DISSOLUTION OF THE NATIONAL ELECTRIC LIGHT ASSOCIATION Mr. BIDDLE. In response to a question of mine, Mr. Kellogg described, or I described the institute as being the spiritual successor of the National Electric Light Association. He said he thought he agreed to that characterization. Would you also agree to that? Mr. WEADOCK. I wouldn't think so; no. Mr. BIDDLE. Is it in any sense a successor to that association? Mr. BIDDLE. Were you counsel for the National Electric Light Association? Mr. WEADOCK. Yes, sir. Mr. BIDDLE. And its general manager or executive director, or—I forget the term. Mr. WEADOCK. Well, I believe that I was managing director of the National Electric Light Institute. Mr. BIDDLE. You are not uncertain about that relationship, are you? Mr. WEADOCK. Not a bit; no, sir. Mr. BIDDLE. You said you "believed." Mr. WEADOCK. I am just believing because I wanted to get the date straight. Mr. BIDDLE. Yes. Mr. WEADOCK. My recollection is I was appointed managing director of the National Electric Light Association in 1932. Mr. BIDDLE. And when did that association dissolve? Mr. WEADOCK. 1933. Mr. BIDDLE. Was that during the investigation of the Federal Trade Commission, and somewhat as a result of the facts revealed in that investigation? Mr. WEADOCK. I would rather say that it was dissolved as a matter of the misstatement or exaggerations of the Federal Trade Commission, rather than the facts. Mr. BIDDLE. I didn't realize I had said the "facts," but anyway it was dissolved as a result of the activities of the Federal Trade Commission. Mr. WEADOCK. As you say "activities," I would say yes. Mr. BIDDLE. Did you give us the date of its dissolution? Mr. WEADOCK. The exact date was sometime in, I would say March 1933. Mr. BIDDLE. Where was its Washington office? Mr. WEADOCK. It had none. Mr. BIDDLE. It had no Washington office? Mr. WEADOCK. No. Mr. BIDDLE. Where was its office? Mr. WEADOCK. New York City. Mr. BIDDLE. Where? Mr. WEADOCK. Lexington Avenue, 420 Lexington Avenue. ORGANIZATION OF THE EDISON ELECTRIC INSTITUTE Mr. BIDDLE. After it left that office, did the Edison Electric into the office left by the old association? Mr. WEADOCK. We took half of it. Mr. BIDDLE. You took half of the office? Mr. WEADOCK. Yes, sir. Mr. BIDDLE. Rubbed the name off of the door and put your name on it? Mr. WEADOCK. No, we did more than that. We canceled the lease for larger space and took about one-half of the space in the same office and continued our operations at that office. ACTIVITIES OF THE NATIONAL ELECTRIC LIGHT ASSOCIATION Mr. BIDDLE. Was the old National Electric Light Association that association which had on its pay roll or contributed to the expenses of a large number of professors and educators in this country to help its educational work? Mr. WEADOCK. Do you want to review the Federal Trade Commission investigation in detail? Because if you do, I would be very glad to go into it elaborately. Mr. BIDDLE. No, Mr. Weadock, I simply want to have you answer questions that I address to you. Mr. WEADOCK. I know, but your question is rather broad. I didn't want to be confined to a restricted answer. the question. If you will repeat Mr. BIDDLE. Would you repeat the question, please? (Question read.) Mr. WEADOCK. I don't believe it had any on its pay roll, and I think you will find that the Federal Trade investigation report will show that the majority if not all the members of the profession who were in the electric light and power work received, on technical subjects, compensation for attending conventions. You must remember too that the old association had as a membership a group classified as professors and educators, and they were actually members of the association, participating in the engineering, technical and other problems of the association. Mr. BIDDLE. Did the association contribute $15,000 a year to the Massachusetts Institute of Technology? Mr. WEADOCK. It did, and it did it for a technical research, which I feel it should take pride in doing. Mr. BIDDLE. What was the work, just very briefly? Mr. WEADOCK. I couldn't tell you. If you want me to, I will have to look up the record. This thing happened 8 or 9 years ago, you know. Mr. BIDDLE. Yes; I understand. Now, could you perhaps specify the difference in the aims and purposes of the Edison Electric Institute and the old National Electric Light Association, if there are such differences. ORGANIZATION OF THE NATIONAL ELECTRIC LIGHT ASSOCIATION Mr. WEADOCK. Yes. The National Electric Light Association was organized in 1885 as the Trade Association of the Electric Light and Power Industry. It functioned from that date until 1933. The members of the association were individual members who were engaged in the business. There were manufacturers who were likewise members; there were honorary members; and then the technical membership, classified by groups, into professors in our leading universities who had to do with technical phases of the business. That was the scope. As I recall offhand, and when I am doing this, I am doing it offhand, you understand, the membership was composed of about 15 or 20 thousand. CONTRAST BETWEEN THE TWO ORGANIZATIONS The new institute changed the set-up in that it eliminated from its membership the manufacturers, any other special members and confined the membership to three groups. Mr. BIDDLE. What was the purpose of that elimination of manufacturers? Mr. WEADOCK. Just a minute, until I answer the question, please. The three groups were operating companies, holding companies, and honorary members. Now, I will answer the question. Mr. BIDDLE. What was the purpose of the elimination of the manufacturing group? Mr. WEADOCK. Because when the Edison Electric Institute was organized, the purpose was to make it an operating company proposition, and to forego some of the practices of the National Electric Light Association which involved joint action, and to restrict the activities of the institute. Mr. BIDDLE. What practices do you refer to which involved joint action? POLICIES OF THE NATIONAL ELECTRIC LIGHT ASSOCIATION Mr. WEADOCK. Well, I would say that the National Electric Light Association had a division which I think it called "public policy," which more or less dealt with public questions. Mr. BIDDLE. Such as Government ownership and operation, for instance? Mr. WEADOCK. I think that was one of the questions. Mr. BIDDLE. Dealt from an educational point of view with those policies? Mr. WEADOCK. Mr. Biddle, I never liked the word "educational." Mr. BIDDLE. Do you like the word "propaganda" better than the word "education"? Mr. WEADOCK. No; and I think there is quite a distinction between the two. I have no aversion to "propaganda" as such when it is confined to its real intent and purpose. I believe that an industry such as ours has a perfect right to inform the public. I think it is its obligation to inform the public. Mr. BIDDLE. So do I. Mr. WEADOCK. Provided it is done honestly, openly, fairly, and accurately. Mr. BIDDLE. And gives both sides of the picture? Mr. WEADOCK. No; I don't feel there is any obligation to give both sides. Mr. BIDDLE. Then you agree with Mr. Kellogg that your obligation in educational work is to give one side of the picture? Mr. WEADOCK. We are not engaged in educational work. Mr. WEADOCK. Mr. Kellogg and I agree on many things, but I think to educate the public, for instance, is a phrase that is covered with moss. Acting Chairman SCHWARTZ. Would the term "inform the public" be better, regardless of whether you call it educational propaganda, or what not? Mr. WEADOCK. Well, Mr. Chairman, I think "information" is perhaps the proposition. Now, we are not partisan; it is not our purpose to be partisan. That is not our obligation; that is not the thing we are doing. We are a service organization for member companies. Mr. BIDDLE. Not being partisan, you don't take part in any controversy? Mr. WEADOCK. I would say that was true generally. Mr. BIDDLE. What are the exceptions to your generality, would you say? Mr. WEADOCK. I would say that in the course of events we put aside our true technical role to assist in a legal determination of the constitutionality of some of the activities of the Government, which we believe to be unconstitutional, but I don't think that is partisanship in the way you mean it. Mr. BIDDLE. Well, I hadn't that in mind. I had more in mind. some of your published statements and booklets. However, have you in your hand the constitution or bylaws of the Edison Electric Institute? Mr. WEADOCK. Yes, sir. POLICIES OF THE EDISON ELECTRIC INSTITUTE Mr. BIDDLE. Now, you described the purposes of the former National Electric Light Association. I don't think you gave me the differences between that and the Edison Electric Institute. Perhaps the best way of doing it would be to describe the purposes and policies of the Edison Electric Institute, and then qualify the differences between that and the older organization. Would you like us to put this in as an exhibit? Mr. WEADOCK. What I would like you to do is to let me make my statement, and then cross-examine me. Your approach is not in conformity with an orderly presentation of facts, and I assume it is facts you want. Mr. BIDDLE. I am sorry to be characterized as disorderly, but I thought I should at least lay the basis of the point of view of your organization before getting into the more detailed examination; so if you will permit me, I will go along a little further on my own line, and then I will stop and let you give a complete statement. Mr. WEADOCK. That is all right. Mr. BIDDLE. That is sporting, isn't it? Mr. WEADOCK. That is, you mean this is just introductory? Mr. BIDDLE. This is just introducing you to the members of the committee. Mr. WEADOCK. Shoot the works. Mr. BIDDLE. Will you please mark this "Exhibit No. 465,"—the constitution of the Edison Electric Institute? (Whereupon, the document above referred to was received in evidence and marked "Exhibit No. 465.") Mr. BIDDLE. Now, I think the last question was if you would describe the purposes of the Edison Electric Institute and then show the contrast about which we had asked. Mr. WEADOCK. The objects of the Edison Electric Institute, as contained in its constitution, were, first Representative JENKINS. Mr. Chairman, may I ask a question? Is the Edison Electric Institute under investigation here, or what is the reason you have to go into the details about this? Mr. BIDDLE. Is this addressed to counsel? Acting Chairman SCHWARTZ. This is preliminary in order to show the interest of the witness and what his general situation is. I don't think there is anything irregular about it. I don't think he does. Mr. WEADOCK. Well, I think this gentleman was absent when we started. Mr. Biddle then stated that I requested, in the name of the institute, an opportunity to be heard before this committee, and Mr. Kellogg testified, upon the subject of my request, that Mr. Biddle's investigators inquired into the institute, and we gave them the information they desired, and I understand I am here to present that material. Mr. BIDDLE. Well, you are here, Mr. Weadock, to present that and anything else that you wish. Mr. WEADOCK. Well, then, the sooner I get started, the quicker we get through, I think. Mr. BIDDLE. Well, then, would you answer the last question? Mr. BIDDLE. I asked you to describe the aims and policies- Mr. BIDDLE. Of the Edison Electric Institute. Mr. WEADOCK. The first object is the advancement, in the public service, of the art of producing, transmitting, and distributing electricity, and the promotion of scientific research in such field, and the ascertainment and making available to members of the institute and the public factual information, data, and statistics relating to the industry. Third, to aid its operating company members to generate and sell electric energy at the lowest possible price commensurate with safe and adequate service, giving due regard to the interest of consumer, investor, and employee. Those are the main objects. At the time of the organization of the institute, a very careful, detailed study Acting Chairman SCHWARTZ. Would you mind telling us when the institute was organized? Mr. WEADOCK. In 1933. Acting Chairman SCHWARTZ. At what time? Mr. WEADOCK. I would say it became a working organization inActing Chairman SCHWARTZ. I was particularly interested to know when its organization was initiated rather than when it became fully developed and got to working. Mr. WEADOCK. The first meeting to organize was held on January 12, 1933. Acting Chairman SCHWARTZ. Thank you. Mr. WEADOCK. It took some time to organize and become an active operating institute. Acting Chairman SCHWARTZ. And that time was when? When did it become active? Mr. WEADOCK. I would say it was March 1, 1933. Mr. BIDDLE. What relation had March 1, 1933, to the date of the Electric Light Association going out of active work-how close was it to that? Mr. WEADOCK. I would say it was practically the same date. Now, then, as I was stating, at the time of the formation of this organization a detailed study was made of the Trade Association activities of the industry. And as a result of that study, we felt that there was a need for the establishment in the industry of a code of business principles to govern the activity of the association, and also the activity of |