The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1920-07-15

COSl VI UlOuSy anu the CTeull Ol pun
lie utilities" Mr.. o. B. Wilcox, an
investment banker, called attention to
the fact that the business conditions
which have made il difficult to obtain
new capital for new industries, has
resulted in unprecedented demands
for utility service. 1t is so much
easier to pass the load to the electric
or gas plant, or the power station,
than it is to bother with the problems
of labor, fuel and equipment, the pro-
duction cost is simply passed on to
the consumer, and in the end it rep
resents only trifiing addition to the
cost Of living relative to increases in
the cost of other necessities.
Everyone must have noticed that
the individual gas or steam engine has
almost disappeared from machine
shops, printing Offices and small manu-
featuring plants, and the central pow
er station in cities has grown in popu-
lar use. This all looks like good busi-
ness for the utility men, but Mr.. Will
cox calls attention to the methods Of
regulating the utilities. 1T is a mat
ter of record" he says, that under
regulation utility rates have not been
increased in proportion to costs OF
operation; they have not been in
creased within measurable distance
of the point at which the same ser
vice could be obtained by other means;
they have not been increased as rap
idly as the costs Of operation have in
creased; and in consequence net earn
ings applicable to interest and divi-
dends have shrunken, and the market
value of utility securities has declined
out of proportion to the decline of Sc
curities in unregulated industries; this
in a time Of unprecedented industrial
activity. of unprecedented shortage of
the products of industry, of unprece-
dented demand for all kinds of utility
service and Of large profits in practi-
cally every branch of American enter
prise excepting only the regulated in
dustries"
Mr.. Wilcox believes that local own.
ership Of the utilities will create
closer interest in the affairs of the
companies. Local stockholders, who
are also customers" he says, will
examine utility problems from both
points Of view and help in their solu-
tiOn Every utility should distribute
its stocks in the territory served, but
no utility can afford to offer its secu-
rites to its employees and customers
unless the are sound and protected
by fair margins of earnings against
danger of the passing OF the dividends
or default in interest payment"
The government is ready to do bus
mess under the new water power act,
and the commission to administer the
act will be composed of the secre-
taries Of war, interior and agriculture.
The new law is said to be satisfactory
to the investment public and to the
"conservatiOnists." statement from
the forestry service at Washington
comments on the power situation as 1t
confrOnts the country. Until fuel
ment, steam power was going down.
With the advance in coal, which has
doubled in price in the last five years,
the opposite result was brought about
and every further increase in the cost
cf cCal will put up the price Of steam.
Since the bill passed the senate there
have been applications prepared for
the development Of 500,0 900 horse pow
err" Under good business conditions.
the same authority estimates, that
5,0O0,OO000O horse power from water
will be added to the present output
in the next five years.
In every part of the country there
are water powers that are unused,
either because the legislation in force
prevented, or because of some condi-
tion that made steam power cheaper
and more feasible Most of these con-
ditions detrimental 10 water power
development have been remedied; and
it is high time for the different Sec
tions of the country to investigate
most thoroughly, with the ADVANTAGES
of the new legislation in mind the nat
ural water powers in their different
regions, that are capable of being
harnessed
A statement by the president of the
United States Chamber of Commerce
says that there is evidence that the
country is awaking from its recent
orgy Of extravaganza, and that thrift
will take its place as an instrument
this high altitude in the business
world we are advised that "produc-
tion in this country will never be
threatened by Bolshevism and other
isms," to which Is added the finale