The Daily Alaska empire., 1931-01-26
HOWELL COMMITTEE ON UTILITIES.

During the construction period of the Alaska Railroad it erected power plants at Nenana center of construction the interior end of the line, and at Anchorage. These were primarily in- tended to serve the railroad project and power for light and industry sold and distributed to firms and individuals not connected with it. Since both were Government townsites and for many years controlled entirely by Alaska Engineering Commis- sion officials the procedure was proper
 Later, when both towns were incorporated the power business was turned to private corpora tions At Nenana the railroad leased its plant to local company It found that, due to decline in railroad activities which reduced industry and population materially, that it could not operate at a profit. The company surrendered it's lease and the railroad resumed operation of the plant supplying it's own requirements first and selling to private consumers from it's surplus.
 At Anchorage a stock company was formed and a hydro-electric development at Eklutna financed and completed One of the most effective induce ments offered in financing was an assurance that the railroad would turn the public service business at Anchorage to the private concern, and would also purchase power for its own Anchorage needs It appears that the new company could sell power cheaper to both private consumers and the railroad than the latter could manufacture it at it's steam plant. But the revenue which accrued to the railroad from it's power plant, naturally, was lost
 Senator Howes committee Investigating the railroad last summer went into this phase of it's operation Its report adversely critical to the roads policy in both instances It condemned the management for taking back the Nenana plant because it could not be operated at a profit And it condemned it more severely for relnqushing the Anchorage plant because it was capable of being operated at a profit It refers to the latter us 8 naive" transaction which may have ugly aspect"
 The management said the Commission report, felt that the Government had no authority to dis tribute electricity except matter of necessity. The necessity in this after 13 years service by the railroad ended when someone else was ready to supply Anchorage Therefore, the railroad was its profitable activity and such action would permanently add to the annual deficits and junk otherwise valuable assets"
 If there is anything unsound in this theory of the Governments relation to business, it has ecaped notice. Surely it will not be contended that any Government agency should engage in ! competitive business with local business firms in any line of endeavor. The question of profit, which seems to have become obsession with Senator Howell should not be permitted to be the decisive or determining factor. The railroad mana cement may or may not have obtained a fair contract from the Anchorage public utility company for of its facilities, for electricity for its requirements. But it certainly would not have been any more justified in continuing in that business in Anchor age, when privately owned and operated facilities available, than it would be to construct its own power plant at Fairbanks and compete with the private company there