Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-04-03
REGULATION OF ELECTRICAL
PUBLIC UTILITIES

4 E
we should abandon our present
method of regulating electrical pub
lie utilities through local State au-
thorities and substitute a system of
Federal centralized control. Regu-
lation together with progress and
high skill in the industry Is pro-
viding electricity at prewar prices
The total distribution of interest and
dividends by the electrical companies
as whole never has exceeded per
cent upon the values of all the prop
erty for rate making purposes The
industry has expanded to meet pub
lie demand by fourfold in ten years.
Before We abandon the system OF
State control let us be sure that we
have something better to take its
place
The above is from an article con-
the Savings Bank Journal. It is In
line with his previous declarations
on this subject. His position ap-
pesIs to us as eminently sensible,
but while he is taking it England
socializes electrical development in
that country under centralized con-
troll. though conditions there are
manifestly not comparable with ours.
Mr.. Hoover has consistently sup
ported the attitude OF President
/ Coolidge in opposition to the strong
trend OF Capitalization In this coun-
+ try but that trend Is yet powerful,
aggressive, and taking every ad-
vantage of indifference in the States
to take over to itself wherever pos
sible every opportunity to control.
A court decision Is expected in
October, which 1t is thought may de-
termine that a State may not pre-
power outside the State limits. If
the Federal Government may so
counternand the order of the State
1t surely Is In a fair way to regulate
that interstate transmission of cleo
tricity. Already IL regulates the
+ navigabIe streams on which this
power may be developed. clear to the
source. 1t is tntrenched for extend
ing its regulatory powers.
= 1t should by this time be clear to
us that We do not wish our State to
have no more of control over cleo
trical power than it now has over
railroads and freiShts and telephones
and tolls. 1t is said the electrical
interstate lines would not be by law
classed with the rail and telephone
lines, but there is nothing to show
that such control would not be
brought about and there is no oues-
tion about the disposition of those
favoring centralized control to bring
: 1t about, or about the wish of the
populous centers to have 1T. Has
Maine any power to prevent? What
are her rights? How may they be
determined? Who Is TO do this?
There is talk favoring a plank in
the Republican platform advocating
the repeal of the Fernald law. Pos
sibIy the courts will decide between
now and the meeting Of the next
Legislature whether this law is
valid. But IL 1t is valid do we wish
to change it? Will the convention
know enough about what the change
would be TO warrant it in making a
decision to change. OF course condi-
tions have changed somewhat In the
seventeen years since that law was
passed. For one thing we have not
profited. from it to the extent antict-
pated. 1t has become clear that the
state will not itself enter on hydro
electrical development. The con-
clusion from these changes seems to
be that a better way may be found
for protecting Names interests in
her electrical possibilities, but the
convention Is not in a position to
determine what that way Is.
1t may properly recognize the de-
STABILITY of some modification of
that law and then the delegates
should 60 home and select for max
ing the States laws representatives,
in whom confidence may be reposed,
those sound OF judgment. free to
exercise that judgment. and resolv-
ed to protect the States interests,
regardless of any pressure which
may be brought to bear upon them;
representatives such as would be i'm
pressed by this conclusion OF Mr..
Hoover. when asked what might be
done IL States did not properly
regulate its power producing units:
Federal encroachment for this rea-
son 10 the ultimate extinction OF
local government"