Evening star., 1941-07-19

While about s470,000,000 is to be
spent ually for expansion
through the use of Government
loans or subsidies during the war
emergency, this is not what the
American electric power Industry
would normally have spent. The
average TO meet the industrial needs
of America should have been be-
tween 100000 900 and $1,000 100000
a year for the last eight years. The
failure to build generating capacity
catches America off guard. There
will be adequate supply of electricity
for defense needs but civilian needs
Will feel the pinch. This need not
have happened if the administration
had not waged a war against the
private utilities.
The most urgent need for electric
power is to manufacture aluminium.
Recently administration officials
attacked the Aluminium Co. of
America for not expanding its
plants and yet. now that the Gov
ernment program for increasing
electric power capacity has been
announced. it is difficult to under
stand where the Aluminium Co.
of America would have gotten
the additional electric power if
that company had increased its esti-
mates of aluminium needed. Ger
tainly had there been bigger esti-
mate in November, 1910, the elec-
trio power plants to make the addi-
tional aluminium would not have
been available without serious cur
tailment of other uses of electricity.
Greatest Cost for Power.
THE greatest investment cost in
creating facilities for the manu-
facture of aluminium" says the Tru-
man Committee of the Senate in its
recent report, and the most diff
cult to obtain is power. One kilo-
watt Of installed capacity is the
estimated requirement for the pro-
duction of 1000 pounds of aluminium
per annum
Therefore private industry ex-
poets to furnish less than one-third
Of the power needed, and without
Government power the Nation
would have been wholly unable to
obtain the aluminium so vitally
needed for the defense program"
But the Senate Committee did not
review the reasons why private
power companies have not been
permitted to expand and why the
Government financed enterprises
were permitted to grow as investors
were frightened against lending
money to or buying stocks in private
utility companies.
The shortage of electric power
was referred to by I. w. Wilson,
vice president of the Aluminium
Co of America. in his testimony
before the Senate Committee. He
said:
I'VE are producing all that we can
produce until We are given more
power. We have had specific plans
that have been offered to the Gov
eminent as means of increasing the
production of aluminium, and they
have all been dependent upon addi-
tional power being made available to
Hs, and We have not gotten any of
that additional power"
Some Of this poWer-about 5000
kilowatts-waS withheld by order of
Secretary Ickes since last February.
But not until last Wednesday. when
there was White House conference
10 determine policy was it definitely
revealed that the Government at
last was going to break the bottle
neck in electric power production
by permitting needed expansion.
Responsibility for Delay.
The responsibility for the delay in
furnishing electric power with which
to make aluminium is now equal in
Importance to the controversy over
uhy aluminium production has not
been accelerated The administra-
tion would like the public attention
10 be diverted from its own mis-
takes and hence it has been ac-
eusing the Aluminium Co. of
America of failing to make proper
estimates, when, in fact, this is a
responsibility of the War and Navy
Departments as well as Congress
SAYS Mr.. Wilson in his testimony:
"As late as April 3. 1899, Congress
had only authorized the Navy to
build 5000 planes, and the Army
5000. Such a program required no
expansion of production facilities.
particularly when the Aluminium
Co. of America already had more
than years supply of metal
on hand. Yet late in 1893, the COM
pany did inaugurate program
which, with the additions since
made TO it, calls for capital eX-
penditure of over S200,0O0,000 of the
eompany's money The Aluminium
Co. of America is now produc-
Ing we'll over double the amount
of aluminium produced in 1888 and
when its present program Is COM
pleted the production of 1898 will
be trebled.
LAS this committee is well aware,
the production of aluminium re-
ouires enormous quantities of cleo
tric power. 1t takes not only large
sums of money but many wears
10 build the extensive hydroelectric
developments necessary to get
blocks Of power in the magnitude