The Western news. [volume] (Libby, Mont.) 1933-current, 1938-08-04
SEEN
HEARD
around the
NAT1ONA1L
CAPITAL
BIZ Carter Field ~
By Carter Field !

Bonneville and other government
power projects is being discussed
in New Deal circles, with the posi-
tive statement in some quarters
that it is really what the President
and David E. Lilienthal mean when
they use the word.
First, lets consider what has
been the popular conceptlpn-what
congress thought it was when 1t
was voting the money for IVA.
Stated briefly, the idea was that 1t
would be demonstrated what the
price of electricity should be to
small consumers-literally a yard
stick to determine whether rates
charged by privately owned utilities
were fair.
This is the only explanation Of the
"yardstick' that has ever been pup
liely considered. II is the only one
congress ever thought of. It IS what
the average, intelligent, well-in-
formed person thinks it is all about.
And it may still be the correct an
swer.
But let's look at this new concep-
tion. advanced now by people IN
sympathy with New Deal detectives
and particularly in sympathy with |
the government electric projects.
According to this theory, the
whole purpose is to demonstrate to /
the country, and to the electric IN
dustry, that if power IS produced T
in enormous quantities, and offered T
to ordinary consumers at very low
rates. consumption will leap up to |
an unbelievable extent, and hence
the reduction of rates would be the
soundest thing, economically, that
the electric companies could do. u
Note in this connection that Lilien-
thai was actually attacked by Ar
thur E. Morgan for having used
high pressure methods to induce
people to use more electricity than
Morgan thought they could afford.
Forced Prosperity
Note that Lilienthal has repeat
edly insisted that the privately
owned electric systems in IVA ter
ritory had literally had prosperity
forced upon them by IVA compe-
tition-that is, by being forced to
reduce their rates.
Note that in Bonneville what
seemed to the electric industry 9
very bad policy, from the purely
economic standpoint, was laid down
In this case the stream flow Is such
that there is an enormous quantity
of constant power, that IS, power
which is available for "a hours
day, and cannot be economically
stored during the hours when the
consumption might be low. Fol
thiS sort of situation, private power
experts figured the most economical
use would be to get industrial plant:
TO locate near the switchboard, anc
particularly the type of plants which
would operate in three shifts, thu.
using all the potential power.
But emphatically the government
does not want this. 1t wanted Wild
distribution. 1t was to give tn
household consumers for hundred
of miles around the benefit of thi
cheap power. The answer, accord
ing to this new theory, is that if tn
rates were made low enough, TIL
small consumers would use S
much electricity that the whole or
GRAFTON would be profitable. Blu
also that it would be an outstandin
object lesson to the utility execl
tives Of the country, showing ther
that there is gold in the hills if the
will only mine for it with low rate
Certainly, one New Dealer poin
ed out, Lilienthal must have bee
ignoring the old yardstick conce
ton when he reported to congre'
recently on the ALLEGATIONS as
cost of the three first IVA dan
as between power, navigation al
flood control.
Marked for Slaughter
The latest development iii
Maryland purge" situation is tn
Senator George L. Radcliffe, W
does not come up for reelection |
til 1910, is marked for the slaught
by the supporters of Represen
Tive DdNlu y. LGWio. ViiGt iis
pened was that Radcliffe, after |
nouncing some time back that
was for the denomination of Sena
Willard E. Tydings, later accept
the post Of campaign manager
his colleague.
This seems to have taken
Lewis people by surprise. In ia
they are indignant They are S
ing that Radcliffe has now sho
himself in his true colors, after h
ing posed as New Dealer since
election to the senate in 1884.
Actually it should not have S
prised any one. Again and ag;
while the Tommy Corcoran Gre
was looking for somebody to
against Tydings, they would &C
Radcliffe for advice. Always r
cliffe told them that he was
Tydings.
So while it may not have
figured in advance that he VIZ
take the Craftsmanship Of Tydi
campaign, it should not have
prised the Lewis people that
4 s-s4 sx, TtrIt