The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1929-08-30
The WASHINGTON SCENE

By LAWRENCE TODD. Federated Press

mower plants based on FEDERAL pow
or leases are already evident. Sec
retaries Wilbur and Hyde, consti-
tuting a majority of the Federal
Power Commission, now agree with
Chairman Couzens of the Senate
committee on interstate commerce
that an independent and effective
mower commission must be created
bv congress, armed with authority
to regulate not merely the leasing
of federal power sites but the cap
ital structure of companies secur-
ing leases, and in effect to force
these companies to furnish electric
ity at reasonable rates to the
consumer. Meanwhile the account
ing department of the existing
commission is to be strengthened
and VIM. V. King, its competent
and courageous chief is to De en-
couraged tc 60 on with his JOB Df
letting the water out If the faxed
capitalization of new power pro-
jects.
Solicitor Charles Russell, ap-
pointed since the new administra-
ton took hold, proves an unpleas-
ant surprise for the power lobby
lists. He has failed to play errand
boy for them, and it is now clear
that when his views are applied tC
test cases of recapture valuation
of power companies that are built
on federal leases, some $500,000,
600 to one billion dollars of water
can be drained off from the CAPT
talization on which rates to con
sumers are based. When this il
done-if the Hoover administration
permits it to be done--the cost O.
electricity in American homes AM
stores should be cut to a poin
somewhere near the Ontario rates
Due allowance would still have t
be made, of course, for the fac
that private capital invested i
utilities costs twice as much a
public capital, in annual interes
, charges. That is one of the ele
ments Of extravaganza involved
permitting private ownership of
public utility.
Once the public begins to under
stand how it is being robbed o
Z rates for electricity. the publ
ownership movement will be rein
forced. Already there is discusse
in Washington the revival OF u
, Power Commission bill introduce
by the late Senator Harry Lane
Oregon, democrat, and by Repr,
sentative Jeanette Rankin
: Montana, republican, at the time
the war. This bill provided for
federal regulatory tribunal, and a
SO for a large federal fund whiC
: should be used to build and ope
ate federal power plants. Since Il
E government owns the power sit,
. and can get capital at much low,
= annual interest charge than can
private corporation, it was evidel
e that government power develoI
: ment would result in cheap ele
:, tricity. Among the experts who a
d proved this bill at the time WI
: Sir Adam Beck, founder and hes
E of the Ontario Hydro Electric Con
I mission system of publicly own,
{ power plants.
I Paul Clapp, who was power Sc
E rotary to Secretary of CONNER
a Hoover before the power trust too
q him over, processes to be unab
! to discover the source of the seer
: memorandum which showed
e much anxiety lest the power cor
e panies lack of retirement reserv,
q should become known through Il
I Federal Power Commission. TT
T Joint Committee of National Ut
q ity Associations, to which his N.
n L. A. belongs, still occupies its b
: suite of offices opposite the trea
T ury, and it has issued no denials
I, It was this Joint Committee whic
n was organized to defeat the Walls
resolution for senate investig
ton of the inflated securities al
2 the propaganda of the power trus
< This organization employed forr
f er Senator Lenroot for $4,000,
f argue before the senate 1ntersta
|. commerce committee against Il
! Walsh resolution.
o Dissection of power trust fire.
( zied finance has only begun.