FEDERAL TRADE Commission,
Washington, March 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 fifty-first interim report, covering the period from February 16, 1933, to March 15, 1933, is respectfully submitted.

Public hearings were held February 15, 16, 24, 25, and March 7, 8, 9, 10, 14, and 15, 1933. At the hearings reports and testimony based thereon were presented relating to further companies of the Insull group and relating to United Gas Improvement Co. The witnesses called were: Walter E. Long and Philip H. Gadsden, vice presidents of United Gas Improvement Co., and the following, all members of the Commission’s economic staff: William H. England, LeClaire Hoover, Judson C. Dickerman, Carl H. Depue, Edwin T. Harris, Harry H. Carter.

The reports presented included the following:

• Report by Carl H. Depue on Insull, Son & Co., Inc. (Based on auditors’ report to receivers.) (Exhibit 5265.)
• Report on Carl H. Depue on Public Service Trust. (Based on auditors’ report to the receivers of Insull Utility Investments, Inc.) (Exhibit 5267.)
• Report by William H. England on Seaboard Public Service Co. (Based on auditors’ report to receivers.) (Exhibit 5270.)
• Report by Carl H. Depue on Second Utilities Syndicate, Inc. (Based on auditors’ report to receivers.) (Exhibit 5271.)
• Report by Edwin T. Harris on examination of accounts and records of the United Gas Improvement Co., with accompanying exhibits. (Exhibits 5274–5275.)
• Report by Harry H. Carter on interstate transmission of electric energy by companies within the United Gas Improvement Co. group. (Exhibit 5272.)
• Report by Harry H. Carter on interstate transmission of gas by ºniº within the United Gas Improvement Co. group. (Exhibit 5273.)

*These reports and the testimony thereon (pp. 30291 to 30451, inclusive) have been printed in Part 50.

Since the last interim report, field accounting work was continued on 3 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 of the apex investment companies in a large holding company group. A report on the properties, organization, and operations of one group of companies in a large holding company group was written, and a report on inter-corporate relations was made ready to be placed in the record on another large holding company group. Accounting reports on 10 operating companies were completed and reports are being written on 20 other operating companies.

Hearings are now in progress on the United Gas Improvement Co. Hearings will be resumed on March 17 when a report on inter-corporate relations of the United Corporation will be presented.

Transmitted herewith is the transcript of the testimony at the hearings from February 15 to March 15, both inclusive (pp. 30291 to 31308, both inclusive), together with exhibits introduced (nos. 5265 to 5296, both inclusive).

By direction of the Commission. CHARLES H. MARCH, Chairman.

FEDERAL TRADE Commission,
Washington, April 19, 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 sub-holding and hold companies, 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 there with the stenographic report of the evidence taken, this fifty-second interim report, covering the period from March 16th to April 18th, 1933, is respect fully submitted.

Public hearings were held March 16, 17, 21, 22, 23, 24, 28, and April 12, 13, 14, and 18, 1933, at which reports and testimony, were presented relating to Central Public Service Corporation, the United Corporation, Associated Gas & Electric System properties, and two supplemental reports on companies of the Columbia Gas & Electric group.

Witnesses called were: Edward Reynolds, Jr., vice president, Columbia Gas & Electric Corporation; Phillip H. Gadsden, vice president, the United Gas Improvement Co.; Randall J. LeBoeuf, Jr., counsel, Niagara Hudson group and the United Corporation; William H. Versfelt, assistant secretary and assistant treasurer, the United Corporation; and the following, all members of the Commission’s economic staff: Judson C. Dickerman, G. A. Stephens, William B. Horne, J. W. Adams, Robert J. Ryder.

Reports presented included the following:

• Report by W. B. Horne on intercorporate relations among companies comprising the Morgan, Carlisle, and Thorne-Loomis (Bonbright & Co.) group of the United Corporation group. (Exhibit 5297.)
• Report by J. C. Dickerman on important characteristics of the physical properties of the gas and utilities in which the United Corporation has important investment interests. (Exhibit 5305.)
• Chapter 5 of the report on Cincinnati Gas Transportation Co. of the Columbia Gas & Electric Co. group, covering investments, earnings, and rates of return. Prepared by J. W. Adams. (Exhibit 5239A.)
• Report by J. C. Dickerman on properties, organization, and operations of Associated Gas & Electric System and on the properties and operations of its Pennsylvania Electric Co. group. (Exhibit 5306.)
• Report by G. A. Stephens on Columbia Gas & Electric Corporation’s acquisition of control of American Fuel & Power Co. and its subsidiaries, with accompanying appendixes. (Exhibit 5307.) Report by R. J. Ryder on examination of accounts and records of Central Public Service Corporation. (Exhibit 5322.)

Since the last interim report, field accounting work was continued on 3 holding companies, 1 sub-holding company, 1 securities company, 6 operating companies, and an investment company of a large holding company group. Field accounting work was begun on a large holding company group and on a finance corporation. Field accounting work was completed on the operating expenses of a large holding and servicing company, 2 sub-holding companies and on 1 operating and distributing natural gas company. Accounting reports were completed on 1 holding company and on 9 operating companies.

Hearings are now in progress on the Central Public Service Corporation group. On April 25th hearings are scheduled to begin on Cities Service Securities Co.

Transmitted herewith is the transcript of the testimony of the hearings from March 16 to April 18, 1933, both inclusive (pp. 31260 to 32142, both inclusive), together with exhibits introduced (nos. 5280 to 5324, both inclusive).

By direction of the Commission. CHARLES H. MARCH, Chairman.

Federal Trade Commission,
Washington, May 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 fifty-third interim report covering the period from April 18 to May 15, 1933, is respectfully submitted.

Public hearings were held April 18, 19, 20, 21, 25, 26, 27, 28, and May 1, 2 (2 hearings), 3, and 4, 1933, at which reports and testimony were presented relating to Central Public Service Co.” and Southern Cities Public Service Co., both of the Central Public Service or A. E. Peirce group, the Cities Service Securities Co., a securities marketing company of the Cities Service (H. L. Doherty) group, and the St. Lawrence Securities Co. and the Utica Gas & Electric Co., both of the Niagara Hudson group.

The witnesses called were:

• William B. S. Winans, of the Cities Service Co.;
• W. A. Roberts, counsel for the Public Utility Commission of the District of Columbia;
• Arthur J. Wood; and
• Sidney T. Fleming of Brunswick, Ga.

and the following, all members of the Commission’s economic staff:

• Thomas W. Mitchell,
• Robert J. Ryder,
• Charles R. Taylor,
• Melbourne C. Steele,
• Thomas A. Thibodeau,
• Harry H. Carter.

Reports presented included the following:

• Report by Thomas W. Mitchell on examination of accounts and records of Cities Service Securities Co. (Exhibit 5334.)
• Report by Robert J. Ryder on examination of accounts and records of Central Public Service Co. (Exhibit 5332.) *
• Report by Melbourne C. Steele on examination of accounts and records of Southern Cities Public Service Co. (subsidiary of Central Public Service Corporation). (Exhibit 5340.)
• Report by Charles R. Taylor on examination of accounts and records of Utica Gas & Electric Co. (subsidiary of Mohawk Hudson Power Corporation – Niagara Hudson Power Corporation group). (Exhibit 5337.)
• Report by Thomas A. Thibodeau on examination of accounts and records of St. Lawrence Securities Co. (subsidiary of Niagara Hudson Power Corporation). (Exhibit 5335.)
• Report by Harry H. Carter on interstate transmission of electric energy and gas by Central Public Service Corporation. (Exhibit 5333.)

* Printed in part 52, Senate Document 92, 70th Cong. 1st sess.

Since the last interim report, field accounting work was continued on 4 holding companies, 3 sub-holding companies, 1 securities company, 6 operating companies, a finance corporation, and an investment company of a large holding-company group. Field work was begun on one distributing and operating natural-gas company and completed on one gas company.

Accounting reports on natural-gas companies were completed on a natural-gas sub-holding company, 3 affiliated gas-distributing companies, 1 pipe-line company and a gas-producing company. Accounting reports were also completed on a construction company and two electric sub-holding companies.

The inspection of physical properties and operations of a large holding-company group was begun.

Hearings will be resumed on May 15, when reports on various Connecticut companies of the United Gas Improvement Co. will be presented.

Transmitted herewith is the transcript of the testimony of the hearings from April 18 to May 15 (pp. 32143 to 33121, both inclusive), and the testimony of the hearings on the St. Lawrence Securities Co. (pp. S. 1 to S. 129, inclusive) and Utica Gas & Electric Co. (pp. U. 1 to U. 124, inclusive), together with exhibits introduced (nos. 5325 to 5340, both inclusive).

By direction of the Commission. CHARLES H. MARCH, Chairman.

Federal Trade Commission,
Washington, June 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 fifty-fourth interim report, covering the period from May 15 to June 15, 1933, is respectfully submitted.

Public hearings were held May 15, 16, 17, 18, 19, 20, 23, June 5, 6, 7, 8, 9, 10, 12, 13, and 14, 1933, at which further reports and testimony were presented relating to the United Gas Improvement group (including Connecticut companies), the United Corporation, Utilities Power & Light Corporation group, and Niagara-Hudson group (Niagara, Lockport & Ontario Power Co.).

The witnesses called were: Charles L. Campbell, vice president, Connecticut Electric Service Co., and other Connecticut companies; E. G. Windle, assistant vice president, United Gas Improvement Co. ; Daniel H. Bender, vice president and treasurer, Utilities Power & Light Corporation; and the following, all members of the Commission’s economic staff: Edwin T. Harris, Kenneth A. Miller, Harry H. Carter, Thomas W. Mitchell, Harry O. Day.

The reports and exhibits put into the record were:

• Report (vol. 1) by Edwin T. Harris on examination of accounts and records of certain subsidiaries of the United Gas Improvement Co., with accompanying exhibits and appendices, covering the following companies: American Gas Co. (New Jersey), United Engineers & Constructors, Inc., The Connecticut Electric Syndicate. (Exhibit 5341.)
• Report (vol. 2) by Edwin T. Harris on examination of accounts and records of certain subsidiaries of the United Gas Improvement Co., with accompanying exhibits and appendices, covering the following companies: Connecticut Electric Service Co., Connecticut Light & Power Co., Eastern Connecticut Power Co., The Waterbury Gas Light Co., Rockville-Willimantic Lighting Co. (Exhibit 5342.)
• Decision of the Public Utilities Commission of Connecticut in the matter of the petition of James R. Rabbett as to rates and charges of the Northern Connecticut Power Co. for electric gas and water service in the towns of Windsor
• Report by Thomas W. Mitchell on the United Corporation re cash and securities received from organizers and costs thereof to organizers. (Exhibit 5344.)
• Statement of current expenses for year 1929, and current expenses and taxes, year 1932, of the United Corporation, and current expenses and taxes, vcar 1932, of New York United Corporation. (Exhibit 5345.)
• Report by LeClaire Hoover and Harry O. Day on examination of  accounts and records of Utility Power & Light Corporation with accompanying exhibits (exhibit 5346A) and appendices to this report(exhibit 5346B).
• Report by Harry H. Carter on interstate transmission of electric energy and gas by Utilities Power & Light Corporation, covering the following companies:

1. Central States Power & Light Corporation,
2. East Dubuque Electric Co.,
3. Interstate Power Co. (Delaware),
4. Interstate Power Co. of Nebraska,
5. Interstate Power Co. of North. Dakota,
6. Interstate Power Co. of Wisconsin,
7. Laclede Power & Light Co.,
8. Missouri Electric Power Co.,
9. Newport Electric Corporation,
10. Cedar Light & Power Co.,
11. Central Light & Power Co.,
12. Derby Gas & Electric Co.,
13. Eastern Iowa Electric Co.,
14. Eastern New Jersey Power Co.,
15. Indianapolis Power & Light Co. (Exhibit 5347.)

• Report by Lewis G. Prichard on examination of accounts and records of Niagara, Lockport & Ontario Power Co. (Niagara-Hudson group). (Exhibit 5348.)
• Six samples of advertising issued for Niagara, Lockport & Ontario Power Co. by Buffalo, Niagara & Eastern Power Corporation. (Exhibit 5349.)

Since the last interim report, field accounting work was continued on 4 holding companies, 1 sub-holding company, 1 securities company, 6 operating companies, 1 distributing and operating natural-gas company, a finance corporation, and an investment company of a large holding company group. The examination of accounts and records of 2 sub holding companies was completed and field work was begun on 2 other sub-holding companies.

Accounting reports on 1 sub-holding and on 1 operating company were completed. A report on interstate transmission of electricity and gas of a large holding company group and the inter-corporate relations of another large holding company group were also completed.

Hearings are scheduled for June 16, when Charles A. Munroe will be called to testify about Laclede Gas Co. matters, and Daniel H. Bender will be recalled for further questioning. Further hearings on companies of the United Gas Improvement group will begin on June 27. Within the next 30 days it is expected that report will be presented on the Arkansas Natural Gas Corporation, of the Cities Service group.

Transmitted herewith is the transcript of the testimony from May 15 to June 15 (pp. 33122 to 34671, both inclusive), together with exhibits introduced (nos. 5341 to 5349, both inclusive).

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

FEDERAL TRADE COMMISSION,
Washington, July 21, 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 minutes specified in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this fifty-fifth interim report covering the period from June 16 to July 15, inclusive, is respectfully submitted.

Public hearings were held on June 16, 21, 22, 23, 27, 28, 29, 30, and July 6, 1933, at which further reports and testimony were presented relating to the United Gas Improvement Co. group (including Connecticut companies) and Arkansas Natural Gas Service Co. of Colorado, and Lakeside Construction Co.

The witnesses called were:

• Charles A. Munroe,” former chairman of board of directors of Laclede Gas Light Co.;
• Daniel H. Bender,” vice president and treasurer, Utilities Power & Light Corporation;
• Richard A. Herminghaus,’ assistant to vice president and assistant treasurer, Utilities Power & Light Corporation;
• W. B. S. Winans, City Service Co.;
•  J. Henry Roraback, president, Connecticut Light & Power Co.;
• Clarence G. Willard, secretary, Connecticut Committee on Public Service Information;
• W. E. Long, vice president, The United Gas Improvement Co.;
• Roger E. Barnes, Walter B. Wooden, J. K. Arnold, and A. W. Wilcox, all members of the Commission’s staff.

The reports and exhibits put into the record were:

• Report by Roger E. Barnes on examination of accounts and records of Arkansas Natural Gas Corporation and subsidiaries. (Exhibit 5351.)
• Statement of the consolidated fixed capital and rate of return earned by Arkansas Natural Gas Corporation in 1928, 1929, and 1930. (Exhibit 5352.)
• List of common-stock holders of Laclede Gas Light Co. (Exhibit 5350.)
• Maps of oil concerns and pipe-line system of Arkansas Natural Gas Corporation and subsidiaries. (Exhibits 5353 and 5354.)
• Circular letters and advertising circulars of the Arkansas Natural Gas Corporation and its securities issued. (Exhibits 5355-5363, inclusive.)
• Lists of power companies and membership dues paid to Connecticut Committee on Public Service Information, 1928 through 1933, inclusive. (Exhibit 5364.)
• Information for the years ending April 1, 1931, 1932, and 1933. (Exhibits 5365 through 5365B.)
• Vouchers and letters re the payment by Connecticut Light & Power Co. for professional services and expenses. (Exhibits 5366 through 5366B, inclusive.)
• Extracts from reports made by companies within the United Gas Improvement Co. system in answer to schedule E of the Federal Trade Commission’s questionnaire. (Exhibit 5367.)

* The testimony of these witnesses is printed in pt. 54.

• Letter dated April 5, 1925, from T. E. Mitten to Messrs. Joseph D. McCall and Walter H. Johnson, of Philadelphia Electric Co. recessation of campaign to secure proxies of stock to control Philadelphia Electric Co. (Exhibit 5368.)
• Letter dated June 8, 1928, from Carl W. Riddick (“National Republican”) to P. H. Gadsden, of the United Gas Improvement Co. (Exhibit 5369.)
• Copy of the act incorporating the Rocky River Power Co., approved June 23, 1905. (Exhibit 5370.)
• Reports by J. K. Arnold on inter-corporate relations within the United Gas Improvement Co. group. (Exhibits 5371 and 5372.)
• Report by Roger E. Barnes on examination of accounts and records of Public Service Co. of Colorado (a subsidiary of City Service Co.). (Exhibit 5373.)
• Statement of the average fixed capital investment and rate of return earned by Public Service Co. of Colorado. (Exhibit 5374.)
• Statement of the common-stock equity after deducting write-up, discounts, and uncollected earnings as of December 31, 1930, of Public Service Co. of Colorado. (Exhibit 5375.)
• Minutes of meetings of board of directors of Colorado Power Co. (Exhibit 5376.)
• Letter from Dean Kirby to Frank Jameson, of Public Service Co. of Colorado, dated October 14, 1931, and the reply dated October17, 1931, re advertising. (Exhibits 5377A and 5377B.)
• Letter of R. J. Gentry dated June 12, 1930, to Clare N. Stannard, vice president of Public Service Co. of Colorado, re publicity, etc.(Exhibit 5378.)
• Advertising circulars of Public Service Co. of Colorado, re securities. (Exhibit 5379.)
• Report of A. W. Wilcox on examination of accounts and records of Lakeside Construction Co. (a subsidiary of Cities Service Co.). (Exhibit 5380.)
• Letter of H. A. Koechling, dated July 5, 1933, to Federal Trade Commission, re stock control of Colorado Interstate Gas Co. (Exhibit 5381.)

Since the last interim report, field accounting work was begun on an important natural gas transportation company and on two securities companies. Field accounting work was continued on 3 holding companies, 4 sub-holding companies, 2 service companies, company, 1 securities 7 operating companies, a finance corporation, and an investment company of a large holding company’s group. The field accounting work was completed on two large holding companies and a sub-holding company. An inspection of the physical properties and operations of a large natural-gas holding company was conducted.

Accounting reports were being prepared on 2 large holding companies, 5 sub-holding companies, 1 construction company, and on 5 operating companies . An accounting report on the cost of performing utility supervision services was completed during the month.

Hearings are scheduled for August 1 on the Buffalo, Niagara & Eastern Power Corporation, a sub-holding company of the Niagara Hudson Power Corporation group. Further hearings on a sub-holding company of the Central Public Service Corporation group are also scheduled for August.

Transmitted herewith is the transcript of the testimony from June 16 to July 15 (pp. 34573 to 35687, both inclusive), together with exhibits introduced (nos. 5350 to 5381, both inclusive).

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

August 18, 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 or the investigation, upon the matters specified in the resolution, and that it transmit therewith the stenographic report of the evidence taken, this fifty sixth interim report covering the period from July 16 to August 15, 1933, inclusive, is respectfully submitted.

Public hearings were held August 1, 2, 3, 8, 9, and 10, 1933, at which reports and testimony were introduced covering the Buffalo, Niagara & Eastern Power Corporation, a subsidiary in the Niagara Hudson Power Corporation group, the Central Gas & Electric Co., of the Central Public Service group, and a report as to the physical properties in which United Corporation has important investment interests.

The witnesses, all from the Commission’s economic staff, were: Frank Buckingham, Judson C. Dickennan, M. C. Steele, and William B. Home.

The reports and exhibits put into the record were:

• Report by Frank Buckingham on examination of accounts and records of Buffalo, Niagara & Eastern Power Corporation (subsidiary holding company of the Niagara Hudson Power Corporation). (Exhibit 5382.)
• Report by Judson C. Dickerman on outstanding characteristics of the physical properties of gas and electric utilities in which the United Corporation has important interests. (Exhibit 5305-A.)
• Companies with which directors of Buffalo, Niagara & Eastern Power Corporation were connected, as shown by Poor’s Register of Directors, 1932 edition. (Exhibit 5383.)
• Report of M. C. Steele on accounts and records of Central Gas & Electric Co. (Central Public Service Co. group). (Exhibit 5384.)
• Tables by M. C. Steele, showing rates of return of Central Gas & Electric Co. on invested and borrowed capital on various bases. (Exhibit 5385-6.)

Since the last interim report, field accounting work was continued on an important natural-gas transportation company, 3 securities companies, 3 holding companies, 4 sub-holding companies, 2 service companies, 7 operating companies, a finance corporation, and an investment company. An inspection of the physical properties and operations of a large natural-gas holding company was completed.

Accounting reports were being prepared on 2 large holding companies, 5 sub-holding companies, 1 construction company, and on 5 operating companies. Hearings will be resumed shortly after Labor Day.

Transmitted herewith is the transcript of the testimony from July 16 to August 15, 1933 (pp. 35688 to 36284, both inclusive), together with exhibits introduced (Nos. 5382 to 5386, both inclusive).

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

FEDERAL TRADE COMMISSION,
Washington, September 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 fifty seventh interim report covering the period from August 16 to September 15, 1933, inclusive, is respectfully submitted.

Public hearings were held on September 11 and 12, 1933, at which the report of L. E. Keifhaber, of the Commission’s economic staff, covering the Barstow group of companies of the Associated Gas & Electric systems was presented (Ex. 5387).

In addition to the report, exhibits 5388–A–B–C were offered in evidence. These were a letter of transmittal and copies of two contracts between the Consumer’s Construction Co. and W. S. Barstow & Co., dated June 1, 1929.

Since the last interim report, field accounting work was completed on an important natural-gas transportation company and its associated and producing company and also on a large natural-gas holding company and its affiliated producing and distributing companies and on one construction company.

An accounting report was completed on a large holding company a report on interstate transmission of electric energy was finished on an important holding company, and a report was also written on the inter-corporate relations between an important bituminous coal-producing company and a large electric holding company.

Accounting reports were being prepared on a large holding company, on 3 sub-holding companies, 2 service companies, a natural-gas pipe-line company, and on 13 operating companies. Engineers’ reports were being written on companies in two holding company groups.

Field work was continued on 2 large holding companies, on 4 sub-holding companies, 8 investment or securities companies, 2 engineering and service companies, on 13 operating companies, and on a finance corporation.

Attention is called to an error which occurred in printing the report on Associated Gas & Electric Co., Senate Document No. 92, Seventieth Congress, first session, no. 45. On page 1403, line 5, the amount should be $266,205,178.12 instead of $178.12 as printed.

Transmitted herewith is a transcript of the testimony covering the above report (pp. 36285 to 36249, inclusive), together with the exhibits named (nos. 5387 and 5388–A–B–C).

By direction of the Commission: CHARLES H. MARCH, Chairman.

Federal Trade Commission,
Washington, October 20, 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 fifty-eighth interim report covering the period from September 16 to October 15, inclusive, is respectfully submitted.

Public hearings were held October 5, 6, and 12, 1933, at which reports and testimony were presented on the .Northern Connecticut Power Co. of the United Gas Improvement Co. group, and on Peabody Coal Co., of the Insull group.

The witnesses were Edwin T. Harris, W. B. Home, and A. M. MacDermott, of the Commission’s staff, and Charles L. Campbell, vice president Northern Connecticut Power Co.

The following exhibits were offered :

• Report by Edwin T. Harris (F.T.C.) on the accounts and records of the Northern Connecticut Power Co., subsidiary of The Connecticut Electric Service Co. of the United Gas Improvement Co. (exhibit 5389) .
• Agreement of merger and consolidation between The Northern Connecticut Power Co., The Connecticut River Co., The Northern Connecticut Light & Power Co., The Thompsonville Water Co., The Stafford Springs Aqueduct Co., and The Somers Electric Co., forming The Northern Connecticut Power Co., January 1926 (exhibit 5390) .
• Letter dated October 3, 1933, from A. D. Coffin to C. L. Campbell, vice president, The Northern Connecticut Power Co., re three agree ments (exhibit 5395).
• Letter dated September 24, 1929, from Utilities Publication Co. (H. J. Gonden, president) to Martin J. Insull, president Middle West Utilities Co., soliciting subscriptions to the Public Service Magazine (exhibit 5396).
• Statement from Utilities Publication Co. (H. J. Gonden, president) to Federal Trade Commission, re municipal ownership survey (exhibit 5397).
• Invoices for copies of Public Service Magazine to Northern Connecticut Power Co. (exhibit 5398).
• Letter dated June 28, 1933, from Robert E. Healy, chief counsel, to J. Henry Roraback, president Connecticut Light & Power Co., New Haven, Conn., re political contributions by various utility corporations with which he was connected, and answer (exhibit 5399-A and B).
• Statement showing payments made by United Gas Improvement Co., by companies, to John P. Connelly for legal services (exhibit 5400).
• Photostatic copies of 17 vouchers of the United Gas Improvement Co., showing payments for legal services and expenses to John P. Connelly (exhibit 5401).
• Photostatic copies of five vouchers of the Philadelphia Electric Co., covering payments to John P. Connelly (exhibit 5402).
• Statement of legal expenditures in re Conowingo project, by companies, by payee and by dates, by various companies in Philadelphia Electric Power group (exhibit 5403).
• Photostatic copies of vouchers of United Gas Improvement Co. for legal services re Conowingo project (exhibit 6404) .
• Statement of the Connecticut Committee on Public Service Information, 52 Whitney Avenue, New Haven, Conn., released March 24, 1933, re: Ontario rate matter (exhibit 5405).
• Letter July 12, 1933, from the United Gas Improvement Co. to Robert E. Healy, Washington, D.C., re services rendered by John P. Connelly (exhibit 5406).
• Report by W. B. Home on inter-corporate relations of Peabody Coal Co. with other companies in the Insull group (exhibit 5407).

Since the last interim report, field work was begun on a large operating company in an important holding company group. Field work was continued on 2 important holding-company groups and on 5 subsidiaries of 1 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 two subsidiaries of important holding-company groups has been completed. Reports on a large electric sub-holding group and on a gas company have been completed. The preparation of accounting reports was continued on a large holding company, on 2 sub-holding companies, 2 service companies, on a natural-gas pipe-line company, and on 11 operating utility companies. Work was continued on engineering reports on two holding-company groups.

Hearings began October 16 on a supplemental report covering the period from September 30, 1930, to April 14, 1932, on the Middle West Utilities Co. (Insull).

Transmitted herewith is the transcript of testimony relating to the above reports (pp. 36430 to 36559, inclusive), together with the exhibits named (nos. 5389 and 5390 and 5395 to 5407, inclusive).

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

Federal Trade Commission,
Washington, November 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 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 fifty-ninth interim report covering the period from October 16 to November 15, inclusive, is respectfully submitted.

Public hearings were held October 16, 17, 18, 19, and November 3 and 4, 1933.

Reports and testimony were introduced covering Adirondack Power & Light Corporation, Municipal Gas Co. of City of Albany, Peoples Gas & Electric Co. of Oswego, and Cohoes Power & Light Corporation (all of which are of the Niagara Hudson group), and a supplemental report on Middle West Utilities Co. (Insull group).

The witnesses were : Lewis G. Prichard, William J. Warmack, and Aaron J. Hughes. The first two witnesses are of the Commission’s staff (Economic Division) while Mr. Hughes was until recently a member thereof but is now with the Tennessee Valley Authority.

The reports and exhibits put into the record were :

• Report by A. J. Hughes on the examination of the accounts and records of the Middle West Utilities Co. (supplemental report to Commission’s exhibits 4982 and 5256) for period from September 30, 1930, to April 14, 1932. (Exhibit 5408.)
• Appendixes to report (exhibit 5408) on examination of accounts and records of Middle West Utilities Co. by A. J. Hughes (Federal Trade Commission) for period from September 30, 1930, to April 14,1932. (Exhibit 5409.)
• Exhibits to report (exhibit 5408) by A. J. Hughes on examination of accounts and records of Middle West Utilities Co. (Exhibit 5410. )
• Extract, entitled ” Receipts of American Taxpayers’ League “, from hearings before a subcommittee of the Committee on the Judiciary, United States Senate, Seventy-first Congress, first session, pursuant to Senate Resolution 20 (Caraway committee). (Exhibit 5411. )
• Report by Lewis G. Prichard on the examination of the accounts and records of the Adirondack Power & Light Corporation (a constituent company of the New York Power & Light Corporation). (Exhibits 5412.)
• Report by Lewis G. Prichard on the examination of the accounts and records of Peoples Gas & Electric Co., of Oswego (subsidiary of Oswego River Power Corporation) with accompanying tables and appendixes. (Exhibit 5413.)
• Report by William J. Warmack on the examination of the accounts and records of Municipal Gas Co., of the city of Albany (a constituent company of New York Power & Light Corporation, which is a subsidiary of Mohawk Hudson Power Corporation), with accompanying exhibits and appendixes. (Exhibit 5414.)
• Report by William J. Warmack on the examination of the accounts and records of Cohoes Power & Light Corporation (a constituent company of New York Power & Light Corporation, which is a subsidiary of Mohawk Hudson Power Corporation), with accompanying exhibits and appendixes. (Exhibit 5415.)

Since the last interim report field work was continued on 2 important holding-company groups and on 5 subsidiaries of 1 of the groups and on 5 of the other, on 8 investment or securities companies, and on a finance corporation.

The examination of the accounts and records of six subsidiaries of important holding-company groups was completed. An accounting report of an important natural-gas pipe-line company and one of its subsidiaries was also completed.

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

Hearings began today (Nov. 15) on the Midland United Co. and subsidiaries (Insull).

Transmitted herewith is the transcript of the testimony from October 16 to November 16, 1933 (pp. 36560 to 37112, inclusive), together with the exhibits introduced as above described (nos. 5408 to 5415, both inclusive).

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

FEDERAL TRADE COMMISSION,
Washington, December 18, 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 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 there with the stenographic report of the evidence taken, this sixtieth interim report covering the period from November 16 to December 15, inclusive, is respect fully submitted.

Public hearings were held November 15, 16, 17, 22, 23, 24, 27, 28, and 29 and December 1 and 2, 1933. Reports and testimony were introduced covering the Midland United Co. and Midland Utilities Co. and their subsidiaries (Insull group) and the Northern New York Utilities, Inc. (Niagara-Hudson group). There was also introduced much material covering the propaganda and publicity activities and expenditures of the Middle West (Insull) Utilities group.

The witnesses, all of the Commission’s staff, were Aaron J. Hughes Ernest R. Lucas, Ambrose M. McDermott, William B. Horne, and John S. Biggs.

The reports and exhibits put into the record were:

• Report (in three parts) by Aaron J. Hughes on the examination of the accounts and records of the Midland United Co. and Midland Utilities Co., their sub # companies, with accompanying exhibits and appendixes. (Exhibits 5416-7–8.)
• Chart of Midland United Co. principal subsidiaries as of December 31, 1931. (Exhibit 5419.)
• Letter dated October 19, 1932, from Arthur Anderson & Co., to the board of directors of Midland United Co., Chicago, Ill., regarding advances of moneys to officers and employees of Midland United Co. and affiliated companies and interests. (Exhibit 5420.)
• Minutes of meeting, October 29, 1932, of the executive committee of the board of directors of Midland United Co. (Exhibit 5421.)
• Balance sheet at December 31, 1932, Middle West Utilities Co., prepared from receiver’s accounts and restated to reflect capital-stock liability and deficit (omitting receiver’s equity account). (Exhibit 5422.
• Report by William B. Horne on inter-corporate relations between companies in the Midland United group. (Exhibit 5433.)
• Report by Ernest R. Lucas on examination of books and records of the Northern New York Utilities, Inc., with exhibits and appendixes. (Exhibits 5549 and 5550.) .
• Additional material put out by E. Hofer & Son, Portland, Oreg., and information relating thereto. (Exhibits 5424–5–6.)
• Two volumes of synopses and extracts from schedules E of the Middle West Utilities group showing expenditures for advertising and other publicity, interests in newspapers; contributions to associations and other contributions; attorneys’ fees; payments to institutions of learning, to editors, to newspaper men and other writers; and partial list of talks made, covering SS companies of this group. (Exhibits 5427–5427A.)
• Memorandum showing ownership, officers, and directors of the Utilities Research Commission, Inc. (Exhibit 5428.)
• Memorandum of Aaron J. Hughes regarding purchase of Federal Electric Co. stock by Middle West Utilities Co. (Exhibit 5429.)
• Material concerning “Old Counselor ” radio programs by Halsey, Stuart & Co. (Exhibit 5430.)
• Letters from Rudolph Guenther-Russell Law Co. regarding advertising bought by Middle West Utilities Co. with pertinent samples. (Exhibit 5431.)
• Selections from files of various companies of the Middle West Utilities groups of publicity material and correspondence relating to it. (Exhibits 5432–5548, 5551–5553, and 5556–5562, inclusive.)
• Harvard University Graduate School of Business Administration studies of certain electrical systems in Connecticut, Illinois, Alabama, and Ontario, paid for by utilities companies. (Exhibit 5554.)
• Memorandum agreement between Central & South West Utilities Co. and the Fairbanks-Morse Co. to refrain from competing in sales of electrical plants and equipment. (Exhibit 5555.)Since the last interim report field work and the preparation of reports were continued on 7 holding-company groups, including 24 holding, sub-holding, investment, securities, and operating companies (including 2 natural gas pipe-line companies).

  Hearings will be resumed December 20, when a report on Lexington Water Power Co. and Broad River Co. of the Associated Gas & Electric Co. group will be presented.

  Transmitted here with is the transcript of the testimony from November 16 to December 15, 1933 (pp. 37.113 to 37775, inclusive), together with the exhibits introduced as above described. (Exhibits 5416 to 5562, both inclusive.

By direction of the Commission: CHARLES H. MARCH, Chairman.