Evening star., 1933-12-20
j. s. SEEKS LARGER
ELECTRICITY USE
Million Dollar Agency Will
Help Tennessee Valley
Utilize Power.
BY the Associated Press.

BY the Associated Press.
The Government Is creating million
dollar corporation to help persons in the
Tennessee Valley, and possibly the rest
of the country later, make use Of more,
new and cheaper labor Tightening cleo
trical devices.
BY presidential proclamation, 81, ,000,-
900 of the $4,000, 900 900 public works
fund has been set aside as initial capital
for the Electric Home and Farm Author
ity. This corporation will be organized
under the laws Of Delaware with the
Federal Government voting all Of the
10000 shares of stock.
Its objectives, said David e. Iilienthal.
thority who will serve the new corpora
ton in like capacity, will be:
To help finance the consumer who
wants to buy standard electric equip
ment; to obtain reductions in power
rates; to work for cheaper electrical de-
There is no intentia1, and t intapfers With
the business OF electric appliance dealers,
Lilienthal said, but rather to bring low
priced appliances" and stimulate the
dealers general business"
Extension of Plan Possible.
1t was stated at the White House by
Stephen T. Early, q secretary TO the
President, that II the proposal proved
successful in the Tennessee Valley. it
would be placed on a national basis
through the attraction and cooperation
OF private capital
The Tennessee Valley Authority, in
cluding Arthur E. Morgan, chairman;
Harcourt A. Morgan and Lilienthal,
compose the board of directors of the
Electric Home and Farm Authority.
I.ilienthal Is now negotiating with
utilities In an effort TO gain lower rates
for consumers
He issued the following statement last
night in explanation of the purposes of
the new Government corporation:
THE objective of this program is
wider and greatly increased use of elec-
tricity in the home and on the farms
Valley. In order to carry out this pro-
gram. there must be board scale dis
tribution Of very low cost, standard
quality, electric using appliances and
concurrently a revision downward of
electric rates. The new agency is based
on cooperative program in which the
Federal Government. the electric utili-
ties, both publicly and privately owned;
the electric manufacturering industry
and dealers will participate
Through the Electric Home and
Farm Authority it is proposed that the
Federal Government participate in this
program in the following ways:
To Aid in Financing.
"1. BY assisting in financing to the
consumer the purchasing of standard
electric equipment at very low prices.
90. BY securing reductions in electric
rates, by agreement with the utilities
publicly and privately owned. so as to
make use Of this equipment feasible for
the average householders and farmers
IS. BY engaging in educational work
Of electric equipment and to make it
better adapted to the needs of the
average home and farm.
Electric appliances are now sold by
regular dealers for the manufacturers,
by hardware and department stores
and by electric utilities. The program
does not contemplate a disruption of
these outlets Each dealer will, of
course, continue to exhibit and sell any
lines Of electric appliances he desires,
but he will also have an opportunity to
sell the low-priced appliances which
this program Is expected to create. The
pIUSI dIIl Will SIiluuAdtC lAAc OCoicA .
general business"
Construction Begun.
Creation of the appliances corpora
ton followed shortly a statement by
Lilienthal at a National Press Club
luncheon that the Authority had begun
actual construction in his program for
rural electriflcation In the Tennessee
basin.
Work already has started, he said,
with civil works labor under T. v. A.
administration, on setting poles and
stringing wires in Pontococ, Lee and
Alcorn Counties in Northeast Mississippi
and construction will get under way
in Lauderdale and Colbert Counties, in
Alabama, next week.
Lilienthal said the rural electrifica-
ton would be carried on regardless OF
whether q section of the valley was in
reach of T. v. A. transmission lines.
He said he expected this work to spread
| throughout the valley until the region
set a high mark for availability of
farm home and industry power. -.
The power director said he would
establish the principal office for ad-
ministration of the electrical program
| of the Authority in Chattanooga, Tenn.
| ,.>-- 49,. aA-RPna