington Water Power Co. and reply thereto). (Exhibit 5778.)
• Utilities Power & Light Corporation: Statement of account for legal and other services and vouchers. (Exhibits 5779 to 5782, inclusive.)
• Extracts from schedules E of reports of Columbia Gas & Electric Corporation and subsidiaries. (Exhibit 5783.)
• Columbia Gas & Electric Corporation: Copies of magazines entitled “Hail, Columbia “, 1930 and 1931 issues, and January and March 1932. (Exhibit 5784.)
• Letter, March 2, 1928, H. D. Fitch to S. J. Magee, vice president Associated Gas & Electric Co. (re management and construction contracts, congressional investigation, etc.); telegrams, dated February 28, 1928, and March 2, 1928, from H. D. Fitch to S. J. Magee and reply concerning request of Tennessee State Commission for copy of management contract and 1927 charges for services on Tennessee properties; letter, March 5, 1928, S. J. Magee to H. C. Hopson, same subject; letter, November 22, 1928, from Halford Erickson, Byllesby Engineering & Management Corporation, to William L. Ransom, of Whitman, Ransom, Coulson & Goetz (re White management and construction Contracts and alleged savings incidental thereto). (Exhibit 5785.)
• Memorandum, dated November 17, 1928, from H. C. Hopson to Mr. Mange. Financial relationship between Management Corporation and Associated Co. discussed. (Exhibit 5786.)
• Letter (interoffice correspondence), November 28, 1928, from E. F. Wilson to S. J. Magee, concerning the future developments of the holding company, and a plan to remove the control of generation and transmission from the jurisdiction of the public service commission. (Exhibit 5787.)
• Letter, June 13, 1928, from J. H. Pardee to H. C. Hopson, discussing various rates of management and engineering and construction fees by various holding companies. (Exhibit 5788.)
• Memorandum, S. J. Magee to H. C. Hopson, dated June 1, 1927, concerning payment of interest and service charges between related companies; memorandum, T. W. Moffatt to H. C. Hopson, dated April 15, 1929, relating to management fees and income notes. (Exhibit 5789.)
• Letter, J. H. Pardee to H. C. Hopson, dated July 12, 1927, relating to contributions to the joint committee of national utility associations; memorandum, H. C. Hopson to Mr. Magee, dated August 18, 1927, relating to the public policy of the National Electric Light Association. (Exhibit 5790.)
• Correspondence between S. J. Magee and certain members of the New York State Legislature, including Senator Warren T. Thayer and Assemblyman D. Mallory Stephens, and interoffice memoranda concerning same. (Exhibits 57.91 to 5800, inclusive.)
• Letters, H. D. Fitch to S. J. Magee, dated January 11, and March 31, 1928,concerning prospects of a State utility commission for Kentucky, and a resolution which passed the State Senate of Kentucky for an investigation of utility companies. (Exhibit 5801.)
• Letter, April 7, 1934, Robert E. Healy, chief counsel Federal Trade Commission, to H. A. Stix, Associated Gas & Electric Co., requesting certain described originals of letters to be brought to Federal Trade Commission hearing on April 11, 1934. (Exhibit 5802.)
• Circulars (re stock-exchange legislation circulated by Associated Gas & Electric System). (Exhibit 5803.)
• Photostat sheets showing relationship between H. C. Hopson and E. J. Cheney, and latter’s bank account. (See also pp. 121a–1 of exhibit 5806.)(Exhibit 5621.)
• Correspondence between officials of Associated Gas & Electric Co. and Associated Securities Corporation relating to purchase of common stocks and debentures. (Exhibits 5804–5805.)
• Report by Judson C. Dickerman on properties and operations of Broad River Power Co. and Lexington Water Power Co. (of the South Carolina group of properties within the Associated Gas & Electric System). (Exhibit 5806.)
• Pamphlet entitled “Employees’ Investing Plan—How It Started and What Its Aims Are”, Utilities Employees Security Co., March 1934. (Exhibit 5807.)
• Memorandum, dated April 12, 1934, by Charles Nodder (Federal Trade Com mission), concerning statement showing partial list of write-ups and investments resulting from appraisals by E. J. Cheney. (Exhibit 5808.)
• Not put in until April 16. (Exhibits 5809–5810.)
• Numbers not used. (Exhibits 5811–5S14.)
• Various exhibits from files of National Electric Light Association from 1929 to March 1933. (Exhibits 5815–5884A.)

Since the last interim report field work was continued on 3 important holding companies and on an operating company of one of these, and on 2 operating companies and 2 other large holding-company groups.

The preparation of the accounting reports on 6 companies and an engineering report on an important holding-company group was continued. Reports were completed on a securities company of a large holding-company group, on interstate transmission of electric energy of another group, of inter-corporate relations for another company, and an engineering report covering 2 operating companies in an important holding-company group.

The next hearing is scheduled for April 20, when a report and testimony on the Peabody Coal Co. (Insull controlled) will be presented.

Transmitted here with is the transcript of the testimony taken at the hearings of March 20 to April 14, 1934, both inclusive (pp. 39435 to 40637, both inclusive), together with the exhibits introduced as above described (exhibits 5699 to 5884A, both inclusive).

By direction of the Commission. GARLAND S. FERGUSON, Jr., Chairman.

FEDERAL TRADE COMMISSION,
Washington, May 18, 1934.
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 holding and operating electric and gas companies, and associated engineering, finance, management, and construction companies, upon other matters specified in the resolution, 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 ”, and that it transmit therewith the stenographic report of the evidence taken, this sixty-fifth interim report covering the period from April 16, 1934, to May 15, 1934, inclusive, is respectfully submitted.

Public hearings were held April 16, 20, 27, May 1, 2, 3, 4, 7, and 8, 1934.

The reports and testimony presented related to the following groups and companies:

• Broad River Power Co.
• Lexington Water Power Co. .
• Associated Gas & Electric Co. (revised balance sheet).
• (All of the Associated Gas & Electric Co. System.)
• Northeastern Power Corporation (of Niagara Hudson group).
• Southwest L. E. Myers Co. (of the Midwest (Insull) group).
• and publicity activities of the companies of Standard Gas & Electric Co. group.
• Electric Bond & Share Co. group.
• North American Light & Power Co. group.

and over 100 critical surveys of municipal plants and systems published by the Utilities Publication Co. of Chicago (H. J. Gonden, publisher).

The witnesses were: Judson C. Dickerman, Charles Nodder, John H. Bass, A. M. McDermott, John S. Biggs, J. K. Arnold, Kenneth A. Miller, Ernest R. Lucas, Carl H. Depue, all of the ?ommission’s staff;

• H. J. Gondon, Glenn Marston, of the Utilities Publication Co., Chicago;
• W. D. Gale, vice president, North American Light & Power Co.;
• Frank Donovan, former councilman, Bloomington, Ill.

The reports and exhibits put into the record were:

• Copy of opinion no. 13738, filed December 18, 1933, Supreme Court of South Carolina, entitled “John C. Coney et al. v. Broad River Power Co.” (exhibit 5809).
• Associated Gas & Electric Co., copy of voucher no. 12–236, December 1926, of Plattsburg Gas & Electric Co. (exhibit 5810).
• The report by Judson C. Dickerman on properties and operations of Broad River Power Co. and Lexington Water Power Co., of the Associated Gas & Electric Co. group (exhibit 5806) was introduced on April 14. (See Sixty fourth interim report.)
• Peabody Coal Co., report by John H. Bass (Federal Trade Commission) on control of coal fuel supplies by Insull interest through ownership of control of Peabody Coal Co. exhibit 5811).
• Standard Gas & Electric Co., extracts and itemized statements from schedules E furnished by various companies of Standard Gas & Electric Co. system (exhibit 5812).
• Correspondence between Samuel S. Wyer and others relating to his Niagara Falls pamphlet and testimony of Mr. Wyer before a special legislative committee of Pennsylvania (exhibits 5813 and 5814).
• Correspondence, etc., relating to publicity activities of companies of the Standard Gas & Electric Co. system? (exhibits 5885–5914).
• Lists of documents and files of the companies of the Electric Bond & Share Co. group selected by John Knox Arnold in July 1928 (exhibits 4006–7).
• Correspondence, etc., relating to publicity activities and opposition to municipal plants by companies of the Electric Bond & Share Co. group (exhibits 5915–5930).
• Supplement to report by Ernest R. Lucas (F.T.C.) on examination of the accounts and records of Northern New York Utilities, Inc., subsidiary of the Power & Electric Securities Corporation (F.T.C., exhibit 5549).
• Statement by Kenneth A. Miller of profit realized by St. Regis Paper Co. from the sale of a hydroelectric development on the Black River, N.Y., to Northern New York Utilities, Inc., together with value at which the property was recorded by Northern New York Utilities, Inc. (exhibit 5931).
• Report of Ernest R. Lucas (F.T.C.) on the examination of the accounts and records of Northeastern Power Corporation (subsidiary of Niagara Hudson Power Corporation), with accompanying exhibits and appendices (exhibit 5932).
• Southern Colorado Power Co., letter, April 30, 1934, from William J. Hegenah, Chicago, Ill., to Federal Trade Commission, enclosing corrected schedule E–3 for the Southern Colorado Power Co. (exhibit 5933).

Exhibits 5934–39, numbers not used.

• Correspondence, documents, etc., relating to critical surveys of municipal plants and systems published by Utilities Publication Co., H. J. Gonden, publisher (exhibits 5940–5977, inclusive).
• Report by Carl H. Depue (F.T.C.) on examination of accounts and records of Southwest, L. E. Myers Co., with accompanying exhibits and appendixes (exhibit 5978).
• Correspondence, etc., relating to publicity activities of companies of the North American Light & Power Co. system (exhibits 5979–5996, inclusive).

Since the last interim report field work was continued on three important holding companies and on an operating company in one of these groups. Field work was completed on an operating company in another large holding company group. The examination of accounts and records was i.on an operating company and on an engineering company in two different groups.

The preparation of the accounting reports on nine companies and two engineering reports on important holding company groups were continued. A servicing report and an important securities company report were also continued. Reports on a sub-holding company and on a construction company were completed.

The next hearing is scheduled for May 21, when the first reports on the Stone & Webster group will be presented. The companies of this group to be covered at this time are: Stone & Webster, Inc., Engineers Public Service Co., and Stone & Webster Engineering Corporation.

On May 22 the report on the records and financial set-up of Cities Service Co. will be presented.

Transmitted herewith is the transcript of testimony taken at the hearings from April 15 to May 15, both inclusive (pp. 40638 to 41467, both inclusive), together with the exhibits introduced as above described, to wit: Exhibits 4006, 4007, 5811 to 5814, inclusive; 5885 to 5933, inclusive; 5940 to 5986, inclusive; and 5988 to 5996, inclusive.

By direction of the Commission: GARLAND S. FERGUSON, Jr., Chairman.

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 holding and operating electric and gas companies, and associated engineering, finance, management, and construction companies, upon other matters specified in the resolution, and direct ing 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 ”, and that it transmit therewith the stenographic report of the evidence taken, this sixty-sixth interim report covering the period from May 15, 1934, to June 15, 1934, is respectfully submitted.

Public hearings were held May 21, 22, 23, 24, 25, 28, 29, and June 4, 5, and 14, 1934. The reports and testimony presented related to the following groups and companies:

• Stone & Webster, Inc. (Delaware); Engineers ware);
•  Public Service Co. (Dela Stone & Webster Engineering Corporation (all of the Stone & Webster group);
• Cities Service Co. (H. L. Doherty system);
• Mohawk Hudson Power Corporation (Niagara Hudson group); and
• Electric Bond & Share Co.

The witnesses were: T. W. Mitchell, LeClaire Hoover, A. E. Lundvall, Clarence G. Farwell, William J. Warmack, Charles R. Taylor, A. M. McDermott, Frank C. Hale, W. B. Horne, and Harry H. Carter, all of the Commission’s staff, and

• Charles Weinfeld, attorney, Chicago;
• Charles E. Mitchell, former president National City Co.;
•  and Stanley A. Russell and Joseph P. Ripley, former vice presidents, National City Co.

The reports and exhibits put into the record were:

• Broad River Power Co.: Copy of opinion of the Supreme Court of the State of South Carolina denying petition for rehearing in case of John C. Coney et al. v. Broad River Power Co. (Exhibit 5809–A.)
• Stone & Webster, Inc. : Map showing territory served by Engineers’ Public Service Co. (Exhibit 5934.)
• Stone & Webster, Inc.: Corporate chart of Stone & Webster group, showing both controlled companies and supervised companies, as of December 31, 1932. (Exhibit 5935.)
• Stone & Webster, Inc. : Report by Harry H. Carter (Federal Trade Commission) on interstate transmission of electric energy and gas by the Stone & Webster, Inc., system. (Exhibit 5936.)
• Stone & Webster group: Report of William J. Warmack (Federal Trade Commission) on the examination of the accounts and records of Stone & Webster, Inc. (Delaware), together with accompanying tables and appendixes. (Exhibit 5937.)
• Stone & Webster, Inc., group: Report of Charles R. Taylor (Federal Trade Commission) on examination of accounts and records of Engineers’ Public Service Co. (Delaware), with accompanying appendixes and schedules. (Exhibit 5938.)
• Report of A. E. Lundvall (Federal Trade Commission) on examination of accounts and records of Cities Service Co. (vol. I) and exhibits and appendixes. (Exhibits 5997 and 5998.)
• Report of Frank C. Hale (Federal Trade Commission) on examination of accounts and records of Stone & Webster Engineering Corporation with exhibits and appendixes. (Exhibit 5939.)
• Report of Clarence G. Farwell (Federal Trade Commission) on examination of accounts and records of Mohawk Hudson Power Corporation, with accompanying tables, exhibits, and appendixes. (Exhibit 5999.)
• Exhibits introduced in connection with the testimony of Charles Weinfeld as to expenditures by his firm for utilities companies for political purposes. (Exhibits 6000 to 6004.)
• Cities Service Co.: Copy of contract dated September 17, 1930, between Missouri-Kansas Pipe Line Co., National City Co., and Columbia Oil & Gasoline Corporation, together with supplemental agreements, re sale of $20,000,000 in bonds of Panhandle Eastern Pipe Line Co. (Exhibit 6005.)
• Cities Service Co.: Copies of telegrams (5), under dates of September 22, 23, and 24, 1930, between Charles E. Mitchell and Henry L. Doherty, refinancing of Missouri-Kansas Pipe Line Co. (Exhibit 6006.)
• Letter, dated May 28, 1934, from W. D. Gale, vice president, North American Light & Power Co., Chicago, Ill., to William T. Chantland, of Federal Trade Commission, enclosing a statement of costs in connection with the election at Oskaloosa, Iowa (1934), involving municipal ownership. (Exhibit 6007.)
• Supplemental financial statements of Electric Bond & Share Co., by LeClaire Hoover. (Exhibit 6008.)
• Report on sale of common stock to officers and other employees of Electric Bond & Share Co. and subsidiaries, by Thomas W. Mitchell. (Exhibit 6009.)
• Letter of February 21, 1929, to stockholders of Electric Bond & Share Co. re-consolidation with Electric Bond & Share Securities Corporation. (Exhibit 6010.)
• Plan of Electric Bond & Share Co. for the sale of common stock to officers and/or other employees, adopted July 1, 1929. (Exhibit 6011.)

Since the last interim report field work was continued on 3 important holding-company groups and on 2 operating companies in 2 of these groups and on 1 servicing company in another group. Field work was completed on 2 large holding companies.

Accounting reports covering the examination of accounts and records of 3 companies in 1 large group, 1 on the growth of capital assets of a large company and 1 on a large sub-holding company were completed. The preparation of 10 accounting reports, reports covering inter-corporate relations of 5 large systems and 4 interstate transmission reports on large groups was continued. A report on the natural-gas operations by the more important holding company groups in the United States is also being prepared. A servicing report and an important securities company report were continued. Two engineering reports on physical properties and operations were also continued.

The next hearing is being held today, June 15, and relates to the Oswego Power Corporation of the Niagara Hudson group.

Transmitted herewith is the transcript of testimony taken at the hearings from May 16 to June 15 (pp. 41468 to 425.10, both inclusive), together with exhibits introduced as above described (Exhibits nos. 5809–A, 5934 to 5939, both inclusive, and 5997 to 6011, both inclusive).

By direction of the Commission: GARLAND S. FERGUSON, Jr., Chairman.

Federal Trade Commission,
Washington, July 18, 1934.
To the Senate of the United States:

Pursuant to Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928 (as extended by S. J. Res. 115, 73d Cong., 2d session., approved June 26, 1934), directing the investigation of certain classes of holding and operating electric and gas companies, and associated engineering, finance, management, and construction companies, upon other matters specified in the resolution, 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 ” and that it transmit therewith the stenographic report of the evidence taken, this sixty-seventh interim report covering the period from June 15, 1934, to July 15, 1934, is respectfully submitted.

Public hearings were held at Washington, D. C, June 14, 15, 27, 28, 29, and 30 and July 2, 5, 9, 10, 11, and 13, 1934. A hearing was also held at Tampa, Fla., July 10 and 11, 1934.

The reports and testimony presented related to the following groups and companies:

• Corporation Securities Co. of Chicago.
• West Texas Utilities Co. of the Insull group.
• Cities Service Gas Co.
• Cities Service Gas Pipe Line Co.
• Gas Service Co.
• Kansas City Gas Co. (natural gas subsidiaries of Cities Service group).
• Oswego River Power Corporation.
• St. Lawrence County Utilities, Inc.
• St. Lawrence Valley Power Corporation.
• Power Corporation of New York, of the Niagara Hudson group.
• Stone & Webster, Inc.
• Engineers Public Service Co., Inc.
• Mississippi River Power Co.
• Hydraulic Engineering Co.
• Tampa Electric Co. of the Stone & Webster group.
• Supplemental reports on Electric Bond & Share Co. group were also presented.

The witnesses who appeared at Washington were : LeClaire Hoover, Thomas W. Mitchell, G. A. Stephens, Ernest R. Lucas, A. M. McDermott, Roger E. Barnes, A. E. Lundvall. Arthur L. Lyddane, Charles R. Taylor, Charles T. Windle, W. B. Home, John D. Mullock, C. H. Depue, Andrew W. Wilcox, Kenneth A. Miller, all of the Commission’s staff. At the Tampa, Fla., hearing the following witnesses testified :

• D. B. McKay, owner of Tampa Publishing Co. and WDAE radio.
• David E. Smiley and Ralph Nicholson lessees of Tampa Times.
• Peter O. Knight, president of Tampa Electric Co.
• Kenneth I. McKay, attorney.
• E. W. Sisson, auditor, Tampa Times Co., and Tampa Publishing Co.
• Harold P. Anderson, comptroller, Tampa Gas Co.
• Rollle Hathaway, chief clerk, Tampa Electric Co.
• Frank Gannon, general manager, Tampa Electric Co.

The reports and exhibits put into the record were :

• Memorandum, dated June 14, 1934, by G. A. Stephens (Federal Trade Commission), in re information requested of Electric Bond & Share Co., April 11, 1034, pertaining to service fees and dividend payments of domestic operating companies associated with it and correspondence with schedules attached (exhibit no. 6012).
• Report of Ernest R. Lucas (Federal Trade Commission) on the examination of the accounts and records of Oswego River Power Corporation (of Niagara Hudson Power Corporation), with tables and appendixes (exhibit no. 6013).
• Report by Roger E. Barnes (Federal Trade Commission) on the examination of the accounts and records of Cities Service Gas Co., Cities Service Gas Pipe line Co., and Gas Service Co. (natural-gas subsidiaries of Cities Service Co.) (exhibit no. 6015).
• Report by Edwin T. Harris (Federal Trade Commission) and William H. England (Federal Trade Commission) on construction of Keokuk Dam and hydroelectric plant for Mississippi River Power Co. by Hydraulic Engineering Co., with appendix (exhibit no. 6016).
• Report by Edwin T. Harris on the accounts and records of Engineers Public Service Co., Inc. (New York) (Stone & Webster group), with exhibits and appendixes (exhibit no. 6017).
• Report by Thomas W. Mitchell (Federal Trade Commission) and A. A. Hartley (Federal Trade Commission) on the examination of the accounts and records of the Corporation Securities Co. of Chicago (exhibit no. 6018).
• Report by Arthur L. Lyddane (Federal Trade Commission) on the accounts and records of St. Lawrence County Utilities, Inc. (pt. I) and St. Lawrence
• Valley Power Corporation (pt. II), subsidiaries of St. Lawrence Securities Co., with tables and appendixes (exhibit no. 6019).
• Map.- — Mid-Continent Natural Gas System of the Cities Service Gas Co., distribution system owned by Cities Service Co., as of December 31, 1931 (exhibit no. 6020).
• Report by John D. Mullock (Federal Trade Commission) on the accounts and records of the Kansas City Gas Co. (of the Cities Service group) (exhibit no. 6021).
• Report of Charles T. Windle (Federal Trade Commission) on management, supervision, and servicing contracts of Stone & Webster, Inc. (exhibit no. 6022).
• Report by W. B. Home (Federal Trade Commission) on inter-corporate relations between companies in the Stone & Webster group (exhibit no. 6023).
• Corporation Securities Co. of Chicago : Second report of Charles A. McCulloch, receiver of Middle West Utilities Co., June 28, 1934 (exhibit no. 6024).
• Corporation Securities Co. of Chicago: Statement of Mr. Samuel Instill, chairman of the Corporation Securities Co. of Chicago, at annual meeting of stockholders, February 17, 1930 (exhibit no. 6025).
• Corporation Securities Co. of Chicago : Photostatic copy of a page from the New York Times of September 12, 1930. advertising $40,000,000 in serial gold notes of Corporation Securities Co. of Chicago (exhibit no. 0026).
• Corporation Securities Co. of Chicago: Photostatic copy of telegram, dated June 24, 1931. from “Jim” to Martin J. Insull, concerning efforts made to sustain Middle West stock on the market (exhibit no. 0027).
• Corporation Securities Co. of Chicago : Photostatic copy of letter, dated August 15, 1931, from J. L. Martin to Martin J. Insull, telling of the necessity for popularizing Insull securities in the New York market (exhibit no. 6028).
• Two letters re Insull securities (exhibits nos. 6020 and 6030).
• Report by C. H. Depue on West Texas Utilities Co. of the Insull group (exhibit no. 6031).
• Man—West Texas Utilities Co. (exhibit no. 6032).
• Report by Andrew W. Wilcox on Power Corporation of New York, with appendixes (exhibits nos. 6033 and 6034).
• Letters of Peter O. Knight, president, Tampa Electric Co., and memorandums re expenditures of the Tampa Electric Co and Tampa Gas Co. (exhibits nos. 6036 and 6054).

Since the last interim report, field work on 3 important holding company groups, including 2 subsidiaries thereof, has been completed. The examination of the accounts and records of an operating company was continued.

Accounting reports of 4 operating companies in 1 large group, l’ engineering and service companies, a large securities company in another group and 1 gas sub-holding and 3 gas-operating companies in another large group were completed. A report on inter-corporate relations and 1 on management and supervision of an important group and 1 on an operating company in another group were also completed.

The preparation of 12 accounting reports, 4 inter-corporate relations reports, and 4 interstate transmission reports was continued.

Work on report on the growth of natural-gas operations by the more important holding company groups in the United States and engineering reports on 2 large holding company groups were continued.

The next hearings are scheduled for July 17 and 18, when reports and testimony on Southwestern Gas & Electric Co., Public Service Co. of Oklahoma, and Central Power & Light Co. of the Insull group, and a report on the natural-gas properties of Columbia Gas & Electric Co. will be presented.

Transmitted herewith is the transcript of testimony taken at the hearings from June 16 to July 15 (pp. 42511 to 43663, both inclusive) , together with exhibits introduced as above described (exhibits nos. 6012 to 6054. both inclusive except for exhibit 6035, which went into vol. 68).

By direction of the Commission: Garland S. Ferguson, Jr., Chairman

Federal Trade Commission
August 16, 1934,
To the Senate of the United States:

Pursuant to Senate Resolution 83, Seventieth Congress, first session approved February 15, 1928 (as extended by S.J.Res. 115, 73d Cong., 2d sess., approved June 26, 1934), directing the investigation of certain classes of holding and operating electric and gas companies, and associated engineering, finance, management, and construction companies, upon other matters specified in the resolution, 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 ” and that it transmit therewith the stenographic report of the evidence taken, this sixty-eighth interim report covering the period from July 16, 1934, to August 15, 1934, is respectfully submitted.

Public hearings were held at Washington, D.C., July 17, 18, and 19 and August 13 and 14, 1934.

The reports and testimony presented related to the following groups and companies:

• Southwestern Gas & Electric Co., Public Service Co. of Oklahoma and its subsidiaries, and Central Power & Light Co. (all of the Insull group),
• Columbia Gas & Electric Corporation.
• Tri-Utilities Corporation, and a report on the natural gas production, distribution and interstate movement of natural gas in the United States was also presented.

The witnesses, all of the Commission’s staff, were: Carl H. Depue, J. W. Adams, Lewis G. Prichard, Harry H. Carter.

The reports and exhibits put into the record were:

• Map, showing territory served by, and transmission lines of, Southwestern Gas & Electric Co. (Ex. 6035.)
• Report of Carl H. Depue and Huldah D. Jackson on examination of accounts and records of Southwestern Gas & Electric Co. (subsidiary of Central & South West Utilities Co.) (Insull group). (Ex. 6055.)
• Report of Carl H. Depue on the examination of the accounts and records of Public Service Co. of Oklahoma and subsidiaries (Insull group). (Ex. 6056.)
• Map, showing transmission lines and interconnections of Public Service Co. of Oklahoma, as of December 31, 1931. (Ex. 6057.)
• Map, showing territory served by the Southwestern Light & Power Co., as of December 31, 1931. (Ex. 6058.)
• Report of Carl H. Depue on examination of accounts and records of Central Power & Light Co. and subsidiaries (Insull group). (Exs. 6059 and 6060.)
• Map, showing territory served by the Central Power & Light Co., as of December 31, 1931. (Ex. 6061.)
• Map, showing the principal natural gas pipe lines and natural gas fields of the United States, as of December 31, 1932. (Ex. 6062.)
• Report of J. W. Adams, on physical properties and operations of Columbia Gas & Electric Corporation system. (Ex. 6063.)
• Edison Electric Institute Statistical Bulletin No. 9, August 1933. (Ex. 8064.)
• Report of Harry H. Carter on interstate commerce of companies of Tri lltil ities group. (Ex. 6065.)
• Map, Tri-Utilltles operating subsidiaries (power, gas, and water). (Ex. 6066.)
• Report of Lewis G. Prichard on examination of accounts and records of Tri-Utilities Corporation. (Ex. 6067.) Report of Harry H. Carter on growth of natural gas production, distribution and interstate movement of natural gas in the United States. (Ex. 6068.)

Since the last interim report, field work on the examination of accounts and records of an operating company of a large holding company group was completed and field work was begun on a large holding company group.

Accounting reports were completed on three subsidiaries of a large holding company group, on a large holding company and on an important operating company of that group. A report was also completed covering the interstate transmission of electric energy of a large holding company system and an engineering report was finished on a large holding company system. A report on the growth of natural gas operations by the more important holding company groups in the United States was also completed.

The preparation of nineteen accounting reports, four inter-corporate relations reports and three interstate transmission reports, covering several different groups was continued. An engineering report on a large holding company group was also continued.

The next hearing is scheduled for August 31, when the report on Associated General Electric Co. will be put in the record.

Transmitted herewith is the transcript of testimony taken at the hearings from July 16 to August 15, 1934, inclusive (pp. 43665 to 44114), together with exhibits introduced as above described (exhibits 6035 and 6055 to 6078, both inclusive).

By direction of the Commission : Garland S. Ferguson, Jr., Chairman.

Federal Trade Commission,
September 15, 1934.
To the Senate of the United States:

Pursuant to Senate Resolution 83, Seventieth Congress, first session,approved February 15, 1928 (as extended by SJ.Res. 115, 73d Cong., sess., approved June 26, 1934), directing the investigation of certain classes of holding and operating electric and gas companies, and associated engineering, finance, management, and construction companies, upon other matters specified in the resolution, 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 ” and that it transmit therewith the stenographic report of the evidence taken, this sixty-ninth interim report covering the period from August 15, 1934, to September 15, 1934, is respectfully submitted.

Public hearings were held on August 22 and September 6, 1934, at Washington, D.C. The reports and testimony presented related to the following companies and groups:

• Dallas Power & Light and Tennessee Public Service Co. of the Electric Bond & Share Co. group;
• and Central Power & Light Co. and subsidiaries of the Insull group.

The witnesses, all of the Commission’s staff, were : John T. Crabtree, Carl H. Depue, and Walter Meleen.

The reports and exhibits put into the record were :

• Report by Carl H. Depue on examination of accounts and records of Dallas Power & Light Co., with accompanying exhibits and appendices (exhibit 6080).
• Report by Walter Meleen on examination of accounts and records of the Tennessee Public Service Co., with accompanying exhibits (exhibit 6081).
• Letter, dated July 24, 1934, from N. P. Zech, comptroller, Middle West Utilities Co., addressed to Francis Walker, chief economist, Federal Trade Commission, referring to report on examination of accounts and records of Central Power & Light Co. and subsidiaries which dealt with certain appreciation write-up (exhibit 6082).
• Federal Incorporation or licensing of corporations. This exhibit is a study of, and assembly of proposals for, and of views for and against Federal incor poration or licensing of corporations compiled for use of the Commission in considering the question of Federal incorporation or licensing of public-utilities corporations (exhibit 6083).
• Topical compilation of the constitutional, statutory, and case law concerning corporations and sales of securities, with particular attention to public utilities and holding companies (exhibit 6084).

Exhibits 6083 and 6084 are studies and compilations prepared for the use of the Commission in considering its final recommendations in response to the direction of the Senate’s resolution. Other agencies of the Government have now also been directed by the President to study the utilities problems and make recommendations. As a result of such studies and of an increasing public interest in the subjects, there has been such a demand on the Commission for copies of them that it seems advisable to have copies printed in a separate volume and made immediately available.

Since the last interim report, field work on the examination of accounts and records of a gas and electric holding company was completed. Field work was begun on a large gas company, two operating companies of a large holding company group, an operating company of another group, and a large holding and management company.

Accounting reports on two operating companies of an important holding company group and an operating company of another group were completed. The preparation of 17 accounting reports, 4 inter-corporate relations reports, and 5 interstate transmission reports covering several different groups was continued. A report covering the physical properties and operations of a large holding company group was also continued.

Much of the work under the extension of the investigation to January 1936 will be devoted to an examination of pipe-line companies engaged in the transmission of natural gas and their associated producing and distribution companies. The national importance or the natural-gas industry is apparent when it is realized that it is already delivering to the public several times more energy than that represented by the entire commercial supply of electric energy, and that interstate pipe lines from the natural gas fields deliver gas to nearly every metropolitan area east of the Rocky Mountains except in New England and a few Southeastern States. There are also extensive natural gas fields .and pipe lines in the Pacific Coast States. Public interest also attaches to the natural gas industry from the fact that 4 large groups (3 of which are also in the electric-utility business) moved over 60 percent of all of the natural gas transported across Stat© lines during 1930. These same four groups also controlled about 60 percent of the total natural gas pipe-line mileage of the United States.

The next hearings are scheduled as follows: September 19, when certain matters relating to the Conden so-called ” surveys of municipal plants” will be introduced; September 21, when a report on Associated General Electric Co. of the Associated Gas & Electric Co. system will be introduced; September 24, when a report on General Gas & Electric Co. of the Associated Gas & Electric Co. system will be introduced; and September 25 to 28, when various reports on companies of the Stone & Webster system and other matters relating to that system will be introduced, and at which time hearings will also be held relating to certain political activities of the Cities Service Co. in Kansas.

Transmitted herewith is the transcript of testimony of the hearing of August 22 and September 6, 1934 (pp. 44115-44310), together with exhibits introduced as above described (exhibits 6079 to 6084, inclusive).

By direction of the Commission: Garlaito S. Ferguson. Jr., Chairman.

September 21, 1934.
Dear Sir: Herewith I have the honor to transmit two certain studies made pursuant to the Commission’s investigation underSenate Resolution No. 83, Seventieth Congress, first session, approved February 15, 1928 (as extended by Senate Joint Resolution No. 115, Seventy-third Congress, second session, approved June 26, 1934) directing investigation of certain utility corporations, referred to in the Commission’s sixty-ninth interim report sent to the Senate September 15, 1934. These studies are identified as exhibits 6083, a compilation of proposals and views for and against Federal incorporation or licensing of corporations, and exhibit 6084, a compilation of State constitutional, statutory, and case law concerning corporations, with particular attention to public utility holding and operating companies. It is requested that these be printed as part no. 69-A.

By direction of the Commission: Garland S. Ferguson, Jr., Chairman.

October 15, 1934.
To the Senate of the United States:

Pursuant to Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928 (as extended by S. J. Res. 115, 73d Cong., 2d sess., approved June 26, 1934), directing the investigation of certain classes of holding and operating electric and gas companies, and associated engineering, finance, management, and construction companies upon other matters specified in the resolution, 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”, and that it transmit therewith the stenographic report of the evidence taken, this seventieth interim report covering the period from September 16, 1934, to October 15, 1934, is respectfully submitted.

Public hearings were held on September 21, 25, 26, 27, 28 and October 1, 1934. The reports and testimony presented related to the
following companies and groups :

• Associated General Electric Corporation,
• General Gas & Electric Co.,
• General Gas & Electric Corporation,
• W. B. Barstow interests,
• all of the Associated Gas & Electric System.
• Empire Gas & Fuel Co.,
• Gas Service Co.,
• Cities Service Co.,
• all of the Cities Service group.
• Stone & Webster, Inc.,
• Stone & Webster Service Corporation,
• Virginia Electric & Power Co.,
• all of the Stone & Webster System.

The witnesses were Charles Nodder, Charles R. Taylor, William B. Home, William J. Warmack, Thomas A. Thibodea Ambrose M. McDermott, all of the Commission’s staff ;

• Howell Wright, formerly director of public utilities, Cleveland, Ohio;
• O. W. Sass, formerly Cleveland, Ohio;
• Robert L. Owens, accountant. Reconstruction Finance Corporation, Washington, D. C. ;
• Earle W. Hodges, in charge of public relations of Henry L. Doherty & Co.;
• George H. Shaw, of Lee, Shaw & McCreery, attorneys for the Doherty interests in Colorado and Kansas ;
• B. C. Adams, vice president and general manager of Gas Service Co. of the Cities Service System ;
• W. L. Dickey, publisher, Kansas City Journal-Post;
• Russel Sharp, El Dorado, Kans. ;
• James W. Greenbank, publisher and editor of Butler County News. El Dorado, Kans.;
• R. A. Clymer, publisher and editor, El Dorado Times, El Dorado, Kans.;
• Paul R. Williams, comptroller, Virginia Electric & Power Co., Richmond, Va., of the Stone & Webster System; and
• William T. Crawford, vice president and secretary of various Stone & Webster companies.

The reports and exhibits put into the record were:

• File of papers consisting of letters and correspondence between Peter O. Knight and H. R. Whiton, of Stone & Webster, relating to legislation in Florida, etc. (exhibit 6014).
• Exhibits 6083 and 6084, which were formally introduced into the record on September 21, 1934, were transmitted with the sixty-ninth report and are to be printed aa a separate volume and numbered part 69-A.
• Letter, C. G. Abbot, secretary, Smithsonian Institution, dated September 18, 1934, to William T. Chantland, counsel. Federal Trade Commission, concerning connection of S. S. Wyer with the Smithsonian Institution and the printing by the latter of certain work of Mr. Wyer (exhibit 6086).
• Report by Charles Nodder (Federal Trade Commission) on the examination of the accounts and records of Associated Oeneral Electric Corporation (Associated Gas & Electric Group) (exhibit 6086).
• Volume containing correspondence requested by Walter B. Wooden (Federal Trade Commission). Submitted by B. C. Adams, Gas Service Co., Kansas City, Mo. (exhibit 6087).
• Utilities Publication Co., report for January 1931 on municipally owned utility properties, giving data on municipal electric-light plant of Cleveland, Ohio, by Howell Wright, former director of public utilities of Cleveland, Ohio (exhibit 6088).
• Pamphlet, “Theory, Politics, or Common Sense”, “Cleveland’s Municipal Light Plant and Its Future”, by Howell Wright (exhibit 6089).
• Pamphlet, ” The Future of Cleveland’s Municipal Light Plant “, by Howell Wright, director of public utilities, Cleveland, Ohio; forword by Newton D. Baker (exhibit 6090).
• Report by Howell Wright, director of public utilities, Cleveland, Ohio, released for publication July 27, 1924 (exhibit 6091).
• Report by L. A. Quayle. chief engineer, department of public utilities, to B. H. Krueger, director of public utilities of Cleveland, Ohio, dated February 12, 1931 (exhibit 6092).
• Pamphlet, “The Economics and Politics of Cleveland’s Municipal Light Plant”, by Howell Wright, director of public utilities, Cleveland, Ohio (re printed from National Municipal Review, vol. XX, no. 7, July 1931) (exhibit 6093).
• Pamphlet, ” The Power Utilities on the ‘ Hot Spot ‘ “, by Howell Wright, director of public utilities (reprinted from Aug. 31, 1933, issue of Public Utilities Fortnightly) (exhibit 6094).
• Pamphlet (reprint from June 22, 1933, Issue of Public Utilities Fortnightly), What the Governors Think of the State Commission “, by Howell Wright, ex-director of public utilities, Cleveland, Ohio (exhibit 6095).
• Pamphlet (reprint from May 25 and June 8, 1933, issues of Public Utilities Fortnightly), “Why the State Commissions Should Regulate the Municipal Plants” (pts. I and II), by Howell Wright (exhibit 6096).
• Photostat copy of invoice of Journal-Post Co., amounting to $3,986.60, covering salary and expense of Ed Martindale, and an item entitled, “Killeen Story, $100” (exhibit 6097).
• Photostat copies of voucher receipts and memorandum showing payments to Louis Roesle, George H. Shaw, and John McLachlan by Capital Gas & Electric Co., Topeka, Kans. (Cities Service Gas Co., Doherty interests), for salaries, advertising, office supplies, garage rent, automobile expense, petty cash advance, and payment of $100 to Frank R. Wadell (exhibit 6098).
• Photostat copies of voucher receipts showing payments made to W. R. Smith and John McLachlan by Capital Gas & Electric Co. for salaries and expenses(exhibit 6099).
• Empire Oil & Refining Co., reimbursement statement, dated October 16, 1931, vouchers in favor of J. L. Replogle and George H. Shaw (photostat copies) (exhibit 6100).
• Empire Oil & Refining Co., photostat copies of reimbursement statements, vouchers showing payments in favor of Wichita Beacon. Wichita Eagle, Kansas City Journal-Post, Frank R. Wadell, Ernest E. Laws, W. R. Smith, and others. Correspondence, Cities Service Co., Robert L. Owens, R. L. Morton, Jr., of the Empire Cos. in re reimbursement statements (exhibit 6101).
• Correspondence, 12 pages of letters, various dates in 1931 and 1932, addressed to W. R. Phipps (Wichita Gas Co.), Charles W. Rump (Public Service Co. of Colorado), Earle W. Hodges (Henry L. Doherty & Co.), J. G. Mawson (Arkansas Valley Gas Co.), R. J. Daugherty (The Empire Cos.), Ben C. Adams (Gas Service Co.), E. R. Barriss (Gas Service Co.), in re election results in Kansas and Missouri (exhibit 6102).
• Correspondence’, Earle W. Hodges to Eh W. Harris (Arkansas Natural Gas Corporation), Frank Hodges (viee president Henry L. Doherty & Co.), Mr. Tullock (secretary of Henry L. Doherty), Gov. George H. Hodges, of Kansas, concerning Hot Springs situation, Little Rock, “Journal-Post, -Kansas politics, conditions in Kansas City, Mo.; Hutchinson, Kans., franchise, and Gas Service Co. officials in Kansas City (exhibit 8103)
• Cities Service Co., advertising campaign in Kansas (2 series, 30, advertisements, Oct. 22, 1931, to July 26, 1834.) (exhibit 6104)
• Copy of a ledger sheet from flies of the Wichita “Beacon, offered by Walter B. Wooden (Federal Trade Commission) (exhibit 6105).
• Copies of certain pages from liability ledger of Kansas City Journal-Post, Kansas City, Mo. (exhibit 6106-A).
• Photostatic copies of vouchers showing payments for advertising in the Wichita Beacon and the Kansas City JoumalrPost (various dates in 1932.),
• Cities Service Co. Letter, dated November 1, 1932, from George H. Shaw, of Henry L. Doherty & Co., concerning payment to Wichita Beacon, addressed to H. E. Butcher, assistant treasurer The Empire Cos., Bartlesville, Okla. (exhibit 6106-B).
• Letters from B. C. Adams (Gas Service Co,) to B. B. Barnes (Federal Trade Commission), all under date of March 24, 1933, concerning tabulated statements of expenses incurred in Municipal Gas elections at Eldorado, Hutchinson, and Newton, Kans. (exhibit 6106-C). Kansas City Journal-Post, purchase by Henry L. Doherty (announcement In issue of Aug. 7, 1931) (exhibit 6107).
• Tabulation showing amounts received by Kansas City Journal-Post Co. from George H. Shaw, agent, during 1931, 1932, and 1933 (exhibit 6108).
• Statements rendered to George H. Shaw, agent, during 1931, 1932, and 1933, account of Kansas City Journal-Post Co. with Henry L. Doherty (exhibit 6109).
• Tabulation showing payments made by Kansas City Journal-Post during 1931, 1932, and 1933, and refunded by George H. Shaw, agent (exhibit 6110).
• Record of deposits and withdrawals from National Bank of Topeka covering the George H. Shaw agent’s account (exhibit 6111).
• Advertisement “The Square Deal Club Stands Foursquare” (cartoon), Eldorado Times of March 24, 1932 (exhibit 6112).
• Copies of letters from flies of Stone & Webster, Inc., relating to the Gering, Nebr., municipal situation (exhibits 6113, 6114, 6115, 6117, and 6118).
• Copy of letter from H. T. Edgar to M. H. Aylesworth, executive secretary National Electric Light Association, concerning articles being published in local papers of western Nebraska against municipal ownership. Letter dated January 26, 1926 (exhibit 6116).
• Extracts from schedules E of Stone & Webster, Riving certain break-downs of items and information in regard to that furnished in response to special inquiry of expenditures in connection with the Sidney acquisition (exhibit 6119).
• Extract from letter from files of Stone & Webster, Inc., dated January 26, 1928, from S. P. McFadden (manager Western Public Sen-ice Co., Scottsbluff, Nebr.) to G. H. Clifford (Stone & Webster, Inc.) concerning church contacts of the former (exhibit 6120).
• Extract from letter of December 7, 1932, from Clarence A. Davis (attorney Western Public Service Co.) to G. W. Swift (president Western Public Service Co.) concerning Stanbury, Mo., municipal franchise (exhibit 6121).
• Report of intercorporate relations between companies in the Associated Gas & Electric System, by W. B. Home (exhibit 6131).
• Report by William J. Warmack on the accounts and records of General Gas & Electric Corporation (of the Associated Group) (exhibit 6132).
• Chart of General Gas & Electric Group showing companies as of December 31, 1928 (exhibit 6133).
• Letter dated April 18, 1934, from J. P. Campbell, treasurer, W. S. Barstow & Co., Inc., to Federal Trade Commission, concerning companies controlled by that concern (exhibit 6134). Annual Reports of General Gas & Electric Corporation for years 1928 to 1933, inclusive (exhibits 6135 to 6140. both inclusive).
• Identical leaflet and clipping appearing in Washington Post of August S, 1934, signed by Associated Gas & Electric System, entitled ” Taking Pay Paul” from Peter to (exhibit 6141).
• Photostats of circulars offering securities of the General Gas & Electric Corporation (exhibits 6142, 6143, 6144)
• Extracts from schedule E of Stone & Webster, Inc., the Massachusetts corporation, and after June 26, 1929, the Delaware corporation of the same name (exhibit 6145).
• Letters of various dates of 1931 and 1934 containing the terms of an exchange involving stock of General Gas & Electric Co. (exhibit 6145-A).
• Photostat copy of detailed account of newspaper advertising by Puget Sound Power & Light Co. for 1926-33 (exhibit 6146).
• Break-down of schedules E-3 and E-4 of Gulf States Utilities Co., Texas and Louisiana divisions, for 1925-30, inclusive (exhibit 6147).
• Extracts from First Annual Report of the Public Relations Department, Management Division, Stone & Webster, Inc., for year ended December 31, 1920 (exhibit 6148).
• Letter from Stoue & Webster, December 8, 1926, to Samuel P. MacFadden (manager Western Public Service Co.), concerning proposed purchase by Western Public Service Co. of the plants of Alma and Orleans, Nebr. (exhibit 6122).
• Copy of letter, July 30, 1927, by G. H. Clifford to S. P. MacFadden (manager Western Public Service Co.), concerning activities of the Doherty organization in “Julesburg and Big Springs (exhibit 6123).
• Tri-County Project “, Nebraska, copy of letter giving details of project by S. P. MacFadden (manager Western Public Service Co.) to Stone & Webster, Inc., under date of November 11, 1926 (exhibit 6124).
• Copy of letter of December 17, 19226, by Samuel P. MacFadden (manager Western Public Service Co., Scottsbluff, Nebr.) to Stone & Webster, Inc., Boston, Mass., concerning municipal ownership (exhibit 6125).
• Report by Charles R Taylor (Federal Trade Commission) on the examination of accounts and records of the Virginia Electric ft Power Co., a subsidiary of the Engineers Public Service Co. of Delaware, of the Stone & Webster Group (exhibit 6126).
• Virginia Electric & Power Co., extracts of minutes of meetings of Incorporators and directors of said company from June 30, 1909, to July 26, 1909, including the reorganization plan and agreement, and modification thereof (exhibit 6127).
• Bowling Green Co., trustee, versus Virginia Passenger & Power Co. et al. Decree of foreclosure and sale in the Circuit Court of the United States forthe Eastern District of Virginia (exhibit 6128).
• Report by Thomas A. Thibodeau (Federal Trade Commission) on the examination of the accounts and records of Stone & Webster, Inc., management division (a division of Stone & Webster, Inc.) (exhibit 6129).
• Report by Thomas A. Thibodeau (Federal Trade Commission) on the examination of the accounts and records of Stone & Webster Service Corporation (exhibit 6130).
• Correspondence, memoranda, etc., covering propaganda and other activities within the Stone A Webster System, including opposition to municipal owner ship and attempts to acquire, and acquisitions of, municipal plants (exhibits 6149 to 6181, both inclusive).
• Copy of agreement between the Virginia Railway & Power Co. Syndicate com posed of Stone & Webster, Chase Securities Corporation, Blair & Co., Inc., and the Murylln Corporation, all of New York City, and Three States Realty Co., concerning the sale of land flooded by construction of abutment dam, dated June 12, 1925 (exhibit 6182).
• Correspondence and memoranda from the flies of Stone & Webster and Stone & Webster companies relating to various matters of propaganda and publicity and to municipal situations at various points, including Seattle, Wash. ; Haverhill, Mass. ; Laramie, Wyo. ; certain Nebraska cities ; Lafayette, La. ; and Jacksonville, Fla. (exhibits 6183 to 6188, both inclusive).
• Extracts from minutes of meetings of special executive committee held July 11, 1927, December 9, 1927, and March 12, 1928, relating to publicity work, report of A. P. Roberts (consulting engineer), city of Seattle municipal plant, Voters Information League, expenditure of $60,000 annually for 3 years by Puget Sound Power & Light Co. to be contributed to the Voters Information League and financing of Roberts’ report, acceptance of proposal by Stone & Webster, Inc., as to design and construction services and with reference to contracts with Stone & Webster, Inc., with reference to management and engineering services (exhibit 6189).

Since the last interim report the field work on an important holding company and on its principal sub-holding and operating company was completed.

Field-accounting examinations were continued on four large electric operating companies and on two natural-gas companies. Accounting work was continued also on a large electric holding company and its most important operating subsidiaries. An examination was begun of an investment company which floated the securities of an important electric and gas group, the top companies of which are now in receivership or being liquidated.

The progress of the work on the power and gas inquiry is being impeded somewhat by the necessity of temporary transfer of personnel to the textile inquiry, begun the latter part of September under Executive order of the President dated September 26, 1934, which order directed this Commission to give priority to the textile inquiry.

The next hearing is scheduled for October 16 and will be a report and testimony on Electric Management & Engineering Co., a bankrupt corporation of the Insull group.

Transmitted herewith is the transcript of testimony of the hearings from September 16, 1934, to October 15, 1934 (pp. 44311 to 45192, both inclusive), together with exhibits introduced as above described (exhibits 6014 and 6085 to 6189, both inclusive).

By direction of the Commission. Garland S. Ferguson, Jr., Chairman.