Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-28

stock. today shows this same stock on
The customers Of this power company
are supposed to pay price for its
electricity sufficient to pay dividends on
this book value. Hearings before the
Federal Power Commission also show
that out Of every $500 per horsepower
year paid by the customers of the
Montana Power Co., $30.56 of this
amount was available to the company
for profits and interest.
Make People Wonder. 4
These amazing revelations have
caused people to wonder why this par
ticular line of business activity should
roll torrents of gold into the laps Of
the promoters of hydro-electric power
developments. Farmers homes are
weighed down by mortgages. Manufac-
turing enterprises are restricting pro-
duction. Labor organizations announce
extraordinary Unemployment. Merchants
stand upon the verge of bankruptcy.
The question naturally arises as to
whether or not 1t is in accordance with
natural economic laws that such enor-
nous profit should be reaped from
power company investments in contrast
to general business conditions.
The power industry deals with a
modern necessity. A machine age de-
mands and must have electrical ener-
gies. Hydro electrical power has dis
placed the old water mills. 1t is sup
planting the steam engines. 1t Is IL
Illuminating our homes and cities. Ac-
cording to the United States Depart
ment of Commerce, 20 per cent Of the
homes of the Nation are now supplied
with this great modern convenience
and necessity. Day by day, week by
week and month by month, electrical
power extends its domain, In the home,
the mine, the transportation system
and the, factory. Only II per cent Of
the potential development Of the cleo
tr;cal power from our flowing streams
has yet been developed. Eighty-three
per cent Is rolling on to waste.
The great public demand for this
endless energy gives to it an unusual
Importance. Heretofore, it has been
generated and distributed, in the main,
In the United States by private mono
polistic.. control. Governments, NUM-
cipaI and State, have attempted to
regulate the price at which it shall be
sold. Is this the proper policy? Shall
it continue? Has it proven salts
factory? Is it successful? If not, what
changes In governmental policy should
be made2
These questions state the water
power problem of today. That the
past policies have proven satisfactory
to the people few will contend. That
regulation has not been completely sue
ceSsful none win deny. The present
exorbitant prices of electric current
and the fabulous profits accruing to
the business make changes OF some
kind absolutely imperative.
r. Sees Undue Burden.
Unfair and unjust profits in any line
of business constitute an undue burden
upon industry as whole. and must
ultimately be paid for by exacting an
unfair tax or tribute from those who
toll. Excessive profits bring about an
unequal distribution Of the fruits of
labor and an undesirable concentra-
ton Of wealth.
Statistics show that around 1000 cor
porations. In the United States earned
huge profits last year, while about $780,
600 corporations made little or no
profits. Monopoly stalks abroad in our
land. Trusts, combines and mergers
exact their unjust toll from machinistS,
farmers. clerks and the toiling millions
Monopolies nix the prices Of the bread
and meat we eat: the clothes we wear: