The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-21
Trends
New York Threatens
Own Electric
Plant.
. BY VINCENT :. LYONS =
Times Financial Editot

"ONSlDERABLE d0O mas Deeu
~ made recently Of the contro-
versy now being waged between New
York City and the public utility in
terests Of that community. The
sudden hare-up developed when it
vas alleged by some one in the
administration that the city was
being overcharged for the use Of
utility services in its public build
ings.
The threat vas then made that
unless lower rates followed the city
would initiate steps 10 construct
its own public utility plant. Mayor
La Gusrdia made a flying trip 70
Washington and discussed the sit
uation with President Roosevelt
and Harold Ickes, Public Works
Administrator, the nations strong
est advocate Of municipal public
utility ownership
OF course one does not know
Just what is IN the mind of the
New York City administration at
this time Il can not accurately be
guessed whether Mayor La Guardia
Is simply letting of steam to wean
rate reductions from the public
utility companies which supply the
community with service or whether
ne Is really serious and means to
20 ahead with his plans.
THE controversy, like all others,
L has many elements which
must be taken into consideration,
Some Of them, especially those
which might be offered IN opposi-
ton to municipal ownership, are
intangibles. The tangible items. or
at least the majority of them, seem
to point to the attractiveness Of
program 10 produce and sell is
own electricity.
New York City is the largest city
in the country. If municipal owner
ship came to that city it might
carry sufficient influence in other
sections of the country. so that
other communities would Jump on
the band-wagon and launch SINH
lar programs. Advocates of city
owned utility plants unquestion-
ably would like to see the Nations
first city in the column Of COM
munities independent of private
public utilities.
It must be remembered, too, that
New York is not too far removed
from Niagara Falls to permit that
project to be the source of prOduc-
ton. Niagara Falls has an album
dance of potential power which,
when harneSsed, could fulfill the
Citvs needs with ease. Then, too,
If the program would bring about
lower rates as is naturally expect
cd. It would be another feather in
the cap of the fusion administra-
ton. which is now in control of the
city.
THE biggest if in the conflict
L is whether the municipal plant
can be operated cheaper than can
the present private companies. The
whole structure of costs involved
in this operation will be gone over
IN a study to be made shortly by
engineers. Mayor La Guardia has
maintained that 40 per cent, or
s5.600,O00 can be Topped off the
city's s14OOO.OOO annual power and
light bill.
In the event that New York
City decides to proceed with its
venture. the funds would have to
be supplied by the Public Works
Administration. Ostensibly, little
difficulty would be encountered
there as Mr.. La Guardia said after
comforting with Mr.. ICkes that lie
had reasonable assurance that the
loan would be granted.
With public utilities and the Gov
eminent currently engaged in a
brawl of a national scope, this lat
est incident involving New York
CITY is indeed interesting. If the
city goes ahead with its threat it
is bound to have some effect on the
national situation. Consequently,
observers of the economic scene
are watching the episode with keen
attention.