The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1934-02-12

of such property is 1851, 1874. This inventory
with the replacement values is included in ana
made a part of the contract and it is therefore
clear that the IVA has accepted these replacement
values reasonable and fair for this property
the replacement of which would involve the eXpen-
diture of $1,664,S34.
The IVA pays exactly $1,000000, or approx
mately 60 per cent of what the iva should have
to put out if it reproduced these properties ITSELF
While the investors in the Alabama Power COM
pany have had to put out over $1,65O,OOO Tor
these properties, and have been entitled to earn
ingS on that basis, the IVA will only have to put
out million dollars and will of course expect
Earnings on only the million dollar investment.
Thus in this one instance the IVA has at single
stroke destroyed over $65OOOO worth of value,
and yet it holds itself out as yardstick by which
to judge the fairness of the rates Of the private
companies which it supplants!
The private companies were, of course, helpless;
shrdl shrdlu shrdl mdlushrdlushrdl hrdlushrdluhrd
they foresaw the destruction of their properties
through unbridled and unregulated competition
from the tax-subsdized government plant which
could spend money without stint for the purpose
of extnguisbine. its competitors Naturally, it was
more to the interest of the companies to salvage
stroved and the companies also being heavy tax
payers did not relish paying still greater taxes for
the purpose of meeting the cost of the competitive
transmission and distribution lines which the IVA
contemplated constructing.
But here is the crux of the Twas apparent mod
Grafton in the size of the territory which is ex-
propriated for experimental purposes. There mas
been so much loose talk in the past ten about
Of hpJSa
connection with Muscle Shoals, that it is decided
shock to learn that the power now available at
Muscle Shoals is only sufficient to supply few
sparsely settled counties
Yet this is what Mr.. Lilienthal says: The size
of the area which the Authority determined 20
acquire was determined in large measure by the
amount of power it now has available; that IS, by
the existing firm power capacity OF the muscle
Shoals plant. Until further power IS available 10
the Authority by the completion of Norris Dam
ESTIMATED to be ready in three years. only those
communities could be served which, IN the aggfe-
gate, would not exceed in their power demands our
capacity to furnish immediate and continuous
electric energy.
''The area coded by this contract, together with
the city of Knoxville, which recently voted to be-
come a wholesale purchaser of Muscle Shoals pow
er. added to the requirements of rural eectrlhca-
ton projects now under way, and demands IN ter
ritory outside the ceded will absorb virtually
all of the power which Muscle Shoals can produce
Allowing safe margin for increased use of cleo
tricity which the Authority's lOw-cost appliance
program is certain to induce, the precise bounda-
ries of the area chosen were determined by the
physical location and sizes of existing transmission
centers.
obviously the Authority could not undertake
to serve all of the 200 communities which were
applicants selection had to be made, so that
the area served would not demand more than the
available power. The selections exclude Tor
the time being many communities applying for
power but drastic exclusion was necessary in the
nature of things. The area selected in our best
judgment is a reasonably compact, concentrated
and balanced area, including rural. village, town
and city operations with a fair industrial load
The areas selected are in proximity to Muscle
Shoals and to the transmission line which will con-
meet Muscle Shoals with the next source of power
namely, Norris DAM"
Aside from Knoxville, which has not yet made
a contract for power from the IVA, the largest
city in the territory appropriated by IVA under
this contract is Florence, Ala with population of
11,729.
1t is amazing to learn that, until the Norris Dam
is constructed, power in large quantities cannot De
supplied from Muscle Shoals, and yet members of
the IVA organization have been talking IVA N
Birmingham, Memphis, Atlanta, and as far
away as Cincinnati with the avowed purpose OF
inducing all at least part of these cities to conf
nit themselves Immediately to IVA power, while
none of these places could have been adequately
served from the present available capacity.-Pub-
lie Service Magazine.