Imperial Valley press., 1935-06-03


answers one Of the points raised by
Mr.. West in his talk at your last
meeting.
You will remember he said that
the arguments ior the district going
into the power business could be
advanced to justify its going into
the grocery business. or the shoe
business. or the hardware business.
He made this statement. of course,
in order TO gain the sympathy Of
the merchants for his company. OF
course. there is-no basis for his con-
tention. if it is analyzed in ac-
cordanCe with the principle which
I have just given you. The grocery
business. the shoe business, and The
hardware business are not mOnopo-
Istie in any sense of the word, but
are highly competitive. In each case
the people have the opportunity of
dealing with 4 number of similar
stores in each community, ana if
they are not satisfactory. then. by
Cealing with similar stores in other
communities. 50 that there is en-
tirely lacking the elements which
make up the demand of the people
for the ownership and control OF
their basic utilities.
The district has been in the water
business for many years. but you
have never heard the argument ad-
that because OF this fact it
should go into the drug store or
clothing business. but this is just
rs logical as TO say that because
the district might go into the pow
er business. it should be an argu-
ment for it to go into the grocery,
shoe. or hardware business.
Unwilling To Cooperate
The power companies of the
United States simply are unwilling
to recognize the handwriting on the
wall. and TO realize that It is only
a matter OF time until the people CT
the various communities will take
over the power systems in the same
way as they have taken over and
on the water systems. In
stead of trying to work with the
people and work out a plan for the
best interests OF all concerned, the
power companies are resorting to
everv method known to combat the
wishes Of the people. That the pow
er companies will lose out in the
long run IS a certainty. This was
pointed out in a recent article by
the World-knoWn economist Roger
who warned the holders OF
power company securities OF this
fact. telling them 10 be prepared for
the people taking over the power
business Of the country. The power
are spending large sums
of money trying to stave off the day
OF reckoning. BY means Of law
suits they are delaying and ham
pering power projects desired by
the people of various communities.
If il turns out that the stockholders
of the power companies lose their
investments. it will be due entirely
10 the policies and attitude adopted
by the executives Of the power COM
panies in dealing with this matter
History of Power Co.
In order that you may have a
clearer understanding Of the entire
power question as it affects Imperial
Valley. I want 10 take minute and
discuss with you briefly the history
Of the power company. In 1905, the
Nevada Power. Mining and Milling
company was organized and con-
ytructed a power plant with the idea
Of serving Tonopah and Goldfield,
Nevada. IN 1907, the Nevada-Cah-
fornia Power company was or
ganized and purchased the Nevada
Power. Mining and Milling COM
pany.
Soon. however. it became apparent
that the mining load in Nevada not
cnlv would not absorb all Of the
power produced by the power COM
pally. but also that the load would
decrease as the mines were
worked out. and 50 the promoters
who had invested their money in
the bower enterprise, looked around
for another market and for this
purpose organized, in 1911, the
Sierras Power company. A
line was constructed into the San
Berrardino territory. q distance Of
over $50 miles. but mere was found
direct competition from the South
err California Edison company and
the Pacific Light and Power COM
pany. which were serving the larg-
est towns and the developed sec
tions of Riverside and San Ber-
uardino counties.
Because Of the high cost Of its
hydro plants. as well as the dis
tauce the power had to be trans
mitted. the Southern Sierras Power
company could not profitably COM
pete with the other two companies
IN and around San BernardinO, 50
+ was necessary to look further for
an outlet for its power, and as a
result the lines were extended into
Imperial county. and later on
across to Yuma. Here was terri
tory where it did not appear com
petition would be possible and
therefore. the Southern Sierras
could charge all the traffic would
bear" ana in this way realize a
profit Oh its wholly unwauanted
and Uneconornic power system.
1t is interesting to note. in this
connection. that the major trans
mission lines Of the Southern Sier-
ras Power company were con-
structed oY q subsidiary company
known as the SierTas Construction