Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-03-20
u.,re's Interests Would Not
4. Jeopardized Even if Half
Million Horse Power were
Sent Beyond Border, Col.
Farnlm Declares in Port
l.nd Address-Warns Indus.
rial Growth Hinges on Ques-
ton

ton
portland. Mar. 19.-Claiming that
,ev.r rates always have been. and
.,doubtedly always will be, deter
-,.d BY economic conditions, Col.
m Farnum Of Augusta, speaking
:, ,be Bond Salesmen's Club Of
port,and tonight explained that
Maine people had nothing to fear
.,oud surplus electricity be export
"A nom the State.
There is no Federal law on the
satute books today" continued the
maker" which authorizes the In
,.rstate Commerce Commission or
,rv other government agency to reg
ulats interstate power rates. Less
than percent Of the developed
,over in the United States crosses
aate lines and there is no indica-
.Ion that this percentage will in
crease.
assuming that Maine should
and 100000 horsepower across her
horders, which is far more probably
ihan ever will go, that amount
would be negligible so far as the rest
II the United States is concerned.
The problem of regulating rates be-
tween states therefore will remain
an economic one and will be deter
mined by the laws of supply and
demand. In that case the prices Of
delivered power will always be de-
termined-like the cost of shoes. ap-
ples and potatoes-by the cost Of de
| livery to the consumer. This means
that the farther away a consumer
Is from the power house the more
he will pay since transmission costs
are high part of delivery COSTS"
Col. Farnum insisted that federal
regulation of rates was opposed by
such well informed men as Secre-
nry Of Commerce Hoover, who has
given this particular phase a great
deal Of study in the interests of the
American people.
Branching out further into the
subject of export of power" Col.
Farnum told how certain industries
must seek sites near constant and
dependable low-coSt electricity-in-
dustries whose power bill is a large
part Of the cost of the finished pro-
duct-20 to 40 percent. "These are
the kind of industries" continued
Col Farnum, (which have been 60
Eng to Niagara Falls in the past Is
years; which are now seeking sites
up on the Saguenay River in Quebec,
sites much farther removed from
tner markets than our own sites
mere In Maine. Maine has some
power sites which could be devel-
oped to sell power nearby at prices
which would compare very favorably
with these at Niagara.
Names drawback has been that
developed"
Col. Farnum went on to show that
where big developments had been
MADE and power sold at reasonable
PRICES nearby that industries had
0ult up In the vicinity which had
wWnsumed the entire output. Even
Aiagaras vast output was PRACTICAL
;-o all consumed within a radius Of
loo miles from the Falls,
inls same condition can be ex-
peeted to follow in Maine" asserted
W.. rarnum, IF some financial in
;erests can be induced to make our
a,evelopments. But under existing
s JAWS they cannot be expected to risk
!, money IL they are not allowed
una market for the surplus
tarlns the period in which indus
State. " Jul
a.. instances are being noted every
-" months where Maine has lost
~, iaied to secure a valuable new
~. simply because they could
~. pe assured the cheap power that
w., syaio De possible from our available
we cannot say Maine hasn't the
~ Ssance Tor she has," insisted Col.
s,arnum. "Only a few months ago
r VA, martin insult promised the bust
az ssss ~ men en-. of Portland that from
v sn to $50,00O.OOO would be
m rpsat IN Maine for power Develop
WIZ VA: within the next 10 years pro-
s uuea tney could be assured favor
m mig Jaws that W .uld allow them to
s'Aet their surplus power"
ne argued in closing that a large
coasy OF the people of Maine are
r un.,ns to see that to export the
:, sa'pius power from Maine will be
!, names interest. "Their hesitan-
ZONES from desire to safeguard
interest" stated the speak.
ra Let me say that the power
in.apanles of Maine are just as much
NSlested as the people of Maine
st,seives to safeguard this inter.
y. LOT they are vastly more inter-
MAJ ssu IN seeing Maine power used in
ms. .re IMAM in other states since it
.rIs more growth to themselves.
oor uniess development of our
IN MT is rendered possible within
ma next few months, it will be years
M. perhaps generations before
dS saae can expect a permanent in
A. ssrial growth from her water pow