FEDERAL TRADE COMMISSION
October 15, 1935.
To the Senate of the United States:

Eighty-first interim report covering the period from September 16 to October 15, 1935, inclusive, is respectfully submitted. VOLUME 81 LINK

Public hearings were held September 26 and 27, and October 7, 9, and 10, 1935.

Reports and testimony presented at the above hearings related to the following companies and matters:

• Northern Natural Gas Co. and subsidiaries.
• Utilities Power & Light Corporation (schedules E).
• Granite Trading Corporation (formerly known as “G. L. Ohrstrom & Co., Inc.”).
• Federal Water Service Corporation (of Ohrstrom group).
• Power, Gas & Water Securities Corporation (of Ohrstrom group).
• Further evidence re Cleveland municipal system.
• Further evidence as to British thermal unit content of gas.

The witnesses, of the Commission’s staff, were H. H. Carter; Arthur E. Lundvall; Thomas W. Mitchell; Arthur C. Harper; John H. Crabtree ; A. M. McDermott ; Elmer R. Weaver, chemist of United States Bureau of Standards; Edward James Kenealy, electrical engineer, Cleveland municipal plant; John F. Merriam, assistant secretary Northern Natural Gas Co.

The reports and exhibits put into the record were:

• Extensive excerpts from minutes of meetings of stockholders, boards of directors and executive committees, and of various journal entries, income accounts, balance sheets, annual reports, charters, bylaws, and” other material of various companies of the Niagara-Hudson group. (Not sent for printing.) (Exhibits 6341 to 6360 and sub-numbers, both Inclusive )
• Report by Harry H. Carter (Federal Trade Commission) on the interstate transmission of gas by the Northern Natural Gas Co. system, exhibit 6361).
• Report by Andrew W. Wilcox (Federal Trade Commission) on the examination of the accounts and records of Northern Natural Gas Co. and subsidiaries, with exhibits and appendixes. Exhibits 6362 to 6364, both inclusive.
• Extracts from schedules E furnished by the Utilities Power & Light Corporation (exhibit 6365).
• Letters concerning conference on report of operations of G. L. Ohrstrom & Co., Inc., and reply (exhibits 6366 A and B).
• Report by Thomas W. Mitchell (Federal Trade Commission) and Anna B. Lechner (Federal Trade Commission) on operations of G. L. Ohrstrom & Co., Inc. (Granite Trading Corporation since Dec. 31, 1931), in promoting, financing, and marketing securities of certain electric and natural-gas utility operating and holding companies, as follows: Peoples Light & Power Corporation, American Natural Gas Corporation, Oklahoma Natural Gas Corporation, Southern Kansas Gas Co., Tri-Utilities Corporation, Southern Natural Gas Corporation (exhibit 6367).
• Graphic chart of market activities of G. L. Ohrstrom & Co. (exhibit 636S).
• Report by Arthur C. Harper (Federal Trade Commission) of the examination of accounts and records of Federal Water Service Corporation (exhibit 6369).
• Report by John H. Crabtree (Federal Trade Commission) of the examination of accounts and records of Power, Gas & Water Securities Corporation (exhibit 6370).
• Correspondence, reports, and documents re heating and British thermal unit values and standards for gas, from files of the United States Bureau of Standards and of the American Gas Association (exhibits 6371 to 6384, inclusive).
• Correspondence and memorandum relating to Cleveland municipal plant, and balance sheet, dated July 31, 1035 (exhibits 6385 to 6388, inclusive).

Since the last interim report, accounting reports were completed on a large interstate natural-gas pipe-line company, on a natural gas holding company, on an important water holding company, with particular reference to its transactions with electric and natural -gas companies, and on a brokerage concern handling the securities of numerous electric and natural-gas companies. A report was being checked on an important natural gas holding company and on a large holding company engaged in the electric, natural gas, manufactured gas, petroleum, and other business activities covering the analysis of security issues, expenses, earnings, and surplus. Accounting reports were also being checked on 2 natural gas producing companies, 2 management companies, 3 natural-gas pipe-line companies, a company distributing natural gas in the Pittsburgh area, and a company distributing natural gas in about 250 communities in the Southwest. Two reports on interstate transmission of natural gas were also being checked. An engineering report on an important natural-gas holding company group was nearing completion, and an accounting report on large electric company group was almost completed.

For companies operating from the Appalachian natural-gas field accounting reports were being written on an important producing, transporting, and distributing company ; on 4 large pipe line and distributing companies, including 6 producing and a construction company in one large natural-gas group, on an important pipe line and distributing system and its subsidiary producing company ; on 2 large natural-gas pipe-line systems in a third group involving 4 transmission companies, 4 affiliated distributing companies, and an important producing company. Accounting reports were also being prepared on two important distribution companies selling mixed, manufactured, and natural gas, the latter being purchased from an important pipe-line system reaching to the Atlantic seaboard.

For the Rocky Mountain region reports were being written on a natural-gas holding company including the following subsidiaries, i producing company, 1 pipe-line company, and 4 distribution companies, and on another group including the holding company, a subsidiary engaged in transmission and wholesale distribution of natural gas and 3 retail distributing companies.

For transmission of natural gas north and east from the Texas Panhandle, Oklahoma, and Kansas, accounting reports were being written on an important holding-company group including about 20 subsidiaries engaged in different branches of the natural-gas business, from production through retail distribution, and on another holding company and its transmission system.

For companies operating from Texas and the Southwest accounting reports were being written covering, in one large system, a sub-holding company, a large producing and transporting company, and 2 important distributing systems; on an important sub-holding company engaged in producing, transporting, and distributing natural gas, including 4 subsidiary distributing companies, and a separate report was being prepared on another subsidiary company engaged in producing, transmitting, and distributing natural gas and other reports were being prepared on another group including the top holding company and 2 of its subsidiaries engaged in producing and transporting natural gas, and also on another company which distributes natural gas.

From the gas fields of northern Louisiana accounting reports were being written on a company engaged in producing natural gas and on a natural-gas pipe-line company in one group and on a holding company, a management company, and a producing and pipe line company and their predecessors in another company group.

Field accounting, economic, and engineering examinations were all terminated during September (mostly as of the 15th), and the Commission’s staff has concentrated on writing reports preparatory for public hearings. Part of the staff began the preparation of the summary report to be submitted to the Senate when Congress convenes Transmitted herewith is a transcript of testimony of the hearings from September 16 to October 15, 1935 (pp. 47111 to 47463, inclusive), together with exhibits introduced as above described (exhibits 6341 to 6388, inclusive).

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

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 eighty-first interim report covering the period from September 16 to October 15, 1935, inclusive, is respectfully submitted.

FEDERAL TRADE COMMISSION
November 14, 1935.
The President of the Senate
Washington, D. C.  LINK TO VOLUME 81-A

Dear Sir: Pursuant to Senate Resolution 83, Seventieth Congress, first session, as extended by Senate Joint Resolution 115, Seventy third Congress, second session, there is transmitted herewith the report of the Federal Trade Commission on the publicity and propaganda activities carried on by the various utilities groups and companies as therein indicated.

These activities and expenditures are in addition to (except some overlapping) those conducted through the various utilities associations and committees as reported on in part 71-A.

There is also attached as a part of this report an index to those portions of parts 21-84, inclusive, of the Commission’s interim reports to the Senate which relate to such group and company publicity and propaganda activities. It is desired that this report and index be printed as part 81-A.

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

Shortened Index for 81-A

Group and company propaganda            1
Electric Bond & Share group                  2
Middle West Utilities Co                       32
W. B. Foshay Co. group                        74
Cities Service Co. (H. L. Doherty)        83
The Associated Gas & Electric            105
Central Public Service Co. group         132
Stone & Webster group                        136
United Gas Improvement Co              162
North American Co                             172
North American Light & Power Co.   186
Standard Gas & Electric Co.               193
New England Power Association        202
Commonwealth & Southern Corp       206
Southern Sierras Power Co                 220
Columbia Gas & Electric Corp           222
Niagara-Hudson Power Corp             226
Duke Power Co.                                 229
United Cos. group                              231
G. L. Ohrstrom & Co. group             234
Summary                                            245

Part II

Efforts to influence or control elections                     249
Contributions to Republican National Committee  1824, 1928, 1932    252
Contributions to Democratic National Committee      255

Part III

Index to record on company publicity and propaganda   257

FEDERAL TRADE COMMISSION,
Washington, November 15, 1935.
To the Senate of the United States:

Eighty-second interim report covering the period from October 15, 1935, to November 15, 1935, is respectfully submitted. LINK TO VOLUME 82

Public hearings were held October 29 and 31, and November 1, 2, 4, 5, 6, 7, 8, 9, 12, 13, and 14, 1935. Reports and testimony were presented relating to the following companies:

• Columbia Engineering & Management Corporation and Columbia Engineering Corporation (subsidiaries of Columbia Gas & Electric Corporation).
• Colorado Interstate Gas Co.
• Canadian River Gas Co.
• Mississippi River Fuel Corporation.

Beginning November 6, and still continuing at this date (Nov. 15), hearings are being held to present, by witnesses having first-hand information, the natural-gas and natural-gas pipe-line situation as it exists in the United States today, and to disclose the human as well as the other factors which have brought about the present situation. When these facts have been developed it is proposed to call witnesses from these industries and from persons of standing outside of the industry, including State commissions, to give constructive views for possible remedial legislation, both State and Federal.

The witnesses of the Commission’s staff were: J. A. Austin, Harry A. Babcock, Harry H. Carter, John H. Crabtree, F. F. Garter, W. B. Horne, Emma B. Kistler, A. M. McDermott, and Lewis G. Prichard.

Outside witnesses who also testified were:

• F. H. Lerch, Jr., vice president and treasurer Colorado Interstate Gas Co.;
• Edward W. Arras, employee of William H. Irvine;
• James Lavezzo, liquidating clerk, Clark, Childs & Co.;
• M. C. Hoffman, Uhlman & Co., members, New York Curb Exchange;
• William H. Irvine, broker, formerly with W. S. Banks & Co.;
• John H. Kohler, formerly assistant manager of investment securities department,
• Bank of America, now with City Bank Farmers Trust Co.;
• Frank P. Parish, president Missouri Kansas Pipe Line Co.;
• Frank P. Fisher, consulting engineer;
• Lillian C. Hass, secretary to Frank P. Parish;
• Ralph D. Shaw, Winston, Strawn & Shaw, formerly attorneys for Missouri-Kansas Pipe Line Co.;
• William G. Maguire, broker, and stockholder in Missouri Kansas Pipe Line Co.;
• M. J. Dewey, assistant in natural-gas investigation, city of Detroit, Mich.;
• Charles M. Hay, city councilor, St. Louis, Mo., and
• A. Faison Dixon, geologist and engineer, Brokaw, Dixon & McKee.

The reports and exhibits put into the record were:

• Report by Carl H. Depue (Federal Trade Commission) and F. F. Garter (Federal Trade Commission) on the accounts and records of Columbia Engineering & Management Corporation and Columbia Engineering Corporation (subsidiaries of Columbia Gas & Electric Corporation) (exhibit 6389).
• Report to the board of directors of Natural Gas Engineering Corporation upon the position of the corporation as of March 31, 1932 (exhibit 6390).
• Report by Emma B. Kistler (Federal Trade Commission) on interstate transmission of gas by the Colorado Interstate Gas Co. (exhibit 6391).
• Report by Lewis G. Prichard (Federal Trade Commission) on the examination of the accounts and records of Canadian River Gas Co. (exhibit 6392).
• Report by Lewis G. Prichard (Federal Trade Commission) on the examination of accounts and records of Colorado Interstate Gas Co. (exhibit 6393).
• Photostatic copies of requisition and check for $350,000 by the Standard Oil Co. of New Jersey to J. B. Luse, treasurer Colorado Interstate Gas Co. (exhibits 6394 and 6395).
• Affidavits of L. F. McMahon, auditor of Denver Post, and Anne O’Neill, personal secretary to the late F. G. Bonfils, founder of the Denver Post (exhibits 6396 and 6397).
• Copy of bill for legal services rendered Colorado Interstate Gas Co., by Milton Smith, of Smith & Brock, Denver, Colo., dated April 23, 1928 (exhibit 6398).
• Extract from communication sent by Bureau of Internal Revenue to the Colorado Interstate Gas Co., concerning a dispute on alleged over assessment of taxes (exhibit 6399).
• Correspondence between Paul S. Clapp and M. H. Aylesworth (exhibit 6400).
• Transactions in Missouri-Kansas Pipe Line Co. stock in June 1930 (exhibits 6401 through 6406, inclusive, with the exception of exhibit no. 6404, which was not used).
• Report by Lewis G. Prichard (Federal Trade Commission) on examination of accounts and records of Mississippi River Fuel Corporation (exhibit 6407).
• Natural-gas purchase and sales contracts of the Mississippi River Fuel Corporation (exhibit Report 6408). (Not}.} of Harry H. Carter (Federal Trade Commission) on interstate transmission of gas by Mississippi River Fuel Corporation (exhibit 6409).
• Report by W. B. Horne (Federal Trade Commission) on contributions made by H. connected with electric and gas public utilities to the Republican and Democratic National Committees in 1924, 1928, and 1932 as contained in reports to the Clerk of the House of Representatives and to senatorial candidates (1924 to 1934, inclusive), as reported to the Secretary of the Senate (exhibit 6410).
• Documents relating to Missouri-Kansas and Panhandle Eastern Pipe Line Cos. (exhibits 6411 through 6436, inclusive; save exhibits 6423, 6424, 6426, and 6430, which were withheld).
• Papers and copies of correspondence obtained by A. M. McDermott (Federal Trade Commission) from the files of the Cities Service Co. (exhibit 6437).
• Copies of a report made by the so-called “engineering committee”, in August 1934, entitled “A Study of Gas Wastage and the Feasibility of Returning Waste Gas to Reservoir”, relating to the Texas Panhandle field (exhibit 6438).
• Withheld, identified (exhibit 6439).
• Further documents relating to Missouri-Kansas and Panhandle Eastern Pipe Line Cos. (exhibits 6440 through 6446, inclusive).
• Draft of petition to Detroit, Mich., city council for permission to use certain streets for gas mains and to supply industrial institutions (exhibit 6447).
• Letter written by R. S. Lord, president, Hope Engineering Co., to M. B. Moore, of Hudson Motor Co., Detroit, Mich., giving information on Northern Industrial Gas Co. (exhibit 6448).
• Copies of letters written by officers of various industries, at solicitation of M. J. Dewey, urging that city council at Detroit be permitted to supply these industries with natural gas (exhibit 6449).
• Copies of contracts secured from industries in Detroit, Mich., or along lines between Kentucky and Detroit, with the Northern Industrial ?as Co. as the seller (exhibits 6450 through 6463, inclusive).
• Letter of April 18, 1934, from T. B. Gregory to Carl J. Minning; and correspondence in regard thereto (exhibit 6464).
• Progress report, special natural-gas committee, board of alderman, St. Louis, Mo., dated March 22, 1935 (exhibit 6465). (Not printed.)
• Photostatic copies of editorials from St. Louis, Mo., newspapers, various dates in 1934 and 1935, concerning proposed natural-gas franchise for St. Louis (exhibit 6466).

Since the last interim report accounting reports were completed on 2 management companies and on 3 natural-gas pipe-line companies.

Two reports on interstate transmission of natural gas were also completed.

A report was being checked on an important natural-gas holding company, on a large holding company engaged in the electric, natural gas, manufactured gas, petroleum, and other business activities covering the analysis of security issues, expenses, earnings, and surplus, and on a large electric holding company, including its subsidiaries. Ac counting reports were also being checked on two natural gas-producing companies, a company distributing natural gas in the Pittsburgh area, and a company distributing natural gas in about 250 communities. An engineering report on an important natural gas holding company group was nearing completion.

For companies operating from the Appalachian field accounting reports were being written on an important producing, transporting, and distributing company; on 4 large pipe-line and distributing companies, including 6 producing and a construction company in 1 large natural-gas group, on an important pipe line and distributing system and its subsidiary producing company, on 2 large natural-gas pipe-line systems in a third group involving 4 transmission companies, 4 affiliated distributing companies, and an important producing company. Accounting reports were also being prepared on 2 important distribution companies selling mixed, manufactured, and natural gas, the latter being purchased from this important pipe-line system.

Covering the Rocky Mountain region reports were being written on a natural-gas holding company including the following subsidiaries:

1 producing company, 1 pipe-line company, and 4 distribution companies, and on another group including the holding company, a subsidiary engaged in transmission and wholesale distribution of natural gas and 3 retail distributing companies.

From the gas fields of northern Louisiana accounting reports were being written on a company engaged in producing natural gas and on a natural-gas pipe-line company in one group and on a holding company, a management company, and a producing and pipe-line company and their predecessors in another company group.

For transmission of natural gas north and east from the Texas Panhandle, Oklahoma, and Kansas accounting reports were being written on an important holding-company group, including about 20 subsidiaries engaged in different branches of the natural-gas business, from production through retail distribution; and on a holding company and its transmission system.

In Texas and the Southwest accounting reports were being written covering in one large system a sub holding company, a large producing and transporting company and 2 important distributing systems; on an important sub-holding company engaged in producing, transporting, and distributing natural gas, including 4 subsidiary distributing companies, and a separate report on another subsidiary company engaged in producing, transmitting, and distributing natural gas; and on another group including the top holding company, including 2 subsidiaries engaged in producing and transporting natural gas and another which distributes natural gas.

Transmitted herewith is a transcript of testimony of the hearings from October 15, 1935, to November 15, 1935 (pp. 47464 to 48438, inclusive), together with exhibits introduced as above described (exhibits 6389 to 6466, inclusive).

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

Pursuant to Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928 (as extended by S. J. Res. 115, Cong., 73d 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 to transmit therewith the stenographic report of the evidence taken, this eighty-second interim report covering the period from October 15, 1935, to November 15, 1935, is respectfully submitted.

DECEMBER 17, 1935.
To the Senate of the United States:

Eighty-third interim report covering the period from November 15, 1935, to December 15, 1935, both inclusive, is respectfully submitted. LINK TO VOLUME 83

Public hearings were held November 15, 16, 19, 20, 21, 22, 23, 25, 26, and December 2, 3, 4, 5, 6, 9, 10, 11, and 12, 1935. On some of
these dates, as many as three and four hearings were going on simultaneously.

Reports and testimony were presented, relating to the following companies:

• Philadelphia Electric Co.
• Oklahoma Natural Gas Co.
• Kentucky. West Virginia Gas Co.
• Pittsburgh & West Virginia Gas Co.
• Equitable Gas Co.
• Philadelphia Co.
• East Ohio Gas Co.
• United Gas Corporation.
• United Gas Public Service Co.
• Houston Gulf Gas Co.
• Houston Gas & Fuel Co.
• Southern Gas Co.
• Southern Gas Utilities, Inc.
• Northern Texas Utilities Co.
• United Gas System.
• Hope Producing Co.
• Atlantic Seaboard Corporation.
• Cities Service Co. (vol. II). Northern Natural Gas Co.

The witnesses of the Commission’s staff were Roger E. Barnes, Frank Buckingham, Harry H. Carter, John H. Crabtree, C. Risden
Fountain, F. F. Garter, Frank C. Hale, W. B. Horne, Emma B. Kistler, Trammel C. Lacy, Ernest R. Lucas, A. E. Lundvall, Fred H. .
Magruder, A. M. McDermott, H. M. Moler, W. H. Morris, Carl W. Mulcahy, Herbert L. Propst.

The following outside witnesses who also testified Were, mostly, as to the natural-gas and pipe-line situation throughout the United States and included independent producers from various gas fields of the United States. They were called in continuation of the hearing which began on November 6 on the general gas and pipe-line situation and factors producing the present situation. These hearings were concluded on December 12:

• W. M. Anderson, Missouri Public Service Commission.
• B. H. Armstrong, stock broker, Jesup & Lamont.
• James B. Balch, former chairman of the Michigan Public Utilities Commission.
• Walter S. Bemis, Texoma Natural Gas Co. and Natural Gas Pipe Line Co. of America;
• Abraham Berkowitz, attorney. H. W. Bowers, attorney, Charleston, W. Va.
• Walter S. Brewster, stock broker, Russell. BreWster & Co.
• Lloyd D. Burton, Trinity Oil & Gas Co., Chanute, Kans.
• Robert A. Butler, Indianapolis News, Indiana.
• H. O. Caster, executive staff. Cities Service Co.
• K. F. Clardy, attorney and former member Michigan Public Service Commission, Lansing, Mich.
• Douglas Clark, secretary to T. W. Martin, president, Alabama Power Co.
• A. Faison DiXon, engineer, Brokaw, Dixon & McKee. ‘
• Louis E. Fischer, consultant engineer, Northern Natural Gas Co.
• W. S. Fitzpatrick, vice chairman, executive committee, Consolidated Oil Corporation.
• George B. Garner, farmer, Six Lakes, Mich.
• H. L. Gentry, consulting engineer, Jackson, Mich.
• Henry Grewe, Gas Producer, Mount Pleasant, Mich.
• Harry D. Hancock, gas engineer, Cities Service Co.
• George K. Harris, mayor, Williamsport, Pa.
• N. K. Harris, oil and gas business, Coudersport, Pa. J. J. Hedrick, general counsel, Texoma Natural Gas Co.
• J. H. Hillman, Jr., of Missouri-Kansas and Panhandle Eastern Pipe Line Cos.
• Walter M. Hood, secretary, Alabama Power Co.
• Alfred Howell, formerly of American Fuel & Power Co.
• C. Don Hughes, Texoma Natural Gas, Co. and Natural Gas Pipe Line Co. of America.
• Henry G. Hunt, secretary, Oil & Gas Producers, Mich.
• Arthur K. Lee, United Cities Utilities Co.
• C. W. Long, city solicitor, Lima, Ohio.
• John T. Madden, dean of school of commerce, New York University.
• William G. Maguire, broker.
• Stanley Marsh, attorney, Amarillo, Tex.
• W. M. McKnab, McKnab Oil & Gas Co., Winfield, Kans.
• L. F. Meyers, McPherson Oil & Gas Co., Dodge City, Kans.
• Neville Miller, mayor, Louisville, Ky.
• Nelson K. Moody, president, Southwestern Development Co.; president, Amarillo Oil Co.; president, Canadian River Gas Co.
• Raymond C. Moore, State geologist, University of Kansas.
• George L. Ohrstrom, Ohrstrom & Co.
• Christy Payne, formerly vice president, director, treasurer, Standard Oil Co. of New Jersey.
• Earl F. Pye, natural gas producer, Ellisburg, Pa.
•  J. French Robinson, vice president, Peoples Natural Gas Co., Columbia Natural Gas Co., Belmont Quadrangle Drilling Corporation, and manager of the New York Natural Gas Corporation.
• J. W. Sanford. natural gas producer, Ellisburg, Pa.
• George H. Shaw, Lee, Shaw & McCreery, and general counsel, Public Service Co. of Colorado, prior to 1927.
• John W. Smith, president, city council, Detroit, Mich.
• W. J. Sovereign, Alladin Co., Bay City. Mich,
• P. C. Spencer, attorney, Consolidated Oil Corporation.
• Frank H. Sullivan, attorney for Mississippi River Fuel Corporation.
• C. E. Updegraif. gas producer, Williamsport, Pa.
• James A. Waechter, attorney, St. Louis, Mo.
• Elsie V. Walker, formerly with Missouri-Kansas Pipe Line Co.
• Lynd A. Walking, secretary. Michigan Rural Electrification Association.
• William B. S. Winans, comptroller, Cities Service Co.
• Henry W. Worley, mayor, Columbus, Ohio.

Early in these hearings an invitation was extended to representatives of the corporations that were present throughout the hearings to present their constructive views on legislation relating to the natural-gas and natural-gas pipe-line industry. Several of them availed themselves of the invitation and made statements either oral or written.

The reports and exhibits put into the record were:

• Memorandum and letters re financing of Missouri-Kansas Pipe Line Co., by J. H. Hillman, Jr. (exhibits 6423, 6424, 6426).
• Documents, evidence, and correspondence referring to the Missouri and St. Louis natural-gas situation (exhibits 6467-6471, inclusive).
• Copy of letter dated December 6, 1930, from D. M. Wilson, vice president, Columbia Engineering & Management Corporation, to W. J. Sovereign, the Aladdin Co., relating to Michigan gas situation (exhibit 6472).
• Copy of agreement used by Consumers Power Co. for individuals or corporations desiring to sell gas (exhibit 6473).
• Maps and a pamphlet 0n the Texas natural-gas fields and situation (exhibits 6474—6477, inclusive).
• Letter dated November 14, 1935, of P. A. Schoellkopf, president, Niagara Hudson Power Corporation, re political expenditures for the years 1924, 1928, and 1932 (exhibit 6478).
• Documents and correspondence re Missouri-Kansas Pipe Line Co. and Pan handle Eastern Pipe Line Co. (exhibits 6479-6489, inclusive).
• Copies of letters obtained from the files of various gas subsidiaries of the Standard Oil Co. of New Jersey, including Hope Natural Gas Co., Hope Construction & Refining Co., East Ohio Gas Co., and Manufacturers Light & Heat Co. (exhibit 6490).
• Map and lease, Stanolind Pipe Line Co. (exhibit 6491).
• Exhibit 6492 not used.
• Exhibit 6493 not used.
• Agreement dated April 17, 1930, between Moody-Seagraves Co., Missouri Valley Gas Co., Argus Production Co., United Light & Railways Co., North American Light & Power Co., and Lone Star Gas Corporation (exhibit 6494).
• Copies of correspondence obtained from files of Hope Natural Gas Co. (natural-gas subsidiary of Standard Oil Co.), by William S. Hill, Jr., of the Federal Trade Commission (exhibit 6495).
• Statement of Christy Payne concerning classes of natural-gas consumers and gas service (exhibit 6496). List of wells in Ellisburg pool, showing farm location, company name, and amount of production, dated October 18, 1935 (exhibit 6497).
• Copy of pooling agreement used by New York State Natural Gas Corporation in lease agreements (exhibit 6498).
• Correspondence re Panhandle Eastern Pipe Line Co. (exhibits 6499 and 6950 ). 65
• showing W. J. Sovereign gas well and computation of acreage (exhibit
• Exhibit showing distribution companies furnishing natural gas to various localities in Missouri, as of September 18, 1935 (exhibit 6502).
• Maps of the various Michigan natural-gas areas (exhibits 6503—6506, inclusive) .
• Report by Ernest R. Lucas (Federal Trade Commission) and Thomas W. Mitchell (Federal Trade Commission), supervisor, on the examination- of accounts and records of Philadelphia Electric Co. (controlled by United Gas Improvement Co.) (vols. I and II), and appendixes (vols. III, IV, and V) (exhibits 6507 and 6507—A).
• Report by John H. Crabtree (Federal Trade Commission) on the examination of accounts and records of Oklahoma Natural Gas Co. (exhibit 6508).
• Photostatic copies of notes ($65,000 and $900,000) given by Oklahoma Natural Gas Corporation to order of American Natural Gas Corporation and endorsed over to Central Hanover Bank & Trust Co. (exhibit 6509).
• Exhibit 6510 identified, but not introduced.
• Report of Fred H. Magruder (Federal Trade Commission) on examination of accounts and records of Kentucky West Virginia Gas Co. (exhibit 6511).
• Report by Thomas W. Mitchell (Federal Trade Commission), supervisor, and James B. LeBow (Federal Trade Commission), examiner, 0n the examination of the accounts and records of Pittsburgh & West Virginia Gas Co., Equitable Gas 00., and Philadelphia Co. (consolidated operations of natural-gas properties), all of the Standard Gas & Electric group (exhibit 6512).
• Letter dated November 26, 1935, from C. S. Mitchell (comptroller, Pittsburgh & West Virginia Gas Co.) to W. H. England (Federal Trade Commission) concerning data on transmission lines from West Virginia to Pennsylvania State line (exhibit 65’12—A).
• Letters, memoranda, and an agreement re Missouri-Kansas Pipe Line Co. (exhibits 6513 and 6514).
• List of holders of certificates of deposit for Inland Gas Corporation, 10-year 7 percent sinking-fund debentures due February 1, 1918, prepared by City Bank Farmers Trust 00., stock transfer department, New York, N. Y., and letter re same (exhibit 6515).
• Paper by Edgar Dow Gilman re electric rate structures (exhibit 6516).
• Report by Frank Buckingham (Federal Trade Commission) on the examination of the accounts and records of the East Ohio Gas Co. (exhibit 6517).
• Report by Roger E. Barnes (Federal Trade Commission) on an examination of accounts and records of the United Gas Corporation and United Gas Public Service Co. (subsidiaries of Electric Power & Light Corporation of the Electric Bond & Share Co. group) (exhibits 6518 and 6519).
• Report by Frank C. Hale (Federal Trade Commission) on an examination of accounts and records of the Houston Gulf Gas Co. and Houston Gas & Fuel Co. (subsidiaries of United Gas Public Service Co. of the Electric Bond & Share Co. group) (exhibits 6520 and 6521).
• Report by H M. Moler (Federal Trade Commission) on an examination of accounts and records of the Southern Gas Co. (subsidiary of the United Gas Public Service Co. of the Electric Bond & Share Co. group) (exhibit 6522).
• Report of Wesley H. Morris (Federal Trade Commission) on an examination of accounts and records of the Southern Gas Utilities, Inc. (subsidiary of the United Gas Public Service Co. of the Electric Bond & Share Co. group, (exhibit 6523).
• Report by Roger E. Barnes (Federal Trade Commission), supervisor, and W. M. Thompson and Frank C. Hale (Federal Trade Commission) on an examination of accounts and records of the Northern Texas Utilities Co.(subsidiary of United Gas Public Service Co. of the Electric Bond & Share Co. group) (exhibit 6524).
• Report by Carl M. Mulcahy (Federal Trade Commission), on an examination of accounts and records of the Southern Gas & Fuel Co. (subsidiary of United Gas Public Service Co. of the Electric Bond & Share CO. group) (exhibit 6525). Report of Emma B. Kistler (Federal Trade Commission) on interstate transmission of gas by United Gas system (exhibit 6526).
• Agreement dated September 27, 1928, between the Ohio Oil 00., Producers & Refiners Corporation, and George W. Crawford, Fred W. Crawford, T. B. Gregory, L. B. Denning, providing for the formation of the Western Public Service Corporation (exhibit 6527).
• Agreement dated January 14, 1932, between Sinclair Consolidated Oil Corporation. Prairie Oil & Gas Co. and Prairie Pipe Line Co. (exhibit 6528).
• General report of Receivers L. R. Crawford and P. C. Spencer for Producers 8: Refiners Corporation (equity 2217) (exhibit 6529).
• Statement showing account of gas delivered and sold by Panhandle Eastern Pipe Line Co. to Cities Service Gas Co. under agreement dated November 1931 (exhibit 6530).
• Interofiice correspondence of Panhandle Eastern Pipe Line Co. consisting of weekly reports of B. R. Bay to F. W. Crawford and reports of J. B. Freeman and J. F. Curry to B. R. Bay (exhibit 6531).
• Minutes of meetings of board of directors of Panhandle Eastern Pipe Line Co. (exhibit 6532).
• Circular letter dated January 16, 1932, to producers selling gas, by the Ohio Fuel Gas Co. (exhibit 6533).
• Report by C-. Risden Fountain (Federal Trade Commission), examiner, and C. H. Depue (Federal Trade Commission), supervisor, on the examination of the accounts and records of Hope Producing Co. (subsidiary of Standard Oil Co. of New Jersey) (exhibit 6534).
• Report by F. F. Garter (Federal Trade Commission), examiner, and C. H. Depue (Federal Trade Commission), supervisor, on accounts and records of Atlantic Seaboard Corporation and subsidiaries (exhibit 6535).
• Map showing main transmission system of the Atlantic Seaboard Corporation and subsidiaries, gas pipe line system. May 31, 1932 (exhibit 6536).
• Volume II of report by A. E. Lundvall (Federal Trade Commission) on the examination of the accounts and records of Cities Service Co. (exhibit 6537).
• Report of John Knox Arnold and W. B. Horne (both of Federal Trade Commission) on inter-corporate relations of companies in the Cities Service group (exhibit 6538).
• Documents and correspondence selected from box of old records of Alabama Power Co. (exhibits 6539—6556, inclusive).
• Copies of inter-office correspondence and agreements relating to gas contracts of subsidiaries of the New York Natural Gas Corporation (exhibits 6557 and 6558).
• Report by J. W. Adams (Federal Trade Commission) on properties and operations of Northern Natural Gas Co. (exhibit 6559).
• Maps of Cities Service Gas Co. and associated companies showing natural gas transmission lines, 1905 to 1934, inclusive (Cities Service Co.’s exhibit 1).
• Statement by John T. Madden, dean of New York University, concerning study of report by Federal Trade Commission on Cities Service Securities Co. (Cities Service Co.’s exhibit 2).
• Maps, operating agreement, receipt, and letter, re New York State Natural Gas Corporation (New York State Natural Gas Corporation’s exhibits 1-6, inclusive).

Since the last interim report, accounting reports were completed on 1 large natural-gas holding company, on 10 natural-gas operating companies, and on 3 natural-gas producing companies. An accounting report and a report on inter-corporate relations were also completed on a large holding company engaged in the electric, natural gas, manufactured gas, petroleum, and other business activities covering the analysis of security issues, earnings, and surplus. An accounting report was also completed on a large electric holding company, including its subsidiaries. An engineering report on an important natural-gas holding-company group and a report on the interstate transmission of gas of a large gas holding system were also completed.

The other reports mentioned in interim report no. 82 are nearing completion.

Transmitted herewith is a transcript of testimony of the hearings held from November 15 to December 15, 1935, both inclusive (pp. 48439 to 50755, inclusive), together with exhibits introduced as above described (exhibits 6423, 6424, 6426, and 6427 to 6559, inclusive, Cities Service Co.’s exhibits 1 and 2, and New York State Natural GaIst Corporation’s exhibits 1 to 6, inclusive). is expected that the commission will conclude its public-utilities hearings before the next interim report (eighty-fourth interim report), and thereupon will submit its final report on the above investigation.

By direction of the Commission. EWIN L. DAVIS, Chairman.

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 1nvestagation of certain classes of holding and operating electric and gas companies, and associated engineering, finance, management, and construction companies, upon other matters specified 1n 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 eighty-third interim report covering the period from November 15, 1935, to December 15, 1935, both inclusive, is respectfully submitted.

FEDERAL TRADE COMMISSION
Washington, December 31st, 1935
To the Senate of the United States:

Eighty-fourth and last interim report is respect fully submitted. LINK TO VOLUME 84-I

The final report (pt. 84-A) is also transmitted on this date. Certain testimony and examiners reports which have been completed have not yet been formally put into the record, and therefore it is deemed appropriate to delay the printing of this last interim report (pt. 84) for the inclusion of all such reports and testimony.

The report and testimony presented related to the following companies :

• Lone Star Gas Corporation group.
• Lone Star Gas Co.Community Natural Gas Co.
• Washington Gas Light Co.
• Georgetown Gaslight Co.
• Interstate Natural Gas Co.
• Binghamton Gas Works.
• Panhandle Eastern Pipeline Co.
• Minnesota Northern Power Co.
• North American Light & Power Co. group.
• Standard Gas & Electric Co. group.
• Oklahoma Natural Gas Co.
• Home Gas Co.
• Keystone Gas Co.
• Western Public Service Corporation system.
• Appalachian Gas Corporation system.
• Commonwealth Corporation system.
• Missouri-Kansas Pipeline Co.
• Iroquois Gas Corporation.
• Natural Fuel Gas Co. group.
• Hope Natural Gas Co.
• Reserve Natural Gas Co.
• Peoples Natural Gas Co.
• Lycoming United Gas Corporation.
• United Natural Gas Co.
• National Fuel Gas Co.
• El Paso Natural Gas Co.
• Dallas Gas Corporation.
• San Antonio Public Service Co.

A tabulation of total assets of electric and gas holding, sub-holding, and operating companies examined during the Commission’s power and gas investigation.

The witnesses of the Commission’s staff were : J. W. Adams, Edwin H. Anderson, K. E. Barnes, Frank Buckingham, Harry H. Carter, William T. Chantland, John H. Crabtree, Robert C. Dalrymple, Calvin C. Davis, Carl H. Depue, Harold Devlin, Judson C. Dickerman, John H. Dynes, William H. England, C. B. Fountain, Emma B. Kistler, Ernest E. Lucas, Arthur L. Lyddane, A. M. McDermott, Frederick H. MacKenna, Fred H. Magruder, G. B. Marriott, Josephine B. Miller, H. M. Moler, A. L. Odebrecht, John F. Simmons, M. C. Steele, J. Wesley Sternberg, Thomas A. Thibodeau, William Tringham, William J. Warmack, James A. Webb, Andrew W. Wilcox and Walter B. Wooden.

Outside witnesses who also testified were :

• J. C. Chisler, treasurer, Hope Natural Gas Co.;
• James Comerford, treasurer, Lycoming United Gas Co.;
• Raymond M. Conner, gas engineer, in charge or American Gas Association Laboratories, Cleveland, Ohio, and Los Angeles, Calif. ;
• John H. Eiseman, gas engineer, National Bureau of Standards;
• Frederick R. Gamble, assistant secretary-treasurer, Montana-Dakota Utilities Co.;
• Paul Kayser, president, El Paso Natural Gas Co. ;
• W. G. Maguire, stockholder, Missouri-Kansas Pipeline Co. :
• S. J. Ratcliffe. treasurer, Peoples Natural Gas Co. and Columbia Natural Gas Co. ;
• George B. Shawn, gas engineer, Silex Co. ;
• Elmer R. Weaver, chief, gas section, Bureau of Standards.

Those who made statements for the record were:

• William T. Chantland, Federal Trade Commission;
• Roy C. Coffee, attorney, Lone Star Gas Co.;
• R. G. Hunt, counsel, American Gas Association;
• Parker Newhall, of Larkin, Rathbone & Perry, 70 Broadway, New York City ;
• Walter B. Wooden, Federal Trade Commission.

The reports and exhibits put into the record were:

• Copies of correspondence relating to the project of Arthur K. Lee and associates, for building a pipe line from the southwestern Kansas field to Colorado Springs and memorandum re costs and prices in Colorado Springs. (Commission’s exhibit 6560.)
• Letter dated May 27, 1935, from Lee Meadows denving utility financing of a newspaper venture at Lamar, Colo. (Commissions exhibit 6561.)
• Report by J. W. Adams (Federal Trade Commission) on proper ties and operations of the Lone Star gas system. (Commission’s exhibit 6562.)
• Report by William J. Warmack (Federal Trade Commission) on the examination of the accounts and records of Lone Star Gas Co. principal pipe-line company of Lone Star gas system). (Commission’s exhibit 6563.)
• Report by H. M. Moler (Federal Trade Commission) on the examination of the accounts and records of Community Natural Gas Co. (subsidiary of Lone Star Gas Corporation). (Commission’s the City’s Financial Problems.” Record of cities under municipal ownership, by C. F. Lambert. Published by Burns & McDonnell Engineering Co., consulting engineers for 1933, 1933-34, and 1934-35. (Commission’s exhibits 6565 6565-A and 65(56.)
• Electric Rate Survey, by States, prepared by Federal Power Commission. (Commission s exhibit 6567.)
• Correspondence concerning dealings in Missouri-Kansas Pipe Line Co. stock in 1930. (Commission’s exhibits 6568, 6569.)
• Report by Robert C. Dalrymple (Federal Trade Commission) on interstate transmission of gas by Washington Gas Light Co. (Commission’s exhibit 6570.)
• Report by Thomas A. Thibodeau (Federal Trade Commission) on an examination of the accounts and records of Washington Gas Light Co. (Commission’s exhibit 6571.)
• Report by Clarence G. Farwell (Federal Trade Commission) on an examination of the accounts and records of Georgetown Gaslight Co. (subsidiary of Washington Gas Light Co.). (Commission’s exhibit 6572.)
• Report by C. R. Fountain (Federal Trade Commission) on an examination of the accounts and records of Interstate Natural Gas Co., Inc. (Commission’s exhibit 6573.)
• Report by Frank Buckingham (Federal Trade Commission) on an examination of accounts and records of Binghamton Gas Works (operating subsidiary of Columbia Gas & Electric Corporation). (Commission’s exhibit 6574.)
• Report with appendixes by M. C. Steele (Federal Trade Commission) on an examination of accounts and records of Panhandle Eastern Pipe Line Co. and subsidiaries (controlled by Columbia Oil & Gasoline Corporation and Panhandle Corporation). (Commission’s exhibits 6575 and 6576.)
• Report by Robert C. Dalrymple (Federal Trade Commission) on interstate transmission of gas by Panhandle Eastern Pipe Line Co. system. (Commission’s exhibit 6577.)
• Report with appendixes by Ernest R. Lucas (Federal Trade Commission) and Thomas W. Mitchell (Federal Trade Commission) on the accounts and records of Minnesota Northern Power Co. and subsidiaries. (Commission’s exhibit 6578 and 6579.)
• Report by Frederick H. MacKenna (Federal Trade Commission) on the accounts and records of the North American Light & Power Co. group of Texas-Kansas-Nebraska Natural Gas Cos. (vol. I). Production and Gathering System, McPherson Oil & Gas Development Co., North American Oil & Gas Co., and Peoples Ice & Fuel Co. (vol. II). (Commission’s exhibit 6580.)
• Letter dated December 18, 1935, from John C. Weadock to Walter B. Wooden (Federal Trade Commission), with enclosures. (Commission’s exhibit 6581.)
• Report by J. Wesley Sternberg (Federal Trade Commission) on properties and operations of the Panhandle Eastern Pipe Line Co. (Commission’s exhibit 6582.)
• Report by Harry H. Carter Federal Trade Commission) on interstate transmission of gas by Standard Gas & Electric Co. group. (Commission’s exhibit 6583.)
• Report by Harry H. Carter (Federal Trade Commission) on interstate transmission of gas by Minnesota Northern Power Co. (Commission’s exhibit 6584.)
• Report, supplemental, by John H. Crabtree (Federal Trade Commission) on the examination of accounts and records of Oklahoma
  Natural Gas Co. (Commission’s exhibit 6585.)
• Documents re G. L. Ohrstrom & Co. and relation thereto of Central Hanover Bank & Trust Co. (Commission’s exhibits 6586-6593.)
• Report by Carl H. Depue (Federal Trade Commission) and F. F. Garter (Federal Trade Commission) on examination of accounts and records of the Home Gas Co. (Commission’s exhibit 6594-A.)
• Map, showing properties of Home Gas Co. (Commission’s exhibit 6594-B.)
• Report by Carl H. Depue (Federal Trade Commission) and F. F. Garter (Federal Trade Commission) on examination of accounts and records of Keystone Gas Co. (Commission’s exhibit 6595.)
• Report by Emma B. Kistler (Federal Trade Commission) on the interstate transmission of gas by the Western Public Service Corporation System. (Commission’s exhibit 6596.)
• Report by Melbourne C. Steele (Federal Trade Commission), F. M. Gresham (Federal Trade Commission), W. E. Walter (Federal Trade Commission) and Thomas W. Mitchell (supervisor, Federal Trade Commission) on the accounts and records of Western Public Service Corporation and its subsidiaries. ( Commission’s exhibit 6597.)
• Report by Arthur L. Lyddane (Federal Trade Commission) on examination of the accounts and records of Appalachian Gas Corporation, holding companies, and their subsidiaries, Appalachian
  Management & Engineering Corporation, Commonwealth Gas Systems, Inc., and Memphis Natural Gas Co. (Commission’s exhibit 6598.)
  Memorandum, dated January 6, 1936, by Roger E. Barnes (Federal Trade Commission) supplementing Southern Gas & Fuel Co. report (exhibit 6525). (Commission’s exhibit 6599.)
• Report by Robert C. Dalrymple (Federal Trade Commission) on interstate transmission of gas by Commonwealth Corporation System (successor to Appalachian Gas Corporation group). (Commission’s exhibit 6600.)
• Report by John H. Dynes (Federal Trade Commission )on prices of natural gas to distributing companies at the city gates and to domestic consumers, and net monthly bills for specified quantities of natural gas, and city gate rates by States (printed in vol. 84-C). (Commission’s exhibits 6601, 6601-A, and 6601-B.)
• Report by William Tringham (Federal Trade Commission) on the examination of accounts and records of Missouri-Kansas Pipe Line Co. (Commission’s exhibit 6602.)
• Mortgages Inland Gas Corporation to banks. (Commission’s exhibits 6603-A and 6603-B.)
• Mortgages Kentucky Fuel Gas Corporation to banks. (Commission’s exhibits 6604-A and 6604-B.)
• Report by Fred H. Magruder (Federal Trade Commission) on examination of accounts and records of Iroquois Gas Corporation state transmission of gas by National Fuel Gas Co. group. (Commission’s exhibit 6606.)
• Report by James A. Webb (Federal Trade Commission) and Carl H. Depue (Federal Trade Commission) on accounts and records of Hope Natural Gas Co., Reserve Natural Gas Co., Connecting Gas Co., River Gas Co., and Peoples Natural Gas Co. (subsidiaries of Standard Oil Co. of New Jersey). (Commission’s exhibits 6607, 6608, and 6609.)
• Report by Carl H. Depue (Federal Trade Commission) and George H. Schutte (Federal Trade Commission) on examination of accounts and records of Lycoming United Gas Corporation and its subsidiaries, Lycoming Producing Corporation, New York State Natural Gas Corporation, and the Keuka Construction Corporation. (Commission’s exhibit 6610.)
• Report by Harold M. Devlin (Federal Trade Commission) on examination of accounts and records of United Natural Gas Co. (National Fuel Gas group). (Commission’s exhibit 6611.)
• Correspondence between O. R. Seagraves and William T. Chantland, attorney (Federal Trade Commission), transmitting replies to written interrogatories, accompanied by affidavit and signed by Mr. Seagraves. (Commission’s exhibit 6612.)
• Report by A. L. Odebrecht (Federal Trade Commission) on natural-gas purchase policies of pipe-line companies, held prices, and the relationship between landowners, producers, and transmission companies. (Commission’s exhibit 6613.)
• Report by J. W. Adams (Federal Trade Commission) on natural gas as a public utility in the eastern United States, including factors affecting production and distribution of natural gas; leasing policy of large companies ; domestic price and consumption ; competitive conditions in eastern fields ; position of independent producers ; progressive exhaustion of supply; effects of winter peaks; and offset wells. (Commission’s exhibit 6614.)
• Report by G. B. Marriott (Federal Trade Commission) on inter-corporate relations in the natural-gas industry. (Commission’s exhibit 6615.)
• Report.by John F. Simmons (Federal Trade Commission) and John W. Adams (supervisor, Federal Trade Commission) on the transportation costs of the Kansas-Nebraska group of natural-gas companies controlled by North American Light & Power Co. (Commission’s exhibit 6616.)
• Report by Andrew W. Wilcox (Federal Trade Commission), Ben ton R. Chism (Federal Trade Commission) , Norris R. Eaton (Federal Trade Commission), and Chester A. Martin (Federal Trade Commission) on the examination of accounts and records of the North American Light & Power Co. group of Texas-Kansas- Nebraska Natural Gas Cos. (Commission’s exhibit 6617.)
• Letter dated January 21, 1936. William A. Dougherty to William T. Chantland, attorney (Federal Trade Commission), concerning report of East Ohio Gas Co. and transmitting statistical data. (Commission’s exhibit 6618.)
• Report by Fred H. Magruder (Federal Trade Commission) and Thomas W. Mitchell (Federal Trade Commission, supervising examiner) on examination of accounts and records of National Fuel Gas Co. (Commission’s exhibit 6619 )
• Summary balance sheets and income statements of natural-gas holding and operating companies. Prepared under direction of Calvin C. Davis (Federal Trade Commission). (Commission’s exhibit 6620.)
• Report by Walter Meleen (Federal Trade Commission) and Frederick H. MacKenna (Federal Trade Commission) on examination of accounts and records of El Paso Natural Gas Co. and its subsidiaries. (Commission’s exhibit 6621.)
• Maps of natural-gas systems as submitted by Standard Oil Co. of New Jersey, Columbia Gas & Electric System, Electric Bond & Share Co., and Cities Service Co. (Commission’s exhibits 6622-6625.)
• Report by Harry H. Carter (Federal Trade Commission) and Robert C. Dairymple (Federal Trade Commission) on interstate transmission of gas by El Paso Natural Gas Co. system. (Commission’s exhibit 6626.)
• Report by William J. Warmack (Federal Trade Commission) on examination of the accounts and records of Dallas Gas Corporation and subsidiaries, Dallas Gas Co.? and County Gas Co. (Lone Star Gas System). (Commission’s exhibit 6627.)
• Report by J. W. Adams (Federal Trade Commission) on the operations of Joshua Stabilization Plant of the Lone Star Gas System.(Commission’s exhibit 6628.)
• Reports, documents, correspondence, etc., relating to gas dilution and injection of inerts. (Commission’s exhibits 6629-6658.)
• Report by Judson C. Dickerman, engineer-examiner (Federal Trade Commission), on physical properties and operations of Hope Natural Gas Co., Interstate Natural Gas Co., Inc., Colorado Interstate Gas Co., East Ohio Gas Co., and United Public Service Gas Co. (Commission’s exhibit 6659.)
• Second supplemental report by John H. Crabtree (Federal Trade Commission) on the examination of accounts and records of Oklahoma Natural Gas Co. (Commission’s exhibit 6660.)
• A tabulation of total assets of electric and gas holding, sub-holding, and operating companies examined during the Commission’s power and gas investigation. (Commission’s exhibit 6661.) Report by J. Wesley Sternberg (Federal Trade Commission) on financial transactions of Missouri-Kansas Pipeline Co. (Commission’s exhibit 6662.)
• Federal Power Commission report on public electric projects. (Commission’s exhibit 6663.)
• Report by Edwin H. Anderson (Federal Trade Commission) on examination of accounts and records of San Antonio Public Service Co. (Commission’s exhibit 6664.)
• Statement by American Gas Association, Inc., respecting certain testimony at proceedings of Federal Trade Commission, held April 16 and 17, 1935, and October 9 and 10, 1935, concerning gas service and gas standards, and respecting British thermal unit heating value. (American Gas Association exhibit 1.)
• Correspondence with American Gas Association re further testimony. (American Gas Association exhibit 2.) Chart consisting of tabulation of facts concerning leases acquired at various times from Standard Oil Co. of Louisiana, Ohio Oil Co., New Process Carbon Black Co. and G.L. Shields (Hope Producing Co. Exhibit A.)
• Memorandum regarding supplemental report of the examination of accounts and records of Oklahoma Natural Gas Co. by John H. Crabtree (Federal Trade Commission). (Central Hanover Bank exhibit 1.)

Transmitted herewith is a transcript of testimony of the hearings held, together with exhibits introduced as above described.

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

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 eighty-fourth and last interim report is respect fully submitted.

FEDERAL TRADE COMMISSION,
Washington, D. C., December 31, 1935.
To the Senate of the United States:
LINK TO VOLUME 84-A

Herewith is submitted the final report of the Federal Trade Commission in response to Senate Resolution 83, Seventieth Congress, first session (as extended under S. J. Res. 115, 73d Cong., 2d sess.) directing investigation as therein stated of certain matter relating to the …and gas utilities.

On February 15, 1928, the Senate adopted the following resolution:

Resolved, That the Federal Trade Commission is hereby directed to inquire into and report to the Senate, by filing with the Secretary thereof, within each 30 days after the passage of this resolution and finally on the completion of the investigation (any such inquiry before the Commission to be open to the public, and due notice of the time and place of all hearings to be given by the Commission, and the stenographic report of the evidence taken by the Commission to accompany the partial and final reports) upon :

(1) The growth of the capital assets and capital liabilities of public-utility corporations doing an interstate or international business supplying either electrical energy in the form of power or light or both, however produced, or gas, natural or artificial, of corporations holding the stocks of two or more public-utility corporations operating in different States, and of nonpublic-utility corporations owned or controlled by such holding companies;

(2) the method of issuing, the price realized or value received, the commissions or bonuses paid or received, and other pertinent facts with respect to the various security issues of all classes of corporations herein named, including the bonds and other evidences of indebtedness thereof, as well as the stocks of the same;

(3) the extent to which such holding companies or their stockholders control or are financially interested in financial, engineering, construction, and/or management corporations, and the relation, one to the other, of the classes of corporations last named, the holding companies, and the public-utility corporations;

(4) the Services furnished to such public-utility corporations by such holding companies and/or their associated, affiliated, and/or subsidiary companies, the fees, commissions, bonuses, or other charges made therefor, and the earnings and expenses of such holding companies and their associated, affiliated, and/or subsidiary companies; and

(5) the value or detriment to the public of such holding companies owning the stock or otherwise controlling such public-utility corporations immediately or remotely with the extent of such ownership or control, and particularly what legislation, if any, should be enacted by Congress to correct any abuses that may exist in the organization or operation of such holding companies.

The Commission is further empowered to inquire and report whether, and to what extent, such corporations or any of the officers thereof or anyone in their behalf or in behalf of any organization of which any such corporation may be a member, through the expenditure of money or through the control of the avenues of publicity, have made any and what effort to influence or control public opinion on account of municipal or public ownership of the means by which power is developed and electrical energy is generated and distributed, or since 1923 to influence or control elections: Provided, That the elections herein referred to shall be limited to the elections of President, President, Vice and Members of the United States Senate.

The Commission is hereby further directed to report particularly whether of the practices heretofore in this resolution stated tend to create a monopoly or constitute violation of the Federal antitrust laws.

June 26, 1934, the President approved the following Joint Resolution (S. J. Res. 115, 73d Cong., 2d sess.):

Whereas it is learned that the Federal Trade Commission, because of lack of time, money, and personnel, intends to close its utilities investigation under S. Res. 83, Seventieth Congress, first session, without investigating various important corporations included among these described in said resolution; and Whereas it is in the public interest that certain of said corporations be investigated:

Therefore be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the Federal Trade Commission be, and it is hereby, authorized and directed to proceed under the Senate resolution aforesaid until it has investigated such of said corporations as in its judgment should be investigated, but the investigation shall be completed and the Commission’s final report, with recommendations, shall be submitted to the Congress not later than the first Monday in January 1936.

In accord with these mandates the Federal Trade Commission has transmitted to the Senate from month to month 84 interim reports covering chronologically, and in detail, the investigation. In addition to these 84 reports there were also prepared and presented 7 exhibit volumes, containing many essential exhibits introduced and referred to in the first 20 report volumes, which cover the utilities association propaganda.

On September 15, 1934, there was transmitted to the Senate part 69–A, a volume containing (1) a compilation of proposals and views for and against Federal incorporation or licensing of corporations, and (2) a compilation of State constitutional statutory and case law concerning corporations, with particular attention to public utility holding and operating companies.

On November 27, 1934, there was transmitted to the Senate, and printed as part 71–B, an index to parts 1 to 20, inclusive, and the seven accompanying exhibit volumes.

On December 12, 1934, there was transmitted to the Senate, and printed as part 71-A, the Commission’s report on the electric power and gas utilities association publicity and propaganda activities and expenditures.

On May 16, 1935, there was sent to the Senate, and printed as part 77—A, a general index of parts 21 to 45, inclusive, and also a separate index to the same parts by witnesses and topics, of the publicity propaganda carried on by the various groups and companies.

Between January 10 and February 9, 1935, there was transmitted to the Senate the last installment of chapters I to IX of the Commission’s report on the economic, financial, and corporate phases of holding and operating electric utilities, subsequently followed by two additional chapters all of which were printed as part 72–A.

On January 28, 1935, there was transmitted to the Senate, and printed as part 73–A, chapters, XII, XIII, and XIV of the Commission’s report on electric utilities and seven pertinent law, studies as appendixes. Chapters XII and XIII discussed the efforts of States and the Federal Government to control and regulate holding companies, the need for enlargement of such regulation, and the constitutional powers under which the regulation might be accomplished.

As directed by the Senate resolution, the Commission stated its conclusions and recommendations in the final chapter (XIV).

These recommendations were directed primarily to the utility holding company problems and were presented in cumulative and alter
native form.

As of November 14, 1935, there was transmitted to the Senate and printed as part 81—A, the Commission’s report on publicity and propaganda activities and expenditures by utilities groups and countries.

Commission’s final report (84–A) deals primarily with groups and companies of the natural gas and natural gas pipeline industry.

Chapters I to XI, inclusive, are devoted to description and discussion of the financial phases, practices, problems, history, and certain economic aspects of the natural-gas … pipe-line industry.

Chapter XII is a summary of facts, and a survey of the legal situation, indicating the problems existing in the natural gas and its pipe line industry, and the possible legal bases for their solution.

Chapter XIII, in response to the Senate mandate, contains the Commission’s conclusions and recommendations in the premises.

Attached are four relevant legal studies (Appendixes L–1 to L-4) an four economic reports and compilations (Appendixes E-1 to It is requested that this final report be printed as part 84–A, that the four legal appendixes be printed as part 84–B, and that the four economic appendixes be printed as part 84–C.

An index of parts 46 to 84, inclusive is in preparation and will be printed as part 84–D.

By direction of the Commission. Ewin L. DAVIS, Chairman.

TABLE OF CONTENTS LINK TO VOLUME 84-B

• Appendix L–1. Compilation and Digest of Federal and State Statutes Relating to Attempts to Conserve Natural Gas, James A. Austin pg1
• Appendix L–2. State Statutory Law Concerning Gas Pipe Lines, Wilbur N. Baughman pg 77
• Appendix L-3. Factors in Rate Making for Natural Gas and Natural-Gas Pipe Line Companies, Thomas J. Tingley  pg 91
• Appendix L–4. Digest of Natural-Gas Service Standards so Far as Prescribed by State Regulatory Bodies, James A. Austin pg 111

TABLE OF CONTENTS LINK TO VOLUME 84-C

• Appendix E-1. List of principal utility companies examined showing the volume of the Commission’s report on utility corporations in which the company reports are printed.  pg1
• Appendix E-2. List of natural-gas holding and operating companies examined by controlling systems and functional classification pg 9
• Appendix E–3. City-gate rates—Prices paid for natural gas at the city gate, by States  pg 13
• Appendix E-4. Net monthly bills for specified quantities of natural gas, domestic service, October 1935, by States pg 83

CHARACTER AND SCOPE OF THIS INDEX LINK TO VOLUME 84-D

This volume together with parts 71-B and 81-A (pp. 259-570) constitute a general index to the 95 printed volumes comprising the record of the Commission’s investigation of electric and gas utilities conducted at the direction of the Senate and the Congress as expressed in Senate Resolution 83, Seventieth Congress, first session, and extended by Senate Joint Resolution 115, Seventy-third Congress, second session. Parts 71-B and 81-A (pp. 259-570) deal with utility propaganda and publicity.

The investigation consisted of two distinct phases: (1) financial, and (2) publicity.

The first 20 parts with their accompanying exhibits volumes deal with the propaganda and publicity activities of the various associations and committees set up by the electric and gas industries which are summarized in the report volume, 71-A. The summary report on similar activities of the various holding company groups and separate companies is in part 81-A, pages 1 to 246.

Beginning with part 21, the reports deal with:

(1) the growth of the capital assets and liabilities of public-utility corporations doing an interstate or international business supplying either electric energy or gas, of corporations holding the stocks of two or mole public-utility corporations operating in different States, and of nonpublic-utility corporations owned or controlled by such holding companies;

(2) the method of issuing, the price realized or value received, the commissions or bonuses paid or received, and other pertinent facts with respect to the various security issues of all classes of corporations herein named, including the bonds and other evidences of indebtedness thereof, as well as the stocks of the same;

(3) the extent to which such holding companies or their stockholders control or are financially interested in financial, engineering, construction, and/or management corporations, and the relation, one to the other, of the classes of corporations last named, the holding companies, and the public-utility corporations:

(4) the services furnished to such public-utility corporations by such holding companies and/or their associated, affiliated, and/or subsidiary companies, the fees, commissions, bonuses, or other charges made therefor, and the earnings and expenses of such holding companies and their associated, affiliated, and/or subsidiary companies; and

(5) the value or detriment to the public of such holding companies owning the stock or otherwise controlling such public-utility corporations immediately or remotely, with the extent of such ownership or control, and particularly what legislation, if any, should be enacted by Congress to correct any abuses that may exist in the organization or operation of such holding companies. The testimony and record of the propaganda activities of the various utility groups and companies usually follow the reports on the financial phase.

Summarized reports of the financial studies with conclusions and recommendations may be found in part 72-A dealing mainly with the electric industry and part 84-A, with natural gas and natural gas pipe lines.

The Commission’s summary report and recommendation as to the electrical industry is contained in part 73-A, pages 59-76. Its summary with recommendations as to the natural gas and natural gas pipe line industry is in part 84-A pages 607-617.

The set contains other special volumes as follows :

• Part 69-A: Compilation of proposals and views for and against Federal incorporation or licensing of corporations and compilation of State. constitutional, statutory, and case law concerning corporations, with particular attention to public utility holding and operating companies.
• Part 73-A : Holding and operating companies of electric and gas utilities: Survey of State laws and regulations, present extent of Federal regulation and the need of Federal legislation, conclusions and recommendations and legal studies in support thereof.
• Part 77-A: Index to testimony in parts 21 to 45, numerical list of exhibits in parts 21 to 45, index of exhibits in parts 21 to 45, index to record on company publicity and propaganda, parts 21 to 45, inclusive. (The matter included in pt. 77-A is later incorporated in pt. 84-D.)
• Part 84-B : Legal appendixes to part 84-A (State laws and legal studies re natural gas and natural gas products).
• Part 84-C: Economic appendixes to part 84-A (city gate rates for natural gas).
• Part 84-D : General index to parts 21 to 84-C, inclusive.

This is a 1,252 page compilation of exhibits released on November 12, 1929 as part the investigations 1929 probe in conjunction with the accompanying testimony.   Below is the cover page. Full Document here.

This is a 952 page compilation of Exhibits that was released on Decmber 12, 1929 as part the investigations 1929 probe in conjunction with the accompanying testimony. Full Document here.

This is a 1123 page compilation of Exhibits that was released on January 30, 1930 as part the investigations 1929 probe in conjunction with the accompanying testimony. Full Document Here

This is a 507 page compilation of Exhibits that was released on February 14th , 1930 as part the investigations 1929 probe in conjunction with the accompanying testimony. Full Document Here.