Imperial Valley press., 1936-07-15
BEWARE OF THE NEW
POWER COMPANY CONTRACTS

BEWARE OF THE NEW
POWER COMPANY CONTRACTS
The new contracts being used by the
Southern Sierras Power company con-
tain dynamite.
Used as part of a new and enticing
merchandising campaign being inaugur-
ated by the company, the contracts con-
tain joker, namely, that purchasers of
merchandise on long term payments are
required TO use nothing but company
power throughout the period of the pay
ments.
Sales methods are the sacred domain
of private industry We have no mega
tive comment to make relative to this
latest merchandising stunt of the power
company. It has all the earmarks of
being exceptionally good. Prices are
regular, terms ar very low, and unusual
inducements are present in the form Of
installation and service.
But at that point, pure business stops.
The contract utilized throws the plan in
to the field of politics and competitive
strategy against the very people who are
invited TO buyl
The old contracts of the company are
being eliminated and new ones substi-
tuted. These contain new clause which
according to the copy furnished this of
flee, reads as follows:
"(2) SO LONG AS THE PURCHAS-
ER SHALL PURCHASE AND TAKE
FROM SAID COMPANY, its successors
or assigns, and pay for according to the
schedules, rules and regulations there
of. from time to time, 5 a b is h
ed and in effect ALL OF THE ELEC-s
TRIO ENERGY REQUIRED OR USED
BY THE PURCHASER FOR ALL PUR-
POSES IN AND ABOUT THE PREM
ISES UPON WHICH SAID APPLl-
ANCES AND PROPERTY SHALL BE,
FROM TIME TO TIME, INSTALLED
OR USED, purchaser shall have the
right, in lieu of paying the balance Of
the purchase price in the amount and
within the time aforesaid, to pay said
balance of the purchase price IN month
~ installments, :. etc. tc.
This merchandising offer is very en-
itcing, but at the same time dangerous.
Few people read contracts, and fewer
understand half of what they read. 1t
is therefore reasonable to believe that
many might buy on the long term plan
and thus play an important part in I'M
PEDING THE PEOPLES OWN PRO
GRAM FOR POWER DEVELOPMENT
The power company recently proposed
to the district, an eight-year joint oper-
alton plan. The proposal was an ack-
nowledgment that the company could
no longer expect to stop the power pro-
gram.
The 8-year proposal was refused by
the district for strong and worthy rea-
sons. The board proposed, instead, to
purchase outright company lines and
equipment if a fair price can be estab-
lished. The company turned down the
outright proposal and continues to fight
for the 8-year plan.
IT IS SIGNIFICANT THAT TIME
PAYMENT TERMS ON CERTAIN
KINDS OF ELECTRIC EQUIPMENT
HAVE BEEN EXTENDED TO COVER
A PERIOD OF 8 YEARS-IDENTICAL
WITH THE PERIOD SUGGESTED IN
THEIR JOINT OPERATION PROPOS-
AL!
No lawyer or expert is needed to cal
culate the strategy.
It becomes apparent to everyone that
the plan is to SO tie-up customers that
the power company will be in stronger
position to dictate terms to the district.
The district is already in the power
business. Its next move will be to en-
large the BraWley power plant and eX-
tend its service. Knowing this, the pow
er company's logical move is to hog
tie consumers SO that THE INDIVID-
UAL WHO WANTS THE DISTRICT
PLAN, WON'T BE ABLE TO HELP IT
TO TAKE SHAPE.
There is no doubt but that the compa-