Evening star., 1934-12-20
NEW YORK POWER
SALE THREATENED
IN UTILITIES FIGHT
More Municipal Enterprises
in Other Parts of State
Also Loom.
LA GUARDIA REMAINS
FOR FURTHER TALKS
Compromise to Permit Private
Firms to Continue Operation
Is Hoped For.
BY the Associated Press.

BY the Associated Press.
The fight which finds President
Roosevelt and Mayor Fiorello H. La
Guardia waving "yardstick" at
power leaders took on broader signifi-
canoe today when it was learned their
threat implies greater possibilities
than just a street lighting plant in
Manhattan built with Federal funds.
Though everything is tentative
administration officials declare it
hinges on proof that municipal plants
can operate cheaper than private
ones-the smiling New York mayor
dropped two definite hints:
l. That New York City might 60
into the power business to sell elec-
tricity direct to consumers.
More Enterprises Seen.
2 That many, many more munich
pal enterprises" in other parts Of New
York State may be created II power
interests continue to demand uncon-
scionable rates"
The short, vehement "fusionist" who
beat Tammany remained here today
to confer with Secretary Morgenthau,
Relief Administrator Hopkins and
others. After talking yesterday with
President Roosevelt and Secretary
Ickes, he was exuberant over the out
look in his fight with the power con-
Germs. Observers here, however, be-
lieved the door was not closed to a
compromise in which private concerns
might continue to supply the city.
The question how much money
would be loaned to New York-if the
street lighting plant Is approved-was
still undecided. Secretary Ickes. the
public works administrator, said $l5,-
900, 900 had been mentioned as the
cost.
THAT" said La Guardia graphically,
lis only the angostura in the cocktail. -
Questioned on Cost.
Questioned further as to how much
the public power system would in
Volve, La Guardla SAID.
IF the utilities behave like law
abiding citizens. we will follow one
plan. Otherwise"
Asked about that otherwise" he
explained for the first lime that the
city, if it considered the step neces-
sary, might aim at selling electricity
direct to homes.
OF the SIS 1000 900 mentioned, So
500 900 would be to furnish power and
lights to Federal buildings in New
York, the rest for city purposes.
La Guardia said he had reason
able assurances" from Ickes that a
loan to New York would be approved
Ickes said the application would have
to be made in regular form, with
proper security.
Securities Sell of.
That's an awful lot of money just
now" he added.
AS the Roosevelt-La Guardia cam
paign for cheaper rates took the form
of this threat to the very heart OF
the private power industry yesterday
utility securities sold of.
La Guard1a took the view that
perhaps 40 per cent could be cut of
the city's S14,000,000 annual bill fol-
power and light by municipal plant
There were also definite indica-
tions that any such plant, If built
would be a steam plant. One official
who preferred not to be quoted said
the Presidents Power Policy Commit
tee had decided that any hydro.
electric development would be toe
far away from the city to be prac-
ticable
President Roosevelt yesterday indi-
Gated his belief that the problem oi
municipal VS.. private operation was
one Of arithmetic-a question which
could be operated more cheaply.. He
said he would authorize Government
funds for public plants in New York
or other cities if given proof thai
they were cheaper.