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Henry a Wallace — Part 4
Page 415
415 / 543
RAP eater tte MOEN et
Pont ew yg
eS EI INTIS IE OS
i '
NEW REPUBLIC:
Newman Club, a Catholic group, and
» declared that “I will give the benefit of
my knowledge to any group” be it
white, Negro, Jewish, Catholic, Com-
| ‘A Smell of Oil 7
by Robert S. Allen
WP arswenr TRUMAN is quietly and
effectively transforming the Federal
Power Commission from a tegu-
latory agency into a mouthpiece for
the oil ‘and natural-gas industries.
‘His nomination of Burton N. Beh-
ling as an FPC commissioner has
the odor of crude petroleum.
‘Behling, who calls himself an
independent, owes his selection to
the combined efforts of California
oilman Ed Pauley, former Gover- -
not Robert S. Kerr (Kerr-McGee
_ Oil Industries, Inc.)_of Oklahoma,
‘and former Michigan Senator Pren-
tiss M. Brown (head of a Detroit
light and power company). Beh-
ling is also closely identified with
the views of the commission’s chair-
tan, Nelson Lee Smith, who rarely
expresses opinions unfavorable to
the oil and utilities interests.
' Bebling’s nomination is the latest
episode in the Truman regulation-
. wrecking spree which has already
ousted James M. Landis as Civil
Aeronautics Board chairman, and
Marriner S. Eccles as head of the
Federal Reserve Board. Conse-
quently there has been little sur-
prise in Washington.
The confirmation of Behling—he
would replace retiring Commis-
sioner Richatd Sachse—will assure
the oil interests of a sympathetic :
majority in the five-man commis-
sion. Behling will undoubtedly
support the regulation-scuttling leg-
islation the oil companies are try-
ing to jam through Congress.
Carefully echoing Chairman
Smith and Commissioner Harring-
ton Wimberly, Bebling has already
gone on record as favoring the no-
torious Rizley-Moore bill (the NR,
February 23), which would legalize
upward revision (on @ basis of the
“fair-field-price” formula) of aatu- -
tal-gas rates, now being held to a
cost-of-production level by the gov-
ernment, ;
i
are connected financially with a pipe:
. line project several phases of which
_ pretty well, and with Behling’s
‘Rizley-Moore “fair-fteld-price”
The additional cost per year of
such a rate boost to natural-gas con-
sumets in the Colorado-to-New
York area alone would be $56 mil-
lion. And that isn’t all. Phillips
Petroleum has a gigantic stake in
the establishment of field prices as
part of the rate base. Commissioner
Leland Olds, who has written his
own separate report on the gas in-
vestigation, estimates the value of
Phillips’ gas reserves at $389 mil-
lion if field prices are five cents
per thousand cubic feet. If the price~-|--
goes up to 10 cents, Olds points
out that the value of Phillips’ prop-
erty will be increased accordingly.
Welcome addition. Ex-Senator
Brown and former Governor Kerr
are awaiting final FPC approval.
Since the present commission is
split two to two en the matter, and
a rival pipeline is challenging the
whole proceeding in the courts, it ©
would ‘be very nice, naturally, to
have an agreeable fellow appointed
to break the deadlock. Behling, for
instance. ©
Both politically and financially,
the pipeline companies are doing
added help they hope to do even
better. Under prevailing cost-of-
production price levels, for ex-
ample, the Interstate Natural Gas
Company earned 15.9 percent on its
invested capital from 1939 to 1946,
Colorado Interstate Gas Company
collected 15.1 percent. And eight
other natural-gas pipeline com-
panies are on the list of the top 20
big money-making US corporations.
If Behling is confirmed and the
formula goes through, the 1948
profits of these pipeline companies
should zoom into the wild blue
yonder.
munist, Anarchist “or anything else.”
Asked if he would talk before the Ger-
man-American Bund, the Judge turned
to face Tenney and brought down the
house with his reply: “Yes, on my own °
terms. I'll even talk to you!”
A day later the Tenney troupe
folded camp and left town just as the
Freedom Train pulled in.
FOOTNOTE TO A PURGE »
Representative Karl Stefan (R,
Nebr.), as chairman of the House Ap-
“propriations Subcommittee on thé State 7 -
Department, was able to get access to
files of last year’s notorious loyalty
purge. And last week, 12 typical cases
were spread on the record at hearings.
Hamilton ‘Robinson, director of the
State Depastment’s Office of Control,
was closely questioned about his meth
ods. Only the names of the suspects
were withheld.
A reading of the 12 reports shows
that case after case was based solely
on such items as membership in the
Ameticans for Democratic Action, “his
wife belongs to the League of Women
Shoppers,” he “studied under Harold
Laski,” he once said, “Henry Wallace
is the outstanding symbol of American _
democracy.” Equally damning was .
membership in the American Veterans’
Committee, membership in the Amer-
ican Civil Liberties Union, participa-
tion in the US trade-union delegation
to Soviet Russia (1927), unfavorable
mention by Mrs. Elizabeth Dilling,
Victor Kravchenko anda Roman Cath-
olic priest in Italy, association with an
official of the PAC, being “too vigor-
ous in her beliefs,” and so on. .
‘In fairness to the department it
should be said that most of the people
accused only of such silly.things were
not dismissed, and that what looks on
the face of it at Jeast to be a reasonably
fair trial procedure is now in force
within the department. The criticism
leveled last year at the department's
star-chamber proceedings was evidently
effective.
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