LETTER OF SUBMITTAL

To the Senate of the United States:

OCTOBER 17, 1930.

Pursuant to the direction of the Senate in Senate Resolution 83, Seventieth Congress, first session, approved February 15, 1928, regarding the investigation of certain electric power and gas utility companies, that this 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 twenty-sixth interim report covering the period from July 15, 1930, to date, is respectfully submitted.

The fire which, on August 30, 1930, wrecked the building then occupied by the Federal Trade Commission, destroyed the reports which commission examiners had prepared for public hearings relating to eight companies, as to which hearings had not been held up to that date, destroyed some or all of the field analysis sheets, together with many prepared exhibits pertaining to four other companies, and also the exhibits prepared by commission accountants to accompany the report on a thirteenth company. Much time and expense have already been required and more will yet be needed in replacing these. There was additional loss of the time of most of that portion of the personnel employed in Washington at the time of the fire, because of interruption of their work and of diversion of their time and' efforts to salvaging equipment and reconditioning water-damaged work papers. Nevertheless, the prosecution of the investigation, as ordered by the Senate, has proceeded without substantial interruption.

September 29 and 30, and October 1 and 2, 1930, public hearings were held on all phases of the inquiry relative to Carolina Power & Light Co. and the Minnesota Power & Light Co., operating companies in the Electric Bond & Share group.

Since the last interim report a field engineering inspection and study of the generating stations, transmission lines, and distribution systems of the large gas and electric operating companies in the Pacific Northwest and Pacific Coast States has been completed. A similar study was also made of the Minnesota Power & Light Co. This work covers a careful inspection of the operating properties, and a critical study of the operating statistics and operating costs of electric and gas companies.

The field accounting examination of the books of account of five holding companies and six operating companies was continued and the commission's accountants completed the accounting examination of one holding company and of eight important operating companies. Examination was also made of the extent and method of intercom

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pany control and management of a number of holding companies and of their subsidiary and affiliated operating, management, servicing, and investment companies.

Further public hearings on all phases of the investigation covering one of the large holding companies, it is expected, will be held early in November.

The transcript of testimony taken September 29 to October 2, 1930, inclusive, relative to the Carolina Power & Light Co. and Minnesota Power & Light Co. bearing the page numbers 11581 to 11857 inclusive, is transmitted herewith. Accompanying this report are also exhibits introduced at said hearings numbered 4704 to 4714 inclusive.

The transcript of all hearings on the publicity or propaganda phase of the inquiry has now been printed as parts 1 to 20, inclusive, of the Senate print. Selections from the exhibits produced at said hearings numbered from 1 to 4514 inclusive, as well as the association exhibits introduced by counsel for the utilities, numbered from 1 to 30 inclusive, have also been printed in volumes bearing numbers which correspond to numbers given the printed transcript of testimony wherein said exhibits are referred to. Further testimony and exhibits as to this phase of the resolution have been or will be offered in the hearings relating to individual groups or companies.

The transcript of the testimony and accompanying exhibits relating to American Gas & Electric Co. have been printed as part 22 of the Senate print. Transcript of the hearings and the accompanying exhibits as to the Electric Bond & Share Co. and allied holding companies, American Power & Light Co. and Electric Power & Light Corporation are being printed as part 23. The transcript and exhibits relating to the W. B. Foshay Co. group and the National Power & Light Co. (the latter being a holding company of the Electric Bond & Share group) are in page proof and will appear as parts 24 and 25 of the Senate print.

By direction of the commission.

GARLAND S. FERGUSON, JR.,

Chairman.

DESCRIPTIVE LIST OF EXHIBITS INTRODUCED AT HEARING, SEPTEMBER 29, 30, AND OCTOBER 1, 1930, CAROLINA POWER & LIGHT CO.

No. 4704.-Report on Carolina Power & Light Co., prepared by Robert J. Ryder (Federal Trade Commission). (Tr. 11584.)

No. 4705.-Not offered (duplicate of Exhibit No. 4672).

No. 4706.-Report on Carolina Power & Light Co., prepared by Carl H. Depue (Federal Trade Commission). (Tr. 11595.)

No. 4707.-Exhibits to report (Exhibit No. 4706) on Carolina Power & Light Co., prepared by Carl H. Depue, consisting of:

Agreement of merger and consolidation between Carolina Power & Light Co., Asheville Power & Light Co., Yadkin River Power Co., Pigeon River Power Co., and Carolina Power Co., February 24, 1926.

Mortgage and deed of trust of Carolina Power & Light Co., dated April 1, 1926.

Minutes of meetings of Carolina Power & Light Co.

Agreements between the United States Co. and National Power & Light Co., Pigeon River Power Co., North Carolina Electrical Power Co., Canton Electric Co., and Frank A. Reid, dated December 5, 1925.

Report by Harold Tomlin, examiner for the Federal Power Commission regarding prelicense cost of the Pigeon River (Waterville) project, No. 432, dated June 9, 1927.

Statement of prelicense costs in connection with project No. 432 (Waterville, N. C.) by Carolina Power & Light Co., dated March 1, 1930. Annual reports-Carolina Power & Light Co., 1926, 1927, 1928, and 1929. Journal entry No. 1 of Carolina Power & Light Co., dated April 1, 1926, with supplemental supporting analyses of certain accounts. Consolidated balance sheet as of April 1, 1926, of the constituent corporations then merged into the (new) Carolina Power & Light Co. Statement (explanatory) of eliminations shown in above balance sheet. By-laws Carolina Power & Light Co.

Financial statements of Carolina Power & Light Co.

Correspondence and entries covering charges of commissions and expense of sale of stock and bonds to plant accounts on books of old Carolina Power & Light Co.

Chart-Intercorporate relations between Electric Bond & Share Co., National Power & Light Co., Carolina Power & Light Co., and Pigeon River Power Co.

Statements. Engineering, construction, and supervision fees paid Electric Bond & Share Co. and Phoenix Utility Co.

Contracts-December 15, 1914, Carolina Power & Light Co. (old) and Electric Bond & Share Co. November 22, 1926, and January 30, 1929, Carolina Power & Light Co. (new) and Electric Bond & Share Co. April 7, 1922, and January 15, 1926, Carolina Power & Light Co. (old) and Phoenix Utility Co. December 10, 1926, and January 1, 1929, Carolina Power & Light Co. (new) and Phoenix Utility Co.

Map Carolina Power & Light Co. system.

Map Duke Power Co. system. (Tr. 11595.)

No. 4708.-Appendices to report (Exhibit No. 4706) on Carolina Power & Light Co., prepared by Carl H. DePue, consisting of:

Carolina Power Co.-Financial statements, memorandum re cancellation of indebtedness of Frank A. Reid to Carolina Power Co. and of latter's indebtedness to the National Power & Light Co.

Yadkin River Power Co.-Analysis of merger and consolidation account. Financial statements. Balance sheets, 1924-1926. Analysis of National Power & Light Co. loan account.

Asheville Power & Light Co.-General information reported to North Carolina Corporation Commission. Comparative balance sheets, 1925-26, filed with North Carolina Corporation Commission.