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Show UTAH VALLEY NEWS TIIE THIRTY --FOUR MILLION DOLLAR RACKET is vicious and wrong wholly inexcusable. But the methods of Mr Gilham were mild and inconseqqental, compared to the subsequent tactics and methods of George M. Gadsby and the assistant to the president, the Adam Bennion. We wonder what the dupes of Utah Power A Light Company in sen-icclubs, chambers of commerce, and the character building organizations really think of the conspiracy of Utah Power A Light Company and the Salt Lake City dailies to withhold from the public the truth about d methods of Electric Bond A Share and Utah Power A Light Company. When has any daily newspaper in Utah given editorial approval to any projected municipal power plant? And when has any daily newspaper in Utah questioned the menace to free and unfettered local involved directly in the methods, tactics and newspaper con-trpracticed by Utah Power & Light Company? Possibly the reader may find an instance. We sincerely regret we have been unable to. e (Continued from preceding page) those who would resist power methods and exploitation. Power Company men and allies make it perfectly clear, with coy admissions, that they are the cream of American citizenship. They make it equally clear that opponents and critics are the skim milk of the land and with an odor approaching that of limburger cheese. We wonder sometimes whether bad moments disturb the consciences of those business and professional men who permit themselves to be used as power pawns. We wonder also if they realize that they furnish the narrow margin that enables the power crowd to stand off all opponents and continue exacting toll for Electric Bond & Share. The control, or the dominating influence exercised over public opinion, brought about through the multiple activities of Utah Power A Light Company and its allies, constitutes the greatest menace to representative government that can be found in Utah, and kindred activities in other states make it a national problem of first importance. The power company, aided by its political friends, atundermine, and destroy any independtempts to over-rident thought and action in Utah, thoroughly appreciating the fact that its own survival as a collecting agent for Electric Bond & Share hangs in the balance. Needless to say, its methods would not be tolerated for an instant were free and unfettered thinking dominant in this state. Neither would it be able to procure allies, who, with no evil intent, aid and abet in its program. e, REPRESENTATIVE GOVERNMENT MENACED BY POWER CONTROL OF NEWS AVENUES Among other blows directed at representative government is the policy of the power company of seeking maximum newspaper control. The Utah Power & Light Company has subsidized the boiler plate press to an astonishing degree with advertising that rises but little above a frank and open purchase of news policy. In one insidious way or another the power viewpoint has reached into the editorial sanctums of every Salt Lake daily newspaper. Its publicity agents are talented and alert. Propaganda and "publicity" reaches releases spread through its with two objectives and always proportions, astonishing in mind, first: to exercise maximum control over public opinion and help to create that opinion, and second: to use its dominating position thus attained to maintain unimpaired its status as toll gatherer for Electric Bond & Share. We cite an example of one of its methods of extending its influence into the daily newspaper field: During the summer of 1919 four Salt Lake City editors, one from each daily, made what was called an "inspection tour of the companys plants. The junket was personally conducted by L S. Gilham, publicity director at that time for Utah Power & Light Company. One of the features of the alleged inspection tour was a trip to Yellowstone Park, where the company has no power plants at least not yet. The time spent in the park was leisurely and extended when compared to the swift inspection of the companys plants. Other items that could hardly have to do with power plant inspection were added attractions. The bills were paid by Mr. Gilham. Those four editors are not now employed by surviving Salt Lake City dailies.. Nevertheless the identical policy adhered to then by the dailies on power questions, still prevails. It is flatly charged, and we renew the charge here, that the publishers themselves approve and direct those policies. And so far as we have been able to ascertain those policies have not changed one iota from the time when the umiling and debonair Mr. Gilham did the honors for Utah Power & Light Company. SUPPRESSION OF NEWS It doesnt require a trained newspaper man to know the news value of a Btory that officially convicts the Ltah Power & Light Company of hijacking Utah Consumers out of millions of dollars for the benefit of Electric Bond A Share. That is front page news in any part of the United States, except Salt Lake City. Yet that story was deliberately suppressed by all three Salt Lake City daily newspapers when it broke on July 15, 1932, when the Federal Trade Commission filed its report with the Secretary of the United States Senate. We have unquestioned proof that Mr. George M. Gadsby, general manager of Utah Power & Light Companj to persuaded the management of one Salt Lake City daily for printsuppress the story after it had been set up ready ing. ' In fact Mr. Gadsby has admitted it. The people of Salt Lake City and the intermountain area have depended on Salt Lake City newspapers for of honest, truthful, complete, and undistorted treatment unand fair, the news. Have they received the honorable, biased news service to which they were entitled and to which they had a right to expect? They have not. All three Salt Lake City newspapers willfully and deknowingly violated the public trust in them when they ers rea their liberately suppressed news seriously affecting honor of newspaper code and subscribers. They forgot the when they failed to inform and warn the people of the Bond A depredations of Utah Power A Light and Electric mean Does it Share. What constitutes a Free Press? on home raids in "free to aid and abet financial racketeers town consumers? If that be the interpretation, it is time the people learned of the facts. The methods of Mr. Gilham may have been fmewhat l. Any action by anybody reprehensible and distribution of news contributes to a colored and anti-socia- one-sid- ed high-hande- ol MUNICIPAL OWNERSHIP THREATENED BY ALLIANCE OF POWER AND AFL LAjBOR We may marvel at the efficiency with which Utah Power & Light, for its own use and benefit, succeeds in penetrating into the very heart of service dubs, chambers of commerce, civic organizations, charity groups, daily newspapers, and councils of conservative big shots. But we are simply astounded at the ease with which it seduced the Utah State Federation of Labor and made of it a creature for propagation of highly unsavory maneuvers in the exploitive game of Utah Power A Light Company. Almost from its inception as the central organization of American Federation of Labor unions in this state, the Utah State Federation of Labor, in its annual dedaration of principles, has carried a clearcut, unequivocal statement favoring public ownership of public utilities. For a generation its honored leadership has consistently advocated and fostered public ownership movements. The Utah Power A Light Company was ruthlessly n from the hour of its birth. All through the years it had fought the labor movement and successfully staved off affiliation of its employees with the American Federation of Labor. It promoted and sustained a "comn measure. In its anti-labpany union as an fight it left no stone unturned, even carrying its baleful influence into the organizations into which it had intruded itself. However, with the advent of the new deal, and the ascendancy of trade unionism in national affairs, it became obvious that the power industry would be unionized. Thereupon Electric Bond A Share and Utah Power A Light Company seized the opportunity to make a virtue of necessity and extract major concessions for its inevitable recognition of the union. And in the of the Utah State Federation of Labor it received ample compensation for union recognition, for it acquired one more ally or tool to do its legislative dirty work. Both sides, for value received, threw their cherished principles into the ash can. The impossible actually The Utah State Federation of Labor announced abandonment of its principles, relating to public ownership, in favor of private exploitive ownership of utilities. The Utah Power A Light Company, we understand on direct orders from Electric Bond A Share, dropped and extended recognition to the Interits national Brotherhood of Electrical Workers, a State Federation, and AFL affiliate. The canny power company and the almost uncanny Utah State Federation of Labor have now buried the hatchet. They are more than bosom friends. The power company has probably already forgotten its extended flirtThe two ation, (or was it marriage?) with A. C. Rees. outfits now "bargain collectively. They also plot and scheme that way. The power company, in its 1938 report to stockholders prided itself on its present enlightened labor policy. It should. Among other net gains it has an additional group it can "use, and it is no longer annoyed with "subversive agitation from the labor temple. The story is still in the making. The Utah State Federation of Labor in convention assembled at Price, Utah, on September 19, 1939, actually adopted, without a dissenting voire, a resolution whereby it has attempted to strike a deadly blow at its former principles and friends. The Salt Lake City Tribune, in its issue of September 1939 reported the resolution as follows: 20, Another possible controversial subject slid through without opposition when the convention approved a resolution seeking legislation placing all utilities, private and publicly owned, under the supervision of the Utah Public Service Commission. The resolution was reported out without recommendation by John Holden of Price, chairman of the law and legislation committee, but a motion for its adoption by the convention failed to draw a dissenting vote. When it is recalled that the Utah Power A Light decade Company has made an unending fight for the past the under utilities owned jurisdiction to force the publicly of rSCU, the revolting nature of the Federation's betrayal of its former principles becomes apparent. It has not only turned its back on its old time precepts and on the program it once advocated, and for years sought to effect, but it became, with considered intent, and without a dissenting voice, the catspaw of Electric Bond A Share and Utah Power A Light Company in their bitter war on municipal plants. It is the most abject and pitiful exchange of principle a for "mess of pottage that has occured in the history of Utah. There is only one word that aptly describes it, a word that the exigencies of modern life has forced upon anti-unio- anti-unio- or right-about-fa- ce oc-cur- time-honor- ed For to anyone who is at all conversant with utility questions in Utah (and that obviously includes the Federation of Labor) it is entirely clear that if local communities are permitted to govern themselves and to regulate their own local affairs, and their community undertakings, those projects are safe. They cannot be enmeshed, blocked, overridden, nor destroyed by power company intrigue. But if supervision and jurisdiction over them be placed in the hands of an appointive commission, a commission unresponsive to the electorate, and traditionally more than friendly to corporate exploiters, it means ultimate extinction of publicly owned power plants. The road will be painful. But if the new allies succeed in obtaining legislation as they hope to do, it takes no prophet to forecast the slow and steady strangulation of municipal ownership of utilities. And let every honest citizen remember that once the people's plants are destroyed and competition removed, there will be no restraining hand on power company avarice. Who, knowing the story of utilities in Utah, will believe for an instant that PSCU will stand in the way of heavy rate increases if Utah Power A Light Company really undertakes to obtain higher schedules? One thing in the future is clear if the people of the intermountain states desire to have cheap electricity, they dare not allow their publicly owned plants to be "regulated out of existence. The only reason why the city of Logan was able to throw off the power yoke and keep it off and regulate its own affairs in accordance with the needs and wishes of its people, was its ability to escape jurisdiction of PSCU. The power company waged a long and consistent fight to bring Logan under PSCU, but the Supreme Court sustained Logans right to freedom in one of the memorable decisions of its history. Now we observe the power company at it again, but operating this time through the soiled hands of its new puppet Its program remains the same, namely to bring the municipal plants of Logan, Brigham City, Murray, Lehi, Provo and other cities under jurisdiction of PSCU. And if the people of Ogden and Salt Lake City, or elsewhere, Bhall presently authorize establishment of municipal plants, it plans to smother them also with the suffocation and blight of PSCU. And the present leadership of the State Federation of Labor, forgetful of its honor and dignity, leads off in the impending battle for legislation that has for its undisclosed aim the tortuous death of the peoples municipal plants. Former State Federation of Labor officials express amazement, anger, and disgust at the willingness of their successors to barter away lifelong principles. It must not be forgotten that Federation and affiliated interests maintain lobbyists efficient ones at sessions of the legislature. Neither should it be overlooked that A F. of L. labor scrutinizes rather carefully the candidates for legislative posts. Moreover it conducts discussions with candidates designed to bind them securely to Federation policies. Naturally if candidates have A F. of L. labor support they subscribe to the Federations program. Now with the Federation's program contemplating destruction of municilabor legislapal plants it is apparent that! with tors added to power company legislators, the power companys efforts to rid itself of municipal competition has an excellent chance of success. And the danger becomes more apparent when it is realized that the Utah State Federation of Labor is supported by its affiliates, many of whom also employ lobbyists. There is the hope, however, that individual unions affiliated with the State Fedreation will disavow the action of the Federation convention and adhere to the clean policies of former Federation administrations. Until the individual unions take action or make their positions clear, it must be assumed that the shamful procedure at Price now makes it more or less obligatory on A. F. of L. affiliates to stand by the power company in its fight It places all of the pressure the American Federation of Labor is able to bring in Utah on Utah legislators by no means a negligible weapon at the complete disposal ef Electric Bond A Share and Utah Power A Light Company. All that now remains to be done to complete the n power-labtouch to the hookup and give an Infamous alliance, is to bestow title of in the State Federation of Labor on Adam Bennion and George M. Gadsby, and elevate Paul M. Petersen and Joseph R. Wilson to the board of Utah Power A Light. -- pre-electi- Friday, October 20, 1939 The company, soon after organization, developed and brought to a high state of efficiency, a system of using forms of law and court procedure far striking advance blows at possible competitors. Why, argued the new exploiters, sue on equal terms when an unexpected blow beneath the legal belt will conclude a fight before it starts? It was the modern doctrine of "frightfulness applied to legal procedure. LAW AS OFFENSE WEAPON STRIKES AT MUNICIPAL SAFETY AND PROGRESS Accordingly, when the City of Lehi was about to enter into a contract for erection of a municipal power plant the department of legal trickery of Utah Power A light entered the arena. The community desired to have immediate judicial determination of the question of validity of its bands and its right to proceed with its electrical program. Knowing ' that the power company probably would initi- ate an adverse action! in the lower courts, G. F. Barnes, a citizen of Lehi, Instituted a friendly test suit In the State Supreme Court, seeking to enjoin the Mayor and Council of Lehi from entering into the proposed agreement The Utah Power A Light Company, not as a party to the action, but in a role of "Mend of the court", the that argued extensively Supreme Court lacked original jurisdiction, that the action of Mr. Barnes should have been brought in a lower court Had it believed that the injunction would have been granted by thef court, the company would have been well satisfied, because in such an eventuality the municipal plant at Lehi would not have far-fetch- ed been built However, the power companys attorneys were convinced the court would refuse the injunction, thus ciaaiHiif away all legal obstacles to Lehis program. Therefore the company presented the argument that the court lacked jurisdiction. The purpose of the companys intrusion into the test case was not to obtain justice; not to have a speedy determination of the Issues. Rather it was to obstruct the orderly procedure of Lehi City and compel it to start its action all over again in a lower court, where the ity would face interminable delays brought by the stiff resistance of the company at every step. Should the city win in every move in the lower courts the action eventually would again appear in the supreme court for final determination. It might take years to conclude the case. The obvious purpose of the legal staff of the power company was to force delay after delay until such time as the city of Lehi, becoming weary, would give up the struggle and consent to remain a docile producer of revenue for Utah Power A Light Company. The company sought to utilize the necessary, fair, and ordinary rules and procedure of Utah courts as a subversive weapon to break the community spirit of Lehi and create a precedent for all other Utah communities to ponder before they should havd the temerity to question the right of Utah Power A Light to rule. However, the supreme court assumed jurisdiction and refused the injunction. Lehi won its fight. so-call- LOGAN The attempt of Utah Power A Light Company to force the municipal plant of Logan under jurisdiction of the Public Service Commission of Utah is another example of monumental effrontery to which the company seems to be addicted. For almost a generation the company and its predecessor concerns had used about every means that could be devised to destroy the city plant. With the entry of Utah Power A Light into the field the fight became intensified and the system of enlisting the aid of local men of high standing was begun. Other tactics lawand tricks devised by wily strategists and followed in succession. yers rapid But always in the later years two of the most obstinate and uncompromising Scandinavians west of Minnesota stood in the way. Mayor A. G. Lundstrom and City Attorney Leon Fonnesbeck won every major contest in a struggle that seemed as persistent as death and taxes. Fortunately Logan had the good sense to sustain its officials and return them to power every election. The power company finally recognized the futility of direct attacks on the city plant. However, it endeavored to accomplish by indirection the destruction it had found it impossible to bring about in open attack. It devised and adopted the smart strategy of attempting to force Logan under jurisdiction of PSCU where a dire and unbeatable Lau? as a IDeapon of Offense process of strangulation could be instituted. With, a corporate-minded commission supervising the Logan plant, conceptions of law as the protector of the company correctly, surmised that obsequies of its suclife and property, and as the dispenser of justice in con- cessful competitor would soon be announced. flicts between men, were on a high plane in the olden days The scheme looked flawless. If the company could have in Utah. In this State, as in no other part of the nation, an arm of the state government do for it that which it men united in the belief that in the majesty of unpolluted could not do for itself, and with no apparent expense, Utah law, maximum human welfare was attainable. Indeed, Power A Light Company would occupy an enviable position. throughout the Rocky Mountain area the universal accept- It could sit back and enjoy life with an air of seeming disance of unfailing respect for courts and lawful authority interestedness while PSCU imposed regulation upon reguwas attested in that expression of faith, "We believe lation for the guidance of Logans officials. in obeying, honoring and sustaining the law. But as usual Lundstrom and Fonnesbeck barred the Such was the general attitude toward law and political way. In a memorable struggle, too long to detail here, institutions in the era preceding the advent of the mis- they put up a winning defense and finally emerged with a conceived offspring of Electric Bond A Share. Men sought supreme court decision sustaining Logan's right to reguor turned to the law only for adjudication of wrongs. late and conduct its own affairs in its own way. Never had they looked upon it as a new and potent weapon But Logan had not long to rest George M. Gadsby of offense. They believed the law should be invoked only and the "assistant to the president refused to give up. for protection and not as a means of destruction. When they1 found the doors and windows of the municipal With Utah Power A Light came a direct reversal in plant closed against them they looked for the the attitude of respect toward law and institutions of They found it in their alliance with the Utah State Federagovernment. The idea soon was abroad that newspapers, tion of Labor, detailed elsewhere in this booklet civic organizations, law and the courts, departments of OGDEN government indeed all elements of organized society, could be harnessed and used as stepping stones to ruthless and us, Lousy. The Ogden City Commission passed an ordinance prooverpowering financial success. Nothing appeared to be la Utah Power ft Light and immune or sacred. The slimy tentacles of 71 Broadway It would Mem that hifhfr-np- s for revenue bonds to finance construction of a n bnlld-lviding character mbs of IU allies and friends, mliht patronise ths comreached Even into life. churches of Than ths form community power and honor every with profit. municipal oreanlsatlons", plant But before the program became effective on Its Investment In such were invaded. pany mlht obtain double returns (Continued on next page) anti-unionis- m or over-brig- ht ultra-moder- Time-honor- ed .... coal-chut- e. |