Evening star., 1940-06-19
Defense Plans Spur
Over
Federal Power
Utility Firms Contend
Privute Plants Will
Be Adequate
BY CHARLES F. SPEARE.

ny NnAhLES r. SfEAhk.
(Released By Consolidated News Features.)
NEW YORK, June 19.-Whether
the public utility companies are
fully equipped to furnish the elec-
trio power required for a national
defense program of the proportions
proposed Is as much a subject for
controversy as the present prepared
ness position of the railroads.
The private management Of the
utilities state that they have power
and to spare for any emergency.
On the other hand, the Federal
power interests claim that it will
only be as the electric energy from
their projects supplements that Of
their subsidized competitors that
ample current will be available to
the war industries geared up to a
maximum production.
In the last war American rail-
roads were taken over by the United
States Government and for nearly
three years were operated under
its authority. They were then a
more important element in the ma
tional economy than the public
utilities. There was no transporta-
ton supplement of consequence, as
is the case today when motor trucks
haul a substantial amount of the
total freight moved in this country
and from now on will doubtless
play an important part in the
movement of war materials. 1t may
be said of the steam carriers that
they have at present an excess of
facilities, although vital portions of
their equipment are incapable of
doing an efficient job.
Higher Standard Kept.
The public utility industry has
been maintained during the last
decade on higher relative stand
ard than that Of the railroads, with
greater annual investments in new
equiment and higher ratio of de-
probation charges. While railroad
carloadings and gross earnings have
been declining the measurements of
activity in the utility field have
shown progressive trend. It is
stated that s650,0O0 900 will be spent
by the private power companies this
year to create additional plant ca
pacity. This would raise the an
nual output by 1,250.000 kilowatts.
Advocates of Federal power take
issue with the private power pro-
ducers on the question of sufflciency
of supply. This week President
Roosevelt has written Chairman
Leland Olds of the Federal Power
Commission to take immediate
steps to insure an adequate supply
OF electric power in the areas most
needed and to keep a check
on the adequacy of such power sup
ply to meet such (defense) de-
mands." This does not imply. how
ever, that present facilities of the
private companies are not sufficient
ii properly co-ordinated and massed
at strategic industrial points.
The claim of the private utilities
that they have abundant power to
meet all domestic and commercial
ASAAA2 SAASAAto Va VIC SOulIt1y ID lllduC
in connection with the steady in
crease in hydro-power generated in
the Federal and municipal plants
financed with loans from the United
States Treasury or with P. w. A
grants.
Waste Of Capital Seen.
In a book just published-"Power
in Transition" by Ernest R. Abrams
the author has brought together
the Is Federal power projects, COM
pleted and under construction
with an ultimate generating ca
pacity of 7,056,375 kilowatts and a
final cost of about s1,750.00O, 900
In addition he lists ATT public pow-
er projects financed by grants from
the P. w. A.. whose eventual cost
will be 100000. 1t is his opin-
ion that in most instances where
Federal power projects have been
set up in a region of active power
production under private manage
ment much waste of capital and OF
facilities will result. He cites par
ticularly the great addition to. the
output of the Bonneville and Grand
Coulee Dams, together represent