New Britain herald., 1927-02-05
THE lNSULLS AND POWER IN MAINE

The Fernald law in Maine, which has been on the statute books for 20 years, prevents the exportation of electric power from the state. It is one of the most popular laws In Maine-no public official, it Is said. would dare to advocate it's repeal and expect to remain in politics. no legislature would dare to repeal it; no governor would dare to sign it.
 But the Sam Insull superpower interests of Chicago, which have been buying up Maine power com- panies, expect something to happen to the law. The Insult interests are investing so heavily in Maine that no one need think they are doing so with the expectation of selling electric power to the restricted field in the Pine Tree State.
 The Sam Insull interests expect to export Maine power-not necessari- ly to other New England states, but to hook up the high-power tension lines with wires running to other states, to the middle west, even. It was only recently that electrical engineers showed it feasible" to distribute power over lines embrac- ing many states without much loss of energy These developments, CO., incident with the greedy grasping of all available power producing sites by the big power interests are at least significant.
 Recently the Insul interests bought the Central Maine Power company-the largest in Maine-at price of 140 a share. The market value of the property was reported at that time to be only $40 a share. The Insull interests have not yet qualified as being philanthropists and it is safe to conclude would not pay S100 more per share than the market value if they did not think it perfectly safe to gamble. For tax ing purposes the government oblig- ingly placed the value of each share at S25-this after the Insults had paid the $40 per.
 How do the Insulls, therefore, ex- pect to get their money back? Or a safe and sane return on the high price paid for the Central Maine Power company and other Maine properties recently purchased? By exporting power from Maine, and in no other fashion.
 Lawyers have claimed that the Fernald law prohibiting the exporta- tion of power in Maine is unconsti- tutional. There is small likelihood of the Maine supreme court finding the law unconstitutional; the former legislator who had the law drawn up 20 years ago is now chief justice of the Maine supreme court; the other justices, it can be taken for granted, are born to the traditions of the state and think like the rank and file about this question.
 Yet the lawyers say the law in all probability would be found uncon- stitutional by the |. S. Supreme court, and to that tribunal the law of Maine eventually may find it's way.
 Reason for believing the high fed eral court would knock out the Maine law is predicted upon d for mer decision. Some years ago the high court in Washington held that West Virginia could not prohibit the exportation of natural gas from that state. The lawyers naturally see no great difference between the exporta- ton of gas and the exportation of electricity.
 The lnsull interests are perfectly cognizant of the West Virginia de- cision. Perhaps they are also coz nizant of the fact that Pennsylvanja was allowed to assess special tax upon coal exported from that state. ! They might also be aware that if the Maine law as it stands is found unconstitutional the state would be within it's rights in taxing power sent from the state. So far as known Maine politicians have not yet sensed the possibilities of a wealth of tax money that might result should they Icse the right to prohibit the ex- portation of power yet retain the right to tax the electricity exported.
 NLW ENGLAND CITIES
 AND INDUSTRY
 John $. Lawrence, president of the ! x &,= y I'poIa.rJ I,.,,,,..!t