Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-04-16
Power Export Law
iContinued from Pace Qnel

Continued from Page One)
! First, where a Maine operating COM
pany is engaged in generating and
| distributing over a district embrace
| ing two or more states, and second,
where a Maine operating company
sells power in a neighboring stateK
| the latter instance also embracing
| the "Interconnection" between dis
tricts lying in different states. AS
! to the first series of cases to which
I have referred, 1t has been estab-
lished by the courts in analogous
! instances that the state commissions
have the power and authority to
| establish Reasonable Rates to
their consumers whether the prop
erty may be wholly within their state
or not. In the second instance,
while this case may be held to be
interstate commerce and therefore
f, the contract is not subject to the
| approval of the Maine Public Utili-
/ ties Commission, the latter can as
certain the rates given by the local
| company to the company in the ad-
| joining state. Should these rates be
| discriminating against Maine con-
sumers the Maine Public Utility
Commission still has control of all
rates charged in Maine and of the
| Maine operating company. They
| could make it SO hot for the local
company that this discrimination
would soon be removed.
aside from all legal aspects of
/ this question the Maine operating
companies themselves have no in
centixe to make lower rates to out
| Of-the- State consumers. Such q
policy would encourage the growth
of territories other than their own
which Is exactly what they do not
want to do. Their best future lays
in having the retail business increase
at home. Furthermore such a policy
would jeopardize their investment.
j The policy of letting themselves be-
! come a power house for the rest of
New England places them with no
market should a competitor appear
with cheap power in their out-of-
state field. They thus see them
selves with their millions invested
and no income to pay dividends I'M
til they can build up a market at
home. NManifestly such q policy Is
absurd.
Would Garry Surplus
! 1T has been stated that II our
power were transmitted over expen-
sive, transmission lines to places out
of the State and then the power was
recaptured for us in Maine 1t would
be necessary to add the cost of these
transmission lines to our own rates.
In reply, if all Maine power were
grouped it would probably never go
out over more than one large ex-
! pensive transmission line-Maine
hasn't enough power to warrant
more. This line would be carrying
surplus. 1t would be the best policy
to keep the surplus continually and
materially above Names demands
for three reasons: first, to have a
surplus in Maine to attract new in
dustries; second, to have the extra
taxes and earnings that the addi-
| t1onal power houses and lines would
bring into Maine; third, to pay for
the maintenance and interest on this
line. When all of Names power is
| finally consumed in Maine the great
industrial growth throughout the
state would make the charge for this
line insignificant. In fact such an
lnterconnection would be an eco
nomic necessity to guarantee Maine
an uninterrupted electrical service
Just as other states have found 1t
necessary to interconnect today"
| What Business Would Do
The speaker next touched upon
the popular vote" idea and choose
TO hken the power situation to what
a business would do were IL called
upon to act in a similar instance.
Assuming that the State were a
large business organization confront
ed with this problem" stated Col,
farnum, there would be no cues
tlon about its procedure. A group
OF the Company's best brains would
begin to. study and analyze the situa-
ton. They would call in experienced
and impartial advisors whose opin.
ions could be accepted and finally
they would spend some money in
having an analysis made from ar
economic and business standpoint
They would then arrive at a decision
to go ahead or reject the plan.
Such an investigation is exactly
what the business man and the So
called power interests want the State
to make. They wish to go farther
They want these facts put before
the people and allow them to vote
on 1t. This is exactly what the poll
ticians of our State do not want.
When man is sick he sends fol
a doctor. When farm is not pay.
ing, the farmer seeks the opinion
of, experts. You don't put your pa.
tient or your farm or business III
for political wrangling, where each
expounds his ideas along lines best
considered to get himself or his par.
ty the greatest number of votes. Yet
this is exactly how our water power
policy is scheduled to be handled
by the do-nothings during the next
| year.
I'm recent years." went on the
speaker, those interested from a
business point of view have gone
before the legislature with their
proposals, have met and put up with
much abuse, have become pretty
well dlsgusted with the results, and
have gone home in silence, leaving
the battle field to, the politician. For
example you are familiar with the
! Dead River Storage bill in 1923, how
the passage was prevented by politi-
cal pickering over $1.OOO.OOO pay.
ment to be scattered over 20 years
and the legislature had hardly ad.
| journed before q flood came down
the river and did $1,OOO.OOO damage
in few days. We are at the pres.
ent time threatened with a similar
situation which may be more serious
than the 1923 freshet.
Suspicion Created
Gas have stated before suspicion
has been created against the power
interests. And yet for my own com.
pany / believe there is less ground.
for suspicion than almost any bust.
ness in the State. Our profits hav,
been very reasonable and are a mat.
ter of public record open. to inspec.
ton olir hllsinaaS Il raoillatod h,r q