Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-06-18
HOOVER ON ELECTRICAL De.
vELoPMENT

nOOv6h YIN GE6N htSAG LIZ
vELoPMENT
The news of Wednesday morning
reported negotiations for taking over
by the Middlewest Utilities Company
of certain light and power interests
in New Hampshire. This is the
great company that is expected to-
take over the Central Maine Power
Company's interests in Maine and
which Is said to control public
utilities valued at eight hundred mil
lions.
Last evening Secretary of Com
merce Hoover addressed The Ma
tional Electric Light Association at
San Francisco on the subject of
Estate VS.. Federal Regulations, de-
claring that we are in the midst of a
great transformation in the develop
ment Of electrical power, which he
terms Capitalization of power
houses and interconnection of dis
tribution systems, instead of the
terms: "superpower" or giant
power.
This evolution he said starts from
the scientific discovery Of long dis
lance power transmission. Already
our people have substituted $500
k. ". h. per family for muscle,
where ten years ago it was but $50
K. W. h. All this development he tells
US is moving silently but stupendously
right before our eyes; that It is only
q natural development. The power
district has taken the place of the in
dividual town system.
"The power district. to quote
further, "is making possible the ex-
tension Of the service to the farms.
At our present rate of increased re-
quirements. by 1880 central stations
for tho country will probably need an
additional capacity of fully 800
carrying them UP to nearly s6'mil-
lion morse power. Probably five bill
Hon dollars Of additional investment
will be required. And right now the
demand for soft coal is not sufficient
in this country to enable the mine
operators successfully to operate
their mines In many instances. Such
development by coal Of electrical
power should improve the bitumi-
nous coal situation, but before that
time arrives probably effort will be
extensively made to get the most
possible from the water powers. Mr..
Hoover declares. however. that east
of the Mississippi where 76% Of our
power is generated today. II every
drop Of our water that is econom-
ically useful were actually harnessed.
they could supply less than 15To of
the requirements.
Regarding what he considers
some anxiety in the public mind as
to whether public interest is or will
be adequately protected in this great
transformation" he tells us that we
must face the fact that in order for
this development to produce econo-
mics 1t must evolve into the large
enterprises. vast consultations" /,
great security issues and the like. AS
a consequence he sees the need
OF government regulation. He recog-
nlzes the anxiety inherited from
the bitter chapter of exploitation
when the railroads went through
similar era of expansion ~.
He notes what he considers a
POSITIVE dlfrerence in the stage
setting Of electrical development;
that electrical utilities have been
under regulation practically from
the day they were born; that public
opinion is more alert: that those
who dominate electrical development,
the majority of them, belong to a
new school Of public understanding
as to the responsibilities of big BUSH
ness to the people.
From what is being done by the
several States he concludes we are
developing "a science of regulation /,
that the laws written in the State
statute books are sufficient to protect
both the public and the industry,
but We must ascertain whether the
service Is adequate and the industry
progressive in its provisions for
future need, whether the rates are
reasonable. AS 1t is, our service
leads the world and improves every
year. The rates are slightly below
pre-war rates despite an increase of
1000 In wages and the increase in
the price Of supplies: the technical
Improvement In lamps has resulted
in a four-fold increase in the amount
OF light dispensed for the same
money. AS a conclusion of all this
Secretary Hoover finds that in a ma
tion-wide sense our State Legis-
latures have been equal to their task.
riiar likewise democracy is demon
strating its ability to retain master
ship in its own house. He declares:
Nothing will produce worse service
than to attempt to transfer local
problems to absentee solution at
Washington.
He recognizes public relationship
problems; difficulties attending valu-
lations for rate-making; the i'm
Iportance of enabling the whole ma