The midland journal. (Rising Sun, Md.) 1885-1947, 1935-01-04
PRESIDENT DEMANDS CHEAPER
ELECTRIC RATES

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lower rates throughout the privately
owned utility field.
There is no longer the slightest
doubt about the Presidents de-
termination to force utility rates
down to the point where the living
standards of the great mass of the
public would be measurably i'm
proved. But it is equally apparent
that he believes such an objective to
be to the best interest of the CAPT.
talistic system, and one which, If
achieved, would strengthen private
initiative rather than lead to public
ownership.
In brief, it can now be stated as
a fact that the objective is not uni
versal public ownership; that he be-
lieves in the retention of private
ownership in the power field, al
though he is ready to extend public
ownership for "yard-stick" purposes
and in instances where large-scale
regional planning requires; that he
is convinced that cheaper power is
to the advantage of the privately
owned utilities.
In the Presidents eyes the pri-
vately owned power companies are
blind to their own best interest, and
since what he considers their proper
education fits in with his own plans,
he is out to enlighten them.
He feels that the principles OF
mass production and low price on
which Henry Ford built his sensa-
tional success can and should be
applied TO the power industry-and
he means to see to it that this is
brought about.
But he further declared that in so
doing he will be Strengthening, not
weakening, the private companies
and the system which they represent.
According to those close to the
President, his arguments begin with
a desire to preserve the capitalistic
system. He shares with some think
ers on this subject the belief that one
of the most effective methods of do
ing this is to provide cheap power
and to make it available to even the
poorest people. This, it is contend
ed, would materially improve the liv-
ing conditions of the masses and
therefore reduce economic discon-
tent.
The second step in the argument
is that the individual private power
companies would do as good or bet
ter business from the profit point of
view, if they would cut their rates.
In evidence, the Administration
power experts point to the tremend-
Gus increase in power consumption
in the Tennessee Valley, both from
the Government plants and from the
private companies, resulting from
The combination of cheap power and
cheap appliances fostered by the
Electric Home and Farm Administra-
ton.
The breakdown of negotiations be-
tween the White House and a group
of influential utility executives came
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the IVA ''yardstick" and the argu-
ment for lower rates throughout the
private utility field.
The move for construction of
municipal and government-owned
plants in New York City was direct
answer If rates won't come down
voluntarily, the Administration in
tends to force them down through
government competition wherever it
can.
But since Mr.. Roosevelt does not
want to establish public ownership
throughout the entire country, his
next resort is to inducement.
This is seen in talk of extending
the credit facilities of the EHFA to
the entire country. Under such an
extension the Government would CO.
operate in promoting sale of cheap
appliances in any area where the
private utilities would not bring
down their rates to level satisfac-
tory to the IVA.
Should this step be taken it would
be accompanied by powerful prop
uganda campaign designed to dem
onstrate to the private companies the
mistake in their assumption that
existing rates are necessary to their
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