Evening star., 1936-03-01
OFFERS EXPECTED
BY POWER GROUPS
Private Influences Sounding
Out Administration on
Compromises.
BY CARLISLE BARGERON.

BY CARLISLE BARGERON.
Now that President Roosevelt has
turned thumbs down on any extern
sion of the Tennessee Valley project
for the present, private power in
fuences are expected shortly to renew
their offers of compromise in the
great power fight.
Some of these influences have been
sounding out administration contacts
since the T. v. A. decision in which
the Governments right to dispose OF
its surplus power from Wilson Dam
In Tennessee was upheld. Just what
progress has been made is not known
but they are naturally heartened by
the Presidents decision. 1t was given
to Senator McNary, Senate Republican
leader, who conferred with Mr. Roose-
welt particularly on the question Of
establishing an authority" similar to
that of the Tennessee Valley Author
ity in the Pacific Northwest. It would
have embraced the Bonneville and
Grand Coulee projects. The Senator
was not favorable to one, believing
these water power projects can best
NC IldIlOlcu separately.
Extension Views.
What was considered more i'm
portant, however, was what was in
terpreted as the Presidents feeling on
the extension of the authorities gen.
orally. He was represented as saying
the country was not yet ready for it.
There are bills pending in Congress
which would fairly divide the entire
country into enterprises similar to
that in the Tennessee Valley. Re-
gardless of the outcome of the fight
in the courts on the holding company
act these projects would have put the
private power industry out of business,
and it was for this purpose their
sponsors designed them.
Mr.. Roosevelt's decision is not taken
to mean that the movement has been
dropped, but rather that it will go
over until after the election. The
power companies were admittedly hard
hit by the T. v. A. decision. Although
it applied only to the Wilson Dam.
their best legal brains have been un-
able to see any way in which they can
bring the question of the Tennessee
Valley act itself before the Supreme
Court.
Wendell L. Wilkie, president of the
Commonwealth and Southern Co., one
power industry, is one of those who
would like to see the whole business
compromised. In fast, he made def
mite offer several months ago long be-
fore the T. v. A. case came down, and
in a subsequent speech he announced
that his offer was received with con-
siderable sympathy in administration
circles until 1t got to the top.
Matters for Agreement.
Under this plan, briefly. the Gov
ernment and the utilities would agree
upon rates, Federal regulation for
holding companies and program for
rural electrifcation. The Govern
ment would continue with those of
its present power projects where neces-
sary to avoid waste and the utilities
would agree to buy the surplus power.
The Government in turn would agree
not to duplicate transmission and
plant lines or lend money to NUM-
cipalities to do it.
Then, the utilities would agree to
spend during 1885 and ls36-the offer
was made in Midsummer-twice their
minimum requirements which Wilkie
said would result in flow of $780,
100000 into industry.
The administration apparently has
no plan at present of withholding
money for the erection of municipal
power plants as is evidenced by Public
Works Administrator Ickes' demand
that the power companies cooperate
with him in getting quick decision
on this subject from the Supreme
Court. A recent decision by the
Fourth Circuit Court of Appeals up
held the Governments right to lend
money for this purpose,