Evening star., 1934-11-13
CONGRESS FACING
BATTLE ON POWER
Administration Is Massing
Resources for Cheaper
Electric Rates.
By the Associated Press.

By the Associated Press.
The Roosevelt administration is
seeking to mass the resources of Gov
ernment behind a power offensive
that may lead to an historic fight be-
fore Congress.
On the one side are those who de-
mand cheaper electric power and
more drastic regulation; on the other
are those who warn against Govern
ment in business and declare that at
tacks on power companies are a dam
ger to private industry and investors
high and low
While the White House made pub
lie a survey contending electricity
users in Northeastern States could
save s194,0o0,0 900 in their power bill,
one phase of the opposition to the
administration hydroelectric pro-
gram cropped out in Cincinnati.
The "vision Asinine."
Calling the Tennessee Valley Au-
thority 'the vision asinine," Appa-
lachian Goals, Inc, began, what it de-
scribed as a Nationwide campaign
of opposition to the hydro program.
The organization, marketing agency
for nearly 80 per cent of the South
ern bituminous mine field, said coal
furnishes cheaper electric power than
water. 1t hit what it termed "T. v.
AS excursion into the power busi-
ness"
when T. v. A." it said, finds it
self with a huge investment in power
facilities and an enormous supply OF
electric power, it must for its own
salvation develop and organize
power market not now existent.
THAT means the promotion OF
Government subsidized industries in
direct competition with existing pri-
vate industries. This program has
already started"
Report Summary Issued.
A summary Of bulky report made
after three-year survey in connec-
ton with the projected power devel-
opment of the st. Lawrence by the
New York State Power Authority was
1SSuC0 NY tllC Willie 11OuSC ldoJ 1ll61lI.
The survey was made at the order of
President Roosevelt when he was
Governor of the Empire State.
The White House summary said the
report, made under the Craftsmanship
of Frank P. Walsh, established
yardstick whereby consumers in New
York, Pennsylvania, New Jersey and
New England would be saved $194,-
000, 900 year or 81 per cent.
As for New York State proper, the
summary said:
THE cost of distributing electricity
to homes and farms warrants rate
schedule which would charge not
more than 3la cents a kilowatt hour
for use of so kilowatt hours a
month instead of the average of 6
cents which these customers are now
paying"
The report estimated that by ap-
plying the yardstick New York State s
total electricity bill, for consumers
large and small, would be cut $685.
0O0, 900 year or % per cent.
Washington was pictured in the re-
port as one of the cities served by pri-
vate corporations at reasonable rates
which do not jeopardize capital struc-
lures.
The report showed the Washington
rate is 39 cents a kilowatt hour for
the first so kilowatts, or mills higher
than the anticipated low rate which
would accrue from the St. Lawrence
project.
OF the % other cities in six States
which we're used for arriving at the
conclusions, the report cited the fol-
lowing rates: st. Louis, ATS for the
first 80 kilowatts; Portland, Ore, sos
for the first 80 kilowatts; Buffalo, S
cents for the first so kilowatts, and
Montreal, .594 for the first 10 kilo-
watts.
These rates, the report explained,
are much lower than the average pre-
vailing in the United Safes, and show
that the cost of private operation
does not preclude reductions approach
ing those suggested in the distribution
cost SllrVey.