The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1938-10-27


Industry are being voiced here, not
only by Administration supporters
but by impartial observers.
Everybody wants to see business
nick up in a big way. It is the feel
ing here that the greatest obstacle
to recovery has been the more or
less open warfare between the Adj
ministration and the big power COM
panies. There are more hopeful
SIGNS than ever of reconciliation OF
the major differences, which would
mean, in the opinion of most econo-
mists, the beginning of a real bust
ness boom.
It works out this way. The pub
lie utilities have been for years
steadily extending their services. AS
population increases, especially In
the large cities and their suburbs,
the demand for electric light, gas
and telephone services increases.
Every new home built anywhere
in America today means new GUS
toner, and involves laying new gas
mains, setting up more poles, run
ming more wires, and adding to the
capacity of the gerenating plant, or
providing additional facilities.
That means that in order to give
service the utilities continually have
to invest more capital in their
plants. That has always been true,
and it accounts for the increasing
monetary size of the big utilities.
Every new customer means so
much more copper wire for trans
mission lines, so many more poles,
80 much additional equipment to be
furnished by electrical manufacture
ers, and, naturally, so much more
employment for labor. When ex-
pansion of utility services lags a
hundreds kinds of industry slow
down.
Ready to Spend Billions
The utilities have stated that they
are ready to spend literally billions
Of dollars in: extending their ser
vices and enlarging their plants as
soon as they are satisfied that the
Government is not going to render
their investments worthless by COM
peting with them at the taxpayers
expense.
The Governments attitude has
been that the power companies were
charging the public too much for
their services, in order to earn di-
vidends on fictitious capitalization.
The device of holding companies"
to control many subsidiary COM
panies has been, it is contended, a
scheme to get something for moth
ing out of the public's pockets.
Hence the statutes designed to
eliminate many of the holding COM
anies, the establishment of the Sc
curities and Exchange Commissions
to supervise all future offerings OF
bonds and stocks, and the setting up
of "a ''yardstick," in the shape of the
IVA power development, by which
to establish fair costs for electric
service to consumers.
Those, and the Governments fur
niShing of funds to municipalities to
enable them to go into the light and
power business, have had the natur-
al effect of frightening capital away
from further investment in power
securities.
What President Roosevelt means
when he denounces industry as non
cooperative is that the utility lead
ers, particularly, have been resent
fnl of Governments attempt to reg
ulate their business and instead of
being willing to talk the whole thing
out frankly and freely, have in
dulged in violent attacks upon the
whole Administration policy and
have sought, in the courts and 9TH
erwise, to prevent the Governments
program from working.
e, Now More Amiable
Much bitterness has thus been
generated on both sides, but there
Is now a more amiable disposition
being shown. The realization is ap-
parently growing in Administration
circles that the American people are
very decidedly in favor of a revival
Of industry and prosperity.
On the other side, the magnates of
the power business are beginning to
take a realistic view of the situa-
ton. After all, they are the man
ages of other peoples investments,
and their stockholders are begin
ming to impress on them that an
sngry dispute and fighting the Gov
eminent do not earn dividends.
The ray of hope is seen in the
action of the largest of the utility
holding companies in agreeing to
subject its affairs to the scrutiny of