Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-18
DANGERS IN POWER
LEGISLATION SEEN
Politicians Watching Posi-
biIitieS of Issue in Future
Campaigns.

BY J. C. RoYLE.
Political forces and utility concerns
are alike watching the possibilities Of
power" as an issue in the next year
and a half. This was disclosed by q
careful survey Of legislators, utility ex-
ecutiveS and engineers today. Most
of them, no matter which side Of the
question they take. admit that the issue
presents almost as many dangers as
q baby playing with matches in q
powder magazine. There Is unQues-
tionably q determination in Legislative
circles to take action which win result
in more strict regulation Of the pro-
duction and distribution Of electric
power, but so rapid have been the de-
velopments within the industry itself,
that the possibility of q back lash Is
thoroughly recognized.
The return to prosperity OF the coun-
try Is dependent to no small degree on
cheap power, but 1t must also be sus-
tanned power. Legislative action to reg
ulate the interconnection Of power lfne9
of various companies and make I'M
possible so-called power crust" util-
ity men say, might serve 70 hanc5S.
industrial production and might bring
protests from insurance companies ard
higher rates for fire, theft, riot and
other forms Of insurance.
Demand for Power.
It Is agreed that there must be pub
lie supervision and regulation Of pro-
ducerS of power and that the consumer
must be protected, but It Is not over
looked that in most instances the
heaviest holders Of utility securities are
the consumers of the power produced
and a regulation too drastic might rouse
serious security holder opposition.
The demand for electric power now
amounts to about 1,675 900 900 kilo-
watt hours q week and it Is growing
steadily. Any blow to utility securities
might not only affect the stocks and
bonds already issued, but hamper
financing for proper expansion Of the
industry, according to the utility men
and bankers.
Federal legislation If unwisely framed
might also alter the value of the nat
ural resources of the country and make
a decided change in construction and
employment, according to electrical en-
gineers Water power has always been
regarded as the ideal method of pro-
DUNG electric current, but technical de-
velopmerlts make 1t uncertain how long
this will last.
1t costs normally about 10 times as
much to build a hydroelectric plant rs
to build steam plant. Equipment
rapidly becomes obsolete and engineers
indicate that further development Of
oil and gas as fuels and Of the use OF
coal for power production at the pit
mouth, coupled with drastic Federal
regulation. might result in the abandon
ment for many years of natural water
power sites and the consequent check
ing Of dam and plant construction.
Ruling Of Commission.
These opinions have been brought
out by the recent ruling Of the Fed
eral Power Commission in the New
River case in Virginia, where the con-
structing company was refused
minor part license free from the &C
counting and valuation provisions OF
the power act. Some Of the States
also have made it plain that they
regard as an invasion Of their rights
attempts to adopt certain forms Of
Federal regulation.
In view of these facts it seems likely,
as Matthew S. Sloan, president Of the
New York Edison Co. says, that there
will come some measure of Federal
regulation Of interstate transmission
Of power, along with revision and
strengthening of State laws. But It
also Is likely, according to expressions
here, that leaders of the political
parties will tend TO, repress the more
radical exponents of the adoption Of
power" as a political issue.
Admit Business Gains.
The wood knockers are pounding a
merry tattoo, but its sound Is far more
cheerful than the business means which
have preceded it. For they are saying
Business is better" before they knock
wood Even the most conservative
business men are superstitious. although
they would deny it vehemently, and it
has been regarded as bad luck to boast
of good business in every age and In
every country unless measures are
taken to avert the hoodoo.
The fact remains, however, that busi-
ness men admit business is better. The
first result Of this has been to lift the
wet blanket from the efforts Of the
statesmen who, many Of them, had let
their customers sell them pessimiSm
instead of selling the latter goods. The
results showed in the retail field when
the volume of postmaster buying for
youths and children home for vacation
assumed most satisfactory proportions
in most sections.
Merchants who had so reduced their
stocks that they were almost selling
from samples, find now that they can
being moderately stocked, especially in
the clothing and dry goods lines.
Production Of steel has not shown
any startling general advance, but some
lines have shown a decided tendency
to perk up. Pipe business has dropped
somewhat and so has call for automo-
bile steel, but the latter seems certain
to pick UP as the month draws to a
close. Structural steel production Is
being held close to immediate delivery
demands.
The automobile trade Is pretty
sharply divided, with some makers
making an excellent record Of sales and
others encountering decided resistance.
As is natural, this situation Is pro-
ducing crops OF rumors Of amalgama-
tons and mergers. None is approach
ing contamination.
The actual volume Of construction in
progress is not sufficient to warrant
any loud rejoicing, but the work Is bet
ter balanced and better adjusted to
needs than 1t has been in
years. The sales Of household utensils
Is picking up in splendid shape. This
applies especially to electrical utensils
and refrigerators. The demand for the
latter is one of the supporting buttreSses
IF the electrical appliance trade. Efforts
are being made to broaden sales outlets
by installing electrical household equip
ment departments in furniture stores.
Despite all the conferences held and
plans formulated to stabilize the oil In
iustry, the latter still is In the throes
of bitter internal dissension, with vari-
ous sections Of the industry and sections
Of the country declaring that some one
mad done wrong by our Nell"
The deficiency Of water supplies IN
some sections has frightened the out
ook for the coal industry. If . drop
n hydro-electric production is forced,
he deficiency must be made up by the
steam plants, with consequent increase
N coal sales.
Metal Prices.