Evening star., 1934-08-05
POWER DAM FIGHT
GREETSPRES|DENT
ON ARRIVAL |NU.S.
Lands in Midst Of Dispute
Over Columbia River
Projects.
POLITICAL FERMENT
AGAIN AT BOIL ING POINT
Distribution Of Industrial Devel-
opment and Current Are Chief
Points Of Contention.
Dispetch to The star.

Special Dispetch to The Star.
PORTLAND, Greg, August
N.A.N.A.).-Some inkling OF the
political and economic ferment being
stirred up by the giant Columbia
River development President Roose-
welt has initiated is given by the storm
OF discussion here, as he landed from
Hawaii.
Portland, and the same undoubted-
" is true of this whole Pacific North
west, is divided into two violently con-
fiicting camps as to what disposal Is
to be made Of the dams which are
being built, at an initial cost Of ap-
proximateiy 100000. 900, at Bonne-
vile and Grand Coulee, on the Colum-
bia River. The one certain thing Is
that the President, II he patises to
listen to local opinion, will be assatled
from both sides. each determined to
smoke out of him definite statement
Of policy.
Dream for Years.
This Columbia River development
has been the dream to which every
politician and Chamber Of Commerce
in the Northwest has paid lip service
for more than SO years. The people
have been told that the opening Of
the river to farmland navigation and
the utilization of its potentially vast
hydro-electric energy was all that was
necessary to make Portland another
New York and Tacoma Pittsburgh,
and to increase the population Of the
Columbia watershed from 100000
to at least 100000.
Hence it was that Mr.. Roosevelt
electrified this whole region when In
a campaign speech at Portland In 1882
he declared: The next great hydro
electric development 10 be undertaken
by the Government must be that on
the Columbia RIVER. The people
whoopeGs with Joy and forthwith gave
him larger margin Of votes than
it ever befcre had given Democratic
candidate.
President Keeps Wsrd.
More than that, the President was
as good as his word. Immediately after
the p. w. A. was established he In
sisted, against the advice Of Secretary
Ickes, that appropriations be author
lied for both the Bonneville and Grand
Coulee projects. The work on both
of them today Is well under way and
the word is that they will be ready
to supply power within three years.
Once the realization Of the projects
was assured, however, folk hereabouts
settled down to more sober second
thought. They began to ask ques-
tions. For example;
How and by whom is the power
to be distributed"
"Is the center of industrial develop
ment to be the communities already
established, or are new and competing
cities to be built up?"
SIS the Government going to bring
in new industries, subsidized by cheap
power, to compete with those indus
tries already establshed?"
Out Of the discussions raised by
these and other queries the matter
finally has boiled down to very con-
crete issue. It Is whether the Gov
ernmept is to create In this region a
duplicate Of the Tennessee Valley
Authority, which will seek to make
the whole community over by q sys-
tenn of Government management, or
whether 1t viii turn the power over,
when developed, to be utilized as may
seem best to the people already resi-
dent here.
Present Conditions.
For an understanding Of the prob
lem it is best, perhaps, TO localize 1t
to Portland and the Bonneville Dam.
The metropolitan area Of Portland now
has power plants, most Of them oper-
ated from hydro-electric developments
ON the smaller Lewis, White Salmon,
Hood, Clackamas and Naches Rivers,
capable Of supplying $4,000 kilowatts
of electric energy. OF this, only 180,-
900 kilowatts are finding a market.
In other words, Portland today has q
surplus Of electric power, above its
needs, Of 10000 kilowatts. Bonne-
vile, in its final analysis, is calculated
to produce 100000 kilowatts, thus of
itself much more than doubling the
existing potential power output and
capable of supplying nearly three
times over the existing demand. True,
the present project calls for the con-
Struction of only two Of 10 power units
ultimately to be built, with an initial
output of 10000 kilowatts, but even
this would be sufficient to glut the
existing power market.
1t is natural that the power COM
panies are asking whether the Govern
ment power is to be thrown into COM
petition with them. and If so on what
basis Of cost.
Question Of Cost.
Secondly, there is the fact, well |
known to every electrical engineer. |
that the initial cost Of production is |
only small part OF the total price |
charged to the power consumer. Thus |
The Portland power companies say
their average return from power sold |
10 the consumers is approximately 2.6 |
cents per kilowatt hour, and of this |
less than three-tenths Of a cent is cost |
of production, the remaining % cents
plus representing the cost of MAIN
aiming transmission lines and other |
lgencies OF distribution.
Bonneville's initial cost OF produc-
ton, once its whole facility is EN-
ployed. is estimated at only l.37 mills
per kilowatt hour. about half the cost
Of existing plants, but this does not
take account of the 2.3 cents-the 81
per cent of total power cost--which
goes for distribution rather than pro-
duction.
If Bonneville power Is to be sold to
the consumers at a price materially