Evening star., 1934-05-16
LOWER ELECTRIC
RATES HELD AIM
McNinCh Discusses Power
Commission Survey in
Radio Forum.

A general lowering of the charges
for electricity is the aim of the Nation
wide study of rates on which the Fed
eral Power Commission is embarking,
Frank r. McNinch, commission chair
man, disclosed last night in a speech
In the National Radio Forum.
In the address, carried over coast
forecast chain of the National Broad
casting Co, under the sponsorship Of
The Evening Star, Mr.. McNinch out
lined also other activities of the COM
mission, whose operations have been
greatly expanded under the Roosevelt
administration.
The speaker argued that scaling
down of rates means increased con-
sumption, and pointed to the situation
locally in support of his contention.
Balance Held Objective.
"This objective of generally lowered
one, but only the balancing Of the
scales for every one" he said.
Mr. McNinch made it clear that
municipality owned plants as well as
those under private operation are
coming within the scope of the study,
pointing out that the former in many
instances, have maintained high rates
in order to secure large revenues in
lieu of taxes"
He expressed the opinion that "a
thorough house cleaning in those por-
tionS of the industry which need it"
will be prerequisite to the reforms it
is hoped TO bring about In this con-
nection he emphasized that regulation
of holding companies is one goal to be
attained.
The survey Of all water-power re-
sources, looking to a long-range de-
velopment plan, and another study,
that of cost of electrical distribution
which likewise are being made by the
commission, also were explained by
Chairman McNinch.
Text of Address.
The text of Chairman McNinch's
speech follows:
I am glad of the opportunity to
talk to you on the subject of electric
light and power, and want at the out
set to express my appreciation of the
courtesy Of the Radio Forum in giving
me this privilege.
Electricity has become so essential
to modern society that ali are vitally
concerned in the problem of making
1t available at low cost for domestic
agricultural, commercial and indus
trial purposes. Any plan to make
electricity more universally available
and to reduce the cost to the con-
sumer is of very great Importance to
the whole Nation.
The generation and distribution Of
electricity is a highly technical art
and is too often spoken of in technical
and engineering terms, which tend to
confuse rather than to inform the
average man. Tonight, l will put
aside the language of the experts and
discuss the subject in plain, every
day terms, which, hope, may give
you practical understanding of some
of the problems which directly affect
your interests.
The Commissions Work.
I realize that the Federal Power
Commission is such relatively new
national agency that the scope of it's
Jurisdiction and the field of its activi-
ties are not well known, and I shall
therefore make a brief statement as
to the organization and work of the
commission.
The Federal water power act, which
created the Federal Power Commits
sion, was enacted in 1920 during the
administration of Woodrow Wilson
Prior thereto, President Theodore
Roosevelt had in other public messages,
pointed out the necessity for the con-
servation of the Nations water power
resources and the development there
of under such legal restrictions and
provisions as would protect the
peoples rights therein. Then followed
years of discussion in Congress of leg
islation designed to prevent private
interests from exploiting for pur-
poses of private greed and profit this
great national resource. Through
successive sessions, members of Con-
gress, Democrats and Republicans
alike, fought for the enactment of
such a statute as would protect the
peoples interest, while a power lobby
battled against effective legislation.
Finally under the leadership of Pres
ident Wilson, came victory for the
people through the enactment of the
Federal water power act and the crea-
tion of the Federal Power Commission
The first commission was composed
of three cabinet members; the Sec
retary of War; Secretary of Agricul-
ture and the Secretary of Interior.
For 10 years, the commission sought
to administer the act, but it was
realized that the law could not be
adequately administered except by a
commission which was free to devote
its whole time to this work, and in
1880, upon the recommendation of
President Hoover, Congress amended
the act and provided a whole time
independent commission composed of
five members.
Brief Summary.
Time does not admit of state
ment in detail of the Jurisdiction and
work of the commission, but it may be
summarized briefly as follows:
The commission Is vested with the
Jurisdiction of granting or denying
preliminary permits and licenses for
the construction of hydro electric
projects on all navigable waters in
the United States and on the head
waters thereof, where the construction
of a dam or power plant would affect
navigation on the stream below, and
also on Federally owned or controlled
lands.
A further duty is to audit, ascer-
tain and determine the actual legiti-
mate cost of all power projects built
under license granted by the commits
sion. This is known as the determin-
alton of the capital investment in such
power plant. This is an important
function because the statute further
provides that at the expiration OF the
license the Federal Government shall
have the right to recapture or take
over any or all of these licensed power
plants at the actual legitimate cost OF
money investment therein. Such re-
captured plants may thereafter be
operated either by the Federal Gov
arpp,apt or anv State district Oi