The Waterbury Democrat., 1932-04-19
which I have alluded.

which I have alluded.
 In order to be absolutely certain that the actual possession of the power itself should never be alien ated from the people, insisted that the actual dam or dams and the actual power houses should be con- structed by public authority and always remain in the physical pos- session of that authority.
 Then came the question of how and under what terms this power should be distributed to the actual consuming public. laid down the principle that this task of transmits sion and of distribution should be offered in the first instance to pri- vate capital and private manage ment, but under very definite terms. These terms were intended to carry out the purpose of getting the cleo tricity into the houses of the peo- pie at the lowest reasonable price.
 My very definite plan has been to invite private capital to contract with the state to do this transmit ting and distribution on these en- tirely proper and reasonable terms. But at that point it became neces- sary to provide an alternative in the event that private capital was un- willing to undertake transmission and distribution on terms involving only a reasonable profit to that pri- vate capital.
 I said in my message to the leg islature at that time--"Are the busi- ness men of this state willing to transmit and distribute this latent water power on a fair return on their investment? If they are sat isfied, here is their opportunity. If not, then the state may have to go into the transmission business it. self"
 Holds Mergers Too large
 That is the obvious development of any sound government control over private utilities-that govern ment itself should not engage in the utility business if 1t can find pri- vate initiative and private capital willing to undertake the busin .ss for a reasonable and fair return on the capital which it is necessary and wise to invest in the project and oli the other hand, if govern individuals or corporations willing u uO tIllS, lHCA Ah0St step in and do 1t itself.
 If. during this past generation, that fundamental had been observ- lie service commissions, by our leg islatures, there would be no prob lem of the control of utilities today. It is an unfortunate fact, which is not denied by the leading bankers or the leading utility men them selves, that largely through the building up of a series of great merger and series of great hold ing companies. the capital struc- ture, especially in the case of the electric utilities. has been allowed to expand to an extent far beyond the actual wise and necessary cash investment. .
 It is simple fact that in thou sands of cases throughout the United States electric utility com panies have sought to and in many instances have succeeded in obtain ing. permission to charge rates which will bring an unnecessarily large return. not on the cash in- vestment, but on definite infia- ton of capital.
 I am putting this case very calmly and conservatively. It could be put much more forcibiy, and 1t would be easy to make accusations against many of the great utility companies now operating in this country.
 Electricity Too High, He Says
 discrimination, however. is not particularly useful--it is more use- ful to state the principles than go back for centuries in such way that the people of this country will understand those principles and will understand how, in losing sight of them, We ourselves the victims, the net result of our blindness, of our failure to regulate, and of our fail ure to say that if private capital will not operate for a reasonable profit, government will have to operate itself -- that is in most places of the United States the householder and the farmers and the small business men are paying vastly more for that very necessary part of our modern life-electricity than they have any right to be paying.
 1t is neither radical. nor a vio- lation of any principles of sound business. for me to state in definite terms that public servants with a proper regard for the interests of the people themselves must exert every effort to restore the funda- mentals of public control. An thls applies not only in every state capi- tol but also in the control by the national government over those great sources of power which fall under the jurisdictian of the na- tionai government.
 Tbose who have read the papers these past few days have seen an