The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1938-09-10
-SE8
NEWSPAPERS OPINIONS
is THIS STILL AMERICA?

What is now going on in 16 counties of Texas
an area greater than that of Massachusetts and
Connecticut together - affords perhaps the most
striking illustration yet given of the destructive
effect of our national power policy upon privately
owned utility companies. 1t proves, against any
vehemence of official denial, that where govern
ment enters the electric power field private enter
prise must retire, making what salvage it can.
Texas Power & Light company is confronted
with the government-subsidzed competition of the
Lower Colorado River Authority. The private COM
papny offered to buy power of the Authority on
terms which the formers president asserts would
have yielded to the Authority the greatest amount
of revenue and at the same time have yielded to
the greatest number of people in Texas the bene-
fits that might arise from the generation of such
power" The proposed terms were evidently not
the point OF difficulty, since the Authority rejected
this offer with such fnaty that the company was
moved to offer to sell all its property within the
Authority's zone of influence at cost, making, III
the words of President Carpenter of the Texas
Power & Light company -. desperate effort to
compose the situation"
Here We have, OH a larger scale, 4 repetition Of
the recent situation in Knoxville, Tennessee. Here,
as there government agency constructs power
generating plants, needs market for ITS impend-
ing power product and proceeds to take it away
from a private company under duress. In both
cases the local utility companies face the choice
between remaining to compete, on mposslbly uh-
even terms, with taX-free public agencies financed
with public monies; OF selling their properties OF
portions thereof, to the threatening governmental
competitors such prices as the latter are Wiling
to pay.
Texas is not the only region in when govern
rnent agencies intend to uSe again the market
Selling tactics which were 50 SuccesS1ul IN hhoH-
Vile The head Uf the Commonwealth & Southern
Corporation has made his third proposal OF a plan
for arbitrated settlement of his cOmpanyS head-oh
collision with the IVA. The first two having been
rejected Mr.. Wilke now suggests that the Securl-
ties and Exchange Commission be asked to deter
mine the price at which his company is to sell as
whole its properties in the localities in which IVA
plans to market power. The Twas answer TO this
proposal has not been given, but is Is only too clear
that the government pressure compalgn 10 take
their markets away from private companies on
dictated terms continues.
Texas Power & Light is subsidiary of Ameri-
can Power & Light which began its pioneering OF
electric power in Texas nearly a generation ago,
When it entered the state there no impor-
tant interconnected systems there and very little
mileage of transmission lines; service was Of the
Indispensable variety characteristic Of isolated
plants and rates averaged two TO three times Their
present figures. The company and its owners ven
tured much to equip great portion Of Texas with
electric power; they did in the hope Of proItng
through service rendered. 1t is now held-by those
who think so-to be social progress and reform
and all that to deprive them Of the fruits OF 20
wears of commercial adventuring, of precisely the
sustained and organized exertion which has trans
formed the wilderness into the America that IS.
Wall Street Journal.