Evening star., 1934-12-11

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an urgent, practical undertaking. It
will be Of the utmost value not only
to State and Federal governments,
but to consumers, industrial, domestic
and rural aliket to utility ofdcials and
investors and to all concerned with
power generation and the wider use
Of electric current. This survey should
point the way to q more economic and
co-ordinated power development and
distribution.
No national power plan can be con-
sidered complete without the inclusion
Of definite program for rural elec-
tritication. America Is backward In
this respect. for OF our more than
e.000,o 900 farms, only some 100000
have electric service. This offers .
huge market for power and . most
inviting field Of ultimately profitable
business Farmers are entitled to
the social and economic benefits Of
cheap electric power, and Federal and
State onicials are actively considering
means by which electric service may
be made available to our vast farm
ing areas.
Rates concern consumers more di-
rectly than any other feature of elec-
trio service, yet rate making has never
been standardized and Is at present
highly unscientific. Each company de-
vises its own rate structure, making a
mystifying variety which confuses
experts, to say nothing Of laymen.
BY the Norris Rankin joint reso-
luton Of Congress, approved April 4,
1884, the Federal Power Commission
was authorized to investigate and
compile the rates charged for electric
energy and its service to residential,
rural, commercial and industrial con-
sumers throughout the United States
by private and municipal corporations
and to report rates, together with an
analysis thereof. to the Congress at
the earliest practicable date"
Survey Being Made.
Pursuant to this resolution. the
commission is now conducting the first
Nationwide electric rate survey ever
undertaken in this country. This is a
fact finding, not rate-fiXing, survey.
Our mission is to assemble and analyZe
all electric rates in force in America
and to present this data so as to per-
NIT intelligent rate comparisons be-
tween communities, as well as be-
tween various classes Of consumers.
It is believed that this rate survey
may afford the basis for and prompt
the correction of many rate inequali-
ties and contribute toward standardiZa-
ton of rates.
Another task assigned to the Fed
eral Power Commission by Senate
resolution introduced by Senator Co.'S
tigan and by executive order is the
investigation of the cost of distribut-
ing electricity to consumers. Distri-
button costs, not generation, figure
most largely In charges to users Of
electricity, yet there Is no compre-
hensive and authentic information as
to what distribution does actually cost.
When this study is completed. we will
know the true relationship of these
costs to rates, and also know Of pos
sible economies in distribution.
On behalf of the commission,
desire to express our appreciation of
the cooperation of the industry, both
municipal and privately owned. in
furnishing data for these surveys.
While planning is essential to the
achievement of economies in and a
wider distribution Of electricity, there
is need for correcting certain unjusti-
fable policies and practices Of the in
dustry which have put unnecessary
expense burdens on consumers. have
time to speak of only one Of these
problems tonight.
Veritable Pandora's Box.
The power holding company has
often been a veritable Pandora's box
from which have sprung and spread
over the operating companies many
grievous Ills and iniquities. The hold
ing company is not public utility
and Is therefore not subject to direct
regulation. Through this ingenious
legal device we find control, of regu-
lated public utilities by private un-
regulated holding company corpora
tions. Such absentee-control and
management of the operating COM
panies is both anti-social and un-
economic. These holding company
dynasties control and manage hun
dreds Of operating companies scattered
throughout many States, and take
exorbitant profits from the operating
companies through intercorporate
contracts and excessive fees for man
agement and other services. The
holding company dictates the terms
and the price to be paid to it by its