Smithsonian's Stone

The Smithsonian Institution, established in Washington 84 years ago through a $508,000 legacy from the illegitimate son of the first Duke of Northumberland, for "the increase and diffusion of knowledge among men," is governed by a chancellor and a board of regents. The chancellor is always the Chief Justice of the U. S. In addition to three Senators and three Representatives, the board of regents is composed of six citizens, most honorable and learned. Such a citizen board member was Charles Evans Hughes until his appointment as Chief Justice automatically advanced him to the Smithsonian chancellorship.

To succeed Mr. Hughes as a citizen board member, Charles Augustus Stone was chosen. Tall and spare and resolute, Mr. Stone is chairman of the board of Stone & Webster, Inc., which began as a humble partnership between himself and a Harvard classmate (TIME, July 8). Their engineers have constructed central plants which today supply one-sixth of all U. S. citizens with power and light. Under them also have risen great factories, hotels, schools, Army camps. In addition to their buildings, Stone & Webster, Inc. own and operate public utility services throughout the lands. Among the companies which they manage, in which they have a potent interest are Virginia Electric & Power Co.; Puget Sound Power and Light; Eastern Texas Electric Co.; Lowell (Mass.) Gas and Electric Co.; Savannah Electric & Power Co.; Tampa Electric Co.; Western Public Service Corp. (Nebraska-Missouri).

Before Mr. Stone could take his seat on the Smithsonian board with Robert Somers Brookings (board president of St. Louis' Washington University); Irwin Boyle Laughlin (Jones & Laughlin, steel; U. S. Ambassador to Spain); John Campbell Merriam (president of Washington's Carnegie Institution), Frederic Adrian Delano and Dwight Whitney Morrow, Congress had first to pass a joint resolution approving him. With quick and courteous unanimity, the Senate approved such a resolution. Next day Wisconsin's Progressive Senator Robert Marion La Follette rushed upon the Senate floor demanding withdrawal of the Senate's approval of Mr. Stone. The La Follette objection: Mr. Stone is a public utility tycoon.

Though it seemed a far cry from the Smithsonian board to power companies, Senator La Follette recalled the connection:

In 1927 one Samuel S. Wyer investigated the government-operated hydroelectric power system in Ontario, concluded that it was not so good as it had been pictured by those in the U. S. favoring the same system. The Smithsonian Institution naively issued the Wyer report as one of its official documents. Power companies promptly seized upon this Smithsonian publication as a prime piece of authentic propaganda for use in their battle against the Progressive proposal for government operation of the Muscle Shoals plant. Nebraska's Senator Norris at that time denounced the Smithsonian for permitting itself to lend aid and comfort to his enemies, the power companies.

Characterizing Stone & Webster as "one of the greatest power organizations in the U. S." Senator La Follette exclaimed: "The Senate must have an opportunity to decide whether we are to continue the policy of filling key positions with representatives of the power trust." The Senate acceded to Senator La Toilette's demand, rescinded its approval of Mr. Stone's appointment, agreed to reconsider the matter later.

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