The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1928-03-30


spring into existence. Some 200 new
industries have come into being as the
result of the introduction of electric
power during the last twenty years.
High rates retard industry develop.
ment. We have, therefore, to face the
fact that unless the policies of the
private power companies, in over
capitalizing their accounts, exacting |
high rates of return upon their. IN
vestments and to satisfy these re- !
quirements keeping up rates, are re-
placed by the public ownership poll !
cies of low interest rates, the amortl- |
cation of the capital account and "ser-
vice at COST, the industrial progress
and development of the country must
be restricted and retarded to one-half,
perhaps one-fourth and one-fifth what |
it otherwise would be.
We see these facts illustrated and
demonstrated in certain cities and
sections already. Los Angeles and
Seattle are outstripping all other
western cities in growth, progress and
prosperity. Both have great munici-
pally owned light and power systems
with very low rates. Industries are
moving over into Ontario, Can, from
the United States at a surprising
rate. Electric power is supplied in
249 Ontario cities under public own
ership cat COST" at the lowest rates
on the continent. (For details of the
amazing success of the Ontario Hy-
dro-Electric Power System see "Pub-
lie Ownership by Carl D. Thompson,
Chapter XIID.
Similarly with reference to a~ricul-
tural Development: Aside from the
matter of maintaining a normal dc
: velopment of our industrial market
for agricultural products which low
cost power will insure, there are 9TH
er elements in the power situation in
which the interests of agriculture
would be better served by public than
by private ownership and control. In
the fiji st place, electric power upon
the farm Itself IS now becoming not
onl y a very greatly needed comfort
and convenience, but in some respects
an abs dilute necessity. Under private
company control experience has al
ready proven that for a very large
part OF the agricultural sections of the
country no service at all will be made
available. And in those that are serv-
ed, very high charges are made for
installation, followed by excessively
high rates. Under public ownership
on the other hand, with the princi-
pies mentioned above in operation, the
electricity and electric power becomes
available at very greatly reduced
rates. In Granite Falls, Minnesota, a
cooperative power company, organized
oy the farmers and purchasing cur.
rent Tom a municipal light and powe,
plant, brings current to the farmer,
at a total cost of about 4c per k. W. h
ouch rates are unheard of in any 9th.
eF section except where public owner
ship principles are in application. Fol
further details concerning the posi-
olllty, OF electricity on the farm. we
would refer our readers to Volume 8
NO. B of PUBLIC OWNERSHIP. ,
May, 1926. Public Ownership Lea.
que of America, 127 N. Dearborn st
; Chicago) ~
; There is also the question of tn,
control of freight rates and transpor
; taClon charge. One of our transcon
tmental railroads is already electri
: leo and 1T is only a matter of tim,
until all will be. (For details see q
e SuperpOwer System for the region he
/ tween Boston and Washington bv w
| 5. Murray and others, Professions
$ Paper No. 123, Government Printin,
Office, Washington, d. c.. Low cos
OF power, providing it is owned anC
: controlled by the public, will enabl,
f US to control and keep down transpor
l tatlon rates, thus facilitating an,
D cheapening the transportation of farm
S products to the market.
r In all of these and doubtless otba
ways, the public ownership and con
0 trol OF electric power will insure
S natural and rapid industrial and agri
: cultural progress and prosperity.
r VI. CUSTOMER OWNERSHIP.
: A word remains to be said upon tn
matter of the sale of the private DOW
c er companies securities to the per
eral public. This is one of the recen
}, and perhaps the most clever of al
p the devices adopted by the companie
d as means of strengthening their DC
e sltlon. 1t. accOmplishes many thing
), 70 their advantage. In the first place
o IL helps them to get the capital the
/ need for the extension of a randi
r developing industry. Secondly.
V tends to attach and ally those VIII
purchase the securities to the comns
n MES, giving them a pecuniary interes
q In their success. 1t thus tends to mall
q friends and defenders of the corno,
v ate interests in the communities wher
r. the stock is held. And finallv..
: tends to counterfeit and defeat an
: movement towards the public owner
/ snip and control of electric power an
:, power resources.
le customer ownerships canpaier
1T have therefore become one of the mo,
e. essential parts of the private nowt
l. propaganda There are now "a fSnrox
ID mately 1880 1000 customers of 5Rnhl
le utilities who are shareholders in the
st respective companies st is reportt
IS mat the sale Of securities direct
,r such customers amounted To $296. GOO
r. VOO IN I9z5--that is to saw about on
as fourth OF the totalanew financing do,
m 6y central station companies. Una
m Street and Wall Street by RipIo-r-
h page 343).
is There can be no doubt that the ?
l. suit OF these customer ownership car
&c palgns and the widespread sale
I'd the securities of private power cor
u panles among the people of the val
Mt Gus communities in the United State
to mas very decided tendency to e
ly trench the private power compani
and establish their ownership and co
IL, troll upon the noUel- c;+,,o+;o,, =: 4,