Evening star., 1935-02-21
Sultan Welcomes Delegates
to Ninth Biennial
Conference.
EXCESSIVE RATES LAID
TO DECENTRALIZATION
President of League Declares Con.
sumers Pay Half Billion More
Than Necessary.

Delegates from cities with public
owned utilities. meeting in the ninth
biennial conference of the Public
Ownership League of America at the
Willard Hotel. beginning today and
lasting through Monday, heard sew
eral speakers argued for public owner
ship and distribution of public utili-
ties, including everything from gas
and electricity to milk and food.
Delegates to the conference were
welcomed to the city by Lieut.. Gel
Dan I. Sultan, District Engineer Com-
missioner. Response to the welcome
was made by Willis ]. Spaulding, COM
missioner of public property in
Springfield. H.. and president of the
Public Ownership League.
Spaulding blamed overcapitaliza-
ton of utilities for excessive rates.
This overcapitalization," he said,
puts a charge of nearly $500. 900. 900
annually on light and power users of
the United States in excess OF the fair
cost of the service"
Trade Body Findings.
He said the findings in the inveSti-
cation of public utilities by the Federal
Trade Commission directed favorable
argument toward public ownership.
He said also that public ownership has
become more popular because of the
generally recognized failure of regu-
lation.
Samuel A. Carlson, for "a years
mayor of jamestown, N. Y. told the
delegates the City of jamestown owns
its own S4,0O0.OOO electrical plant and
distribution system and has paid for
it out of the profits over period Of
20 years. He said jamestown. which
has a population of $4,000, with
$4,000 consumers, has the lowest cleo
trio rates of any city in the State Of
New York. The city-owned company
pays S55.0o0 annually into the
treasury of the city to reduce taxes,
he said Despite this, Carlson asserted,
there is more than S500,000 in the
treasury as surplus. He said the city
IldO SdNcu SlUsUUUsOUU III ~ SCdlS Wy
the operation of the plant.
Leaving the subject Of electricity
Carlson told the delegates that under
a plan of central distribution of milk
the city expected to save milk con-
sumers several thousand dollars anDr-
ally. He said the city could distribute
milk at a cost of cents per quart.
He said jamestown has rs milk deal
ers. He also said that jamestown had
effected a tremendous reduction in
food costs by its central market system
Future Development.
James D. Donovan, superintendent
of the municipal light and power plant
of Kansas City and president of the
Kansas Municipal Utilities Associa-
tion, discussed some of the problems
in the future development of mu-
nicipal light and power plants. He
said the most serious problem con-
fronting cities who have voted to en-
gage in municipal ownership of utili-
ties is the delay encountered by the
use of court injunctions and the long
drawn-out legal proceedings following
them.
Speaking of the possibilities of the
development of power by local mu-
nicipal plants, the speaker said:
Il feel that greater possibilities of
employment and a fuller social life
can come to the citizens of our coun-
try through the establishment of
numerous municipal plants through
out the country than can be expected
from the establishment of relatively
few large plants, owned and oper-
ated by Federal authority"
Speakers at the conference brought
out that $500 municipalities in the
United States now own their public
utility systems of various kinds.
During the five days of the con-
ference. public ownership advocates
from all parts of the country, includ-
ing social scientists, economists and
special students of these problems,
religious and civic leaders and heads
Of public utility companies, will be
heard. Three sessions will be held
daily.