LETTER OF TRANSMITTAL PRESIDENT OF THE SENATE, FEDERAL TRADE COMMISSION, Washington, D. C. DEAR SIR: Herewith I have the honor to transmit the seventy-third interim report of the Federal Trade Commission, made 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 utility corporations. This report is accompanied by transcript of testimony taken and exhibits introduced at the hearings held as therein stated. By direction of the Commission. EWIN L. DAVIS, Chairman. LETTER OF SUBMITTAL FEDERAL TRADE COMMISSION, To the Senate of the United States: Pursuant to Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928 (as extended by S. J. Res. 115, 73d Cong., 2d sess., approved June 26, 1934), directing the investigation of certain classes of holding and operating electric and gas companies, and associated engineering, finance, management, and construction companies, upon other matters specified in the resolution, and directing that the Commission "report to the Senate within each 30 days after the passage of the resolution and finally on the completion of the investigation" and that it transmit therewith the stenographic report of the evidence taken, this seventy-third interim. report covering the period from December 16, 1934, to January 15, 1935, inclusive, is respectfully submitted. Public hearings were held on December 20 and 21, 1934. The report and testimony thereupon offered related to the following group: Cities Service Power & Light Co. The witness, of the Commission's staff, was Randolph K. Ogle. The report and exhibit put into the record were: The report by Randolph K. Ogle on the examination of the accounts and records of Cities Service Power & Light Co. (Exhibit 6201.) Since the last interim report an accounting report on a large subholding company was completed. Due to the necessity of loaning personnel to the textile inquiry, to which an order of the President gave precedence, the suspension of work on three reports was continued throughout the month. Work on three accounting reports and an important engineering report was also suspended in order to complete the general report on electric and gas utilities for submission to the Senate. Field accounting examinations were continued on 6 holding and subholding companies, the examination of 1 of which involves 17 predecessor and affiliated companies; on 4 large operating companies, an important natural-gas pipe-line company, and a securities-selling company. Reports on the interstate movement of electric energy are being prepared for two companies and on a securities-holding company. Field accounting work was begun on the subsidiaries of an important natural-gas pipe-line company. Since the last interim report (the seventy-second) there has been sent to the Senate the first three chapters of the summary report of the Federal Trade Commission on the economic, financial, and cor porate phases of holding and operating companies of the electric and gas utilities. This summary report is being printed as part 72-A. Chapter I is entitled "Origin and Scope of the Inquiry" and outlines generally the origin of the inquiry, methods of investigation, and the scope of the entire hearings. Chapter II is entitled "Growth and Importance of Electric and Gas Industries" and presents statistics showing the growth of the fixed capital and earnings of corporations engaged in the electric and gas utilities industries, the growth and present importance of holdingcompany control of these industries, the importance of the interstate movement of electric energy and natural gas, the control of naturalgas pipe lines by a few large electric holding companies and corporations engaged in the petroleum business, and the proportion of the industry covered intensively by the Commission's inquiry. Chapter III is entitled "Competition and Combination Affecting the Control of the Electric and Gas Utility Industry" and summarizes and interprets the facts developed in the public hearings made pursuant to Senate Resolution 83, Seventieth Congress, first session. It deals with the relation of holding companies to local monoply utilities, competition among holding companies (particularly for control of operating companies), the relations of certain investment bankers with specific holding-company groups, and the competition among investment bankers for electric and gas utility holding-company control. Transmitted herewith is the transcript of testimony of the hearings from December 16, 1934, to January 15, 1935, inclusive (pp. 45603 to 45864, inclusive), together with exhibit introduced as above described (exhibit 6201). By direction of the Commission. EWIN L. DAVIS, Chairman. |