Evening star., 1934-12-11
CRITICS Of POWER
PROGRAM DEF|ED
McNinch Promises Vigorous
Fight on HindranCes to
Development.

Private power interests were prom
ised a vigorous fight against any steps
they may take in an effort to destroy
or obstruct the Roosevelt administra-
tion's new power development pro-
gram.
The promise was made last night
by Frank r. McNinch, chairman of
the Federal Power Commission. in an
address on THE New Deal in Power" "
delivered in the National Radio Forum.
The forum, arranged by The Washing
ton Star, was broadcast over coast
forecast network of the National
Broadcasting Co.
Going back year and half ago,
Chairman McNinch said 'critics de-
clared the plan visionary, impractical
and certain to fall
Fears Been of Success.
"For the past year their fears have
been not of failure but Of the success
OF the administrations power plans.
Therefore, a Nationwide barrage of
propaganda has been laid down to
mislead and frighten the people. But
the attack not only failed, but has
solidified the support of the people,
for they knew that behind the smoke
screen of poor widows and orphans
stood their fearful and valiant defend
ers, those intrenched financiers who
have been reaping their millions where
they have not sown."
Pointing to the contemplated legal
battle to be instituted by the Edison
Electric Institute, Chairman McNinch
said:
THE wisdom of thus challenging
the combined judgment of the Con-
gress and the Chief Executive, directed
toward economic recovery and the per-
manent veal Of our citizenship may
we'll be the subject of calm and pa
triotic consideration before decision.
Recognizing the great Importance
to our national welfare of a soundly
based prosperity for the power indus
try, indulge the hope that plans for
obstruction may give way to measures
of cooperation, that attack may be
abandoned for support of the Govern
ment's power program. But if the at
tack is made, let it be understood that
there will be no retreat by Federal
forces"
Propa ganda Sums Cited.
Answering investors who have writ
ten the Power Commission regarding
their stock losses, McNlnch asserted
that the power industry spent between
s2S,0O0 900 and $50, 100000 for propa-
ganda that could have gone for divi-
dends to investors.
He also asserted that the power
utilities investments on December 81,
1893, represented $4,000 100000, and
that the consumers investments in
utilization equipment totaled s13,200,-
100000
Because of the substantial increase
in domestic consumption during the
year 1884 it is safe to assume that
the consumers investment Is now ap-
proximately S14 1000, 100000. And every
dollar of this consumer investment
represents actual money paid for this
equipment. No such assumption may
be safely made as to the claimed in
vestment of the utility companies, as
We do not know what part represents
money and how much represents
water"
Text Of Address.
The text Of Chairman McNinch';
address follows:
Through the courtesy of the Ma
tional Radio Forum I talked to you
last May about the Federal Power
Commission and its functions, and
am grateful to Mr. Oliver Owen Kuhn,
managing editor of The washington
Star, for the privilege that is mine
tonight of speaking to you about the
New Deal in power.
May also express the deep appreci-
alton of the Federal Power Commits
sion of the friendly interest in and
support of our work, which was SO
freely manifested in many letters re-
ceived following my earlier radio talk
Since the bold. constructive and
epoch-making declaration of his power
policy by Mr.. Roosevelt at Portland,
Greg. in September. 1882. America
has become aggressively power-nnnded
In that speech Mr.. Roosevelt said
II state to you categorically that as
a broad general rule the development
of utilities should remain, with GER
tain exceptions, a function for private
initiative and private capital" But,
he added, Il favor giving the people
the right TO operate their own power
business where and when it is essential
to protect them against inefficient
service or exorbitant charges. As an
important part of this policy" he said
"the natural hydro-electric power re-
sources belonging to the people of the
United States or the several States
shall remain forever in their possession.
Never shall the Federal Government
part with its sovereignty and control
over its power resources while I am
President of the United States" Con-
tinuing, he said: The power issue,
where vigorously handled in the public
interest, means abundant and cheaper
current for American industry, re-
duced rates and increased use in mil
lions of urban and rural homes and
preservation Of our water power re-
sources"
New Spirit in Power.
These declarations, with others, of
a progressive national power policy,
have been, in part, already transformed
into definite program of action under
the leadership of President Roosevelt.
The effect has been that power,
whether publicly or privately pro-
duced, in all its far-flung realm, pulses
with a new spirit of enterprise and
service and is moving forward toward
the fulfillment of its social and eco
fomic functions as the universal
servant of the people.
The great development works in the
Tennessee Valley, including Norris
Dam, the Joe Wheeler Dam, the Pick
wick Landing Dam and the Wilson
Dam at Muscle Shoals; the Boulder
Dam in the Southwest, the greatest
concrete dam every attempted by man.
begun in 1881 and to be completed in
1885; the Grand Coulee and Bonneville
Dams in the Northwest and the Fort
Peck Dam on the Upper Missouri,
which will be the worlds largest earth