Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-02-23
ELECTRIC DEVICES
. HAVE BOOM SALES
E. H. F. A. of New Deal
Group Reports Farm and
Town Use Heavy.
BY BLAIR BOLLES.

trio Home and Farm Authority,
little known New Deal corporation
dedicated to spreading the message
Of electricity throughout the United
States. r-.~ .---.'-'
While the T. v. A. generates power
to serve a vast Southern area and
the Rural Electrification Admins
tratiOn offers long-term loans to utili-
ties willing to extend their lines into
remote regions denied the white coal,
the E. H. F. A. caps the admins
tration's far-reaching power program
by financing on long-term contracts
the purchase of electrical appliances
clothes washers, domestic clothes
driers, vacuum cleaners, motors, milk
coolers, cream separators and deep and
shallow we'll water pumps when pro-
duced by manufacturers whose prices
and products have been approved"
Until last Summer the Electric Au-
thority concentrated its attention on
the Tennessee Valley and yesterday
George Munger, commercial manager
Of the agency, declared: I'VE have
plastered the territory with appli-
ances."
Reincorporated Last August.
The organization was reincorpo-
rated for $850,000 August l, when
its headquarters were moved to the
District and its long-term financing
services were offered to the country
at large. Since then it has signed
contracts in Illinois, Ohio. Indiana.
Nebraska and Wisconsin.
In consequence Of the E. H. F. AS
activity in 1884, the three major utili-
ties serving the Tennessee Valley
area-Georgia Power Co., Tennessee
Power Co. and Alabama Power Co.
which ranks twenty third, thirtieth
and fortieth, respectively. in size
among the country's concerns, were
first, second and fifth In the value Of
electrical appliances sold, according to
the report of the trade journal, Elec-
trical World.
Figures supplied by the Edison Elec-
trical Institute show the increase in
appliance sales for Tennessee Power
over 1888 was 1888 per cent; for
Georgia Power, 1892 per cent, and for
Alabama Power, 1873 per cent.
The spread of power apparatus Is
demonstrated further by statistics Of
how far utilities in 1884 exceeded in
| appliance sales the manufacturers
quotas for such sales. With the United
States average at 1875, Georgia Power
was high in the country, with 353
per cent; Tennessee Power, second,
274 per cent, and Alabama Power,
Third, 235 per cent.
In 1888 the Tennessee Valley area
was much more thoroughly electrified
than many other sections of the
country, figures gathered by one in.
vestigator show, so that the z. H. r.
A. was not pioneering in an untapped
and unworked region.
Refrigerator Figures.
In the case Of refrigerators. sat-
uration figures as of December 81,
1884. show the following percentages
Tor the Valley area above the United
States average:
Georgia Power, 45.9 per cent.
Tennessee Power, 3l.8 per cent.
Alabama Power, 256 per cent.
The E. H. F. A. is the financing
company and the missionary. The
utility is the bill collector, and the
retail dealer is the salesman, under
the authority plan.
This Governmental spreader Of
bright light and mechanical ice boxes
hasn't lost cent on any of its financ.
ing, according to Munger, and in an
mrevealed number of thousands OF
contracts for purchase of the annli-
ances. there have been no returns.
But you can't get the story from
the amount Of contracts e. H. r. A.
finances" Munger said. Our effort
IS aimed at increasing appliance
sales, whether we finance the sales
or not"
spurred activity on the part of pri-
vete financing institutions and other
agencies has followed z. H. F. A. in
vasion. Some Of the examples cited
are these:
In Richmond. Ind, an E. H. F. A.
contract was signed with the local
utility two months ago. Almost at
once local bank established a similar
plan, so that installation of electrical
appliances was almost doubled.
In one Tennessee Valley area, SUD-
posed to be populated by poverty.
stricken inhabitants, REFRIGERATOR.
ranges and water heaters were sold bv
a utility, through E. H. F. A. financ.
ing, on 24-month to 36-month nav.
ment basis. To the surprise of the
utility, the inhabitants sought the ap-
planes eagerly and offered for the
most part to pay cash, $50. 900 in all.
Financing Plan Initiated.
In Springfield, ILL.,, soon after the u.
H. F. A. signed a financing contract
with private utility, the publicly.
owned power plant initiated a financ.
ing plan of its own which met Home
and Farm Authority terms.
The E. H. F. A. has not sought q
contract here with the Potomac Elec.
trio Power Co., which has tie-up with
the Federal Housing Administration
operating through the Riggs Bank.
The executive order setting up the
E. H. F. A., authority for which was
contained in the national industrial
recovery act, also permits financing
directly through retail dealers, but in
most cases this has been found un-
feasible. The private or municipal
utility which contracts with the e. II.
F. A. must, in many instances, lay
lines into the untapped territory as
we'll as sell the appliances, and this
power distribution is beyond the scope
Of the dealer.
"We're not trying to compete with
anybody" Munger said. 1--WE have .
service which the utilities know about.
and II the power firms are interested
do ~.