The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-09-20
BY WALKER STONE
Times STAFF Writer


on Possibilities OF the st. Lawrence
waterway.
BY WALKER STONE
Times stan Writer
WASHINGTON, Sept. 2O-It is
a great dream New York cherishes
characterization of the now
sparsely settled st. Lawrence val
ley and identification of the farms
and homes of its citizens.
New York wants to harness the
mighty flow of the st. Lawrence
for the benefit Of its industries and
its people.
1t wants to stop the migration
Of factories to Canada-work and
wealth-producing factories that are
now establishing plants in the prov
inces Of Ontario and Quebec, where
they can buy cheap electricity nc
escape =eta..atory tariffs.
New York wants to bring light
and warmth and labor saving to the
farms and middle class homes-a
boon now enjoyed in Ontario, where
domestic consumers buy electrical
energy from the state-own power
system for IL to cents per kilo-
watt hour.
Many Hurdles Ahead
But New York has many hurdles
to clear before it can make its
dream come true.
The proposed st. Lawrence ship
way, which farmers, manufacturers
and shippers of the Great Lakes
region believe will provide cheaper
freight rates for their products, is to
be paid for by taxpayers.
But the proposed state-owned st
Lawrence hydro-electric plants
which New Workers believe will pro-
vide cheaper electricity, must be self
supporting They must be paid for
by the consumers of electricity.
The nub of the problem in the
New York power program is the
amount the state will have to invest
in its hydro plants. The amount
will be determined in a dicker be-
tween Washington and Albany.
That problem has been settled in
Canada. The Dominion government
has agreed that the province of On
tario shall have the two hydro
electric plants on the Canadian side
for a total cost of $105 100000.
New York Burden Heavier.
For the same development on this
side of the river, Uncle Same is
asking New York to pay $150,000, 900.
On the basis of an investment of
$3.50, 100000, could New York furnish
electrical energy at rate low
enough to halt the migration of in
dustry to Canada, at q rate low
enough to emulate Ontario in the
electrification of farms and homes?
The average capital cost per in
stalled horse power of primary
power" in Ontario is $136, and
i Quebec STA. This means that
American industry would continue
to go to Canada for cheaper power.
And it probably would mean that
farmers and housewives would con-
tinue to perform their chores by
hand.
With a capital cost of 1908 per
horse power, what could state-owned
plants do in the way of meeting
competition of private power COM
panies in New York?
Private power corporations figure
$3.50 as the maximum capital cost
per horse power when contemplate
ing construction of a hydro-electric
plant. Several private hydro plants
are located within the area where
New York state wants to market
its st. Lawrence power.
Cheap Power at Niagara
The cheapest electrical power in
the world is at Niagara Falls, less
than 200 miles distant. The Niagara
Falls Power Company built its plant
on this side of the falls for a cap
ital cost of less than 500 per horse
power.
The competitive position of the
proposed st. Lawrence hydro plants
as against privately-owned steam
generating plants can not be calcu-
lated in terms of capital costs. Capt.
tai costs are very low for steam
plants, and the operating costs
much higher.
New York has some good argu-
ments why it should not pay Uncle
Sans asking price" of $150,000,000,
which figure, state department off,
Gals admit, was based o the theory
that power should pay, as its share
of the St. Lawrence development,
ALI the traffic will bear"
Estimated cost of developing the
international rapids section of the
st. Lawrence for both power and
navigation purposes is $274 742, 900
That figure was based on construc-
ton costs prevailing in 1926.
Construction Costs Drop
Construction costs have declined
approximately 25 per cent, so UNI
der present conditions the estimate
should be revised down to approx
imately $206,O00,000.
The revised estimate would fix the
cost of the entire works for naviga-
ton and power on the American
side of the international rapids Sec
ton at $103,000,000.
In other words, New York is be-
ing asked to give a subsidy of Sat-
100000 to help pay for construction
of the ship canal in other sections.
New York's dream of cheap cleo
IRRIGATION is at the mercy of the
United States senate, which can, if
it so desires, refuse to ratify the st
Lawrence treaty unless the cost OF
the hydro plants is lowered.