Montana labor news., 1932-10-13
Franklin Roosevelt's
P O w e Record
Continued from page one)

Il
cially to domestic, farm and small
industrial consumers.
Here is a definite ~espousal of the
prudent-investment theory of valua-
ton, which excludes stock watering.
The Governor also holds that fran
chise values and water rights should
not be capitalized by private con-
Germs. In his st. Paul speech last
April he went further and demand
ed a federal law to control security
issues of interstate holding COM
panies, now outside state jurisdic-
tons and wholly unregulated.
After a years delay the legisla-
ture created a development commits
sion for the st. Lawrence project.
Its majority report recommended a
/ state generating plant with private
transmission and distribution, but
not the alternative right of state
transmission; also a State Power Au-
thority of five members to built the
plant. But construction could not
begin until it has first contracted
for the sale of power sufficient to
finance bond issues and other ex-
penses. A bill was passed embody-
ing these provisions.
The Governor could either veto
this bill, thus ensuring further de-
lay, or sign it and trust to the fu-
ture. He signed. Expected to con-
tinue the Development Commission
in control of the project, he refused
because he was not satisfied with its
attitude, and appointed five tested
liberals whose ability and records
of trustworthiness in the public in
terest were beyond question.
This Power Authority could not ne
gotiate or even adequately discuss
sale of power with private executives
until the production cost of current
be determined. One type of dam
construction would ensure a bus-bar
cost of around SO per horsepower
year. Another type would raise the
cost to SIG. A prime factor also
was the amount New York State
would have to pay as its share of
the cost of the Great Lakes-St. Law
renee Waterway. All this depended
upon a treaty between the United
States and Canada. Effort to ascer-
tain the terms of the treaty under
negotiation and to permit New York
proper representation were u%navail-
ing, despite repeated attempts by
Governor Roosevelt and the Power
Authority. The Presidents rebuff
of the Governor just prior to the
signing of the treaty is of recent his
tory. Secrecy aroused suspicion and
the senate ordered an investigation.
Necessarily the Power Authority has
been held up by this treaty business
for over a year. However, other
valuable work has been done.
On March 25, 1929, Roosevelt in a
special message demanded and OBJ
tanned from the legislature a mon
partisan commission to make a
thorough Investigation of the whole
subject of the public-utility field"
1t was to ascertain how regulation
was working out. The legislature
appointed six Of its own members
and permitted Roosevelt to appoint
three. Even the legislators found
conditions far from satisfactory. The
minority report Of the Roosevelt APP
pointees is an arsenal of facts show
ing how regulation has been
thwarted. New laws strengthening
regulation have resulted. In the
midst of the inquiry Chairman Prem
dergast, for ten years head of the
state public-service commission, re-
signed. Roosevelt appointed Milo R.
Maltbie, a publicly minded consult
ing engineer. Since then the COM
mission has functioned more as a
public agency than as an adjunct of
the utilities combine.
Roosevelt, however, has repeatedly
warned the people not to expect too
much from regulatory commissions
both because of the interference of
utilities in politics and because such
commissions are frequently rendered
powerless by federal judges interior
ing in state affairs, a practice the
Governor condemns. He holds the
competitive force of public plants to
be the most effective regulator of
private rates. To that end he urged
last March a bill giving absolute
municipal home rule in utility mat
tiers, with power to build or buy and
operate public plants upon popular
vote. No Certificate of necessity"
from the state commission is to be
necessary to take such action and
no regulation is allowed thereafter.
He also urged a bill for the right of
municipalities and farm communities