Evening star., 1933-11-01
]. s. ENCOURAGING
OWNERSHIP POLICY
Power Projects Show Exten-
sive Competition With
Private Operation.
8v the Associated Press.

By the Associated Press.
Encouragement of publicly-owned
power plants. even where they compete
with those privately operated. is being
closely followed as a policy of the Roose-
welt administration.
Through the Public Works Admins
tration every effort is being made 10
stimulate public plants, both those de-
veloped as Federal enterprises and those
as municipal or community projects.
A second governmental agency. the
Tennessee Valley Authority, Is itself
entering a vast power field in develop
ment of the Tennessee River and It's
tributaries.
A third agency, the Federal Power
Commission, is perfecting its organlza-
ton to begin an intensive survey look
ing toward a plan of power development
for the entire country.
The commission also is studying. and
expects to ha We a preliminary report
ready shortly after Congress meets, on
the costs of distributing power.
To Provide Yardstick.
This study is designed to provide a
yardstick. and many in official circles
claim the commissions findings will re-
suit in pressure on some "vate COM
panies to reduce their rates on the
ground their claims of cost of distribu-
ton have been unduly high.
The Public Works Administration is
actively encouraging its State Advisory
Boards to speed up consideration Of ap-
plicationS from municipalities for loans
for public plants.
A report reached Secretary Ickes. pub
lie works administrator, that two ap-
plcations in Alabama for municipal
plants were being delayed by the State
board. Ickes asked a report on the
applications and urged that they be
hurried to Washington.
Allotments have already been made
by the Public Works Administration for
eight public plants. Two of the largest
were s3000,000 for plant at Danville,
Va. and sl,400,000 for one in San Fran
cisco. The latter will be in competition
With privately operated utility.
1ckes, in letter in which he told
Hugh Miller, Missouri public works
engineer. that If project was desirable,
practicable and sound. it should be for
Warded with the State boards approval
Notwithstanding certain interested op-
positions" added that "it could be taken
Tor granted that power interests" would
oppose municipal power projects.
U. S. Would Erect Lines.
The Tennessee Valley Authority also
has indicated that where private lines
are not available for transmission to
communities of cheap power generated
on the Tennessee River, the Authority
will erect its own.
Inc Authority has further reserved to
Itself for the Federal Government the
right to all future power DEVELOPMENT
on the Tennessee or its tributaries.
Secretary 1ckes also made public YES
terday the letter he had written to Mil
ton H. Fies of the Alabama State
Advisory Board. urging speedy action on
the applications of two cities in that
state for funds for municipal plants
The letters were released in connec-
ton with charges attributed to Gov.
Pollard OF Virginia, that power inter-
ests were seeking to prevent public
WORKS loans through an official of the
recovery organization.
Ihe Virginia Governor was repre-
sented as feeling there had been an
undue delay in consideration of an an
plcatlon by Culpeper for funds for
municipal plant.
Ickes requested report from public
WORKS engineers on any delay in that
project and they informed him it had
oeen caused by revision in the plans
for the plant. '
In his letter to Miller the Secretary
said:
My view is that hearings ought to
De granted for the purpose of estab.
fishing whether the municipality itself
desires a project If a project is gen
orally desirable. eng1neeringly prac-
ticable and legally sound. then it ought
to be forwarded with approval to Wash
1ngton, notwithstanding certain inter-
ested opposition, although the existence
OF such opposition should be noted as