Evening star., 1941-07-23

l. IL
squeeze by the Government to force
the private companies either to sell
out or go out of business has begun.
The tremendous power of priorities
IN equipment and materials is being
used already in discriminating
against private companies and the
Government power project directors
are being compelled on orders from
Washington to take steps that will
force the private companies out of
existence.
On September 81. 1882, President
Roosevelt in a campaign speech at
Portland, Greg, said:
"State-owned or Federal-oWned
power sites can and should properly
be developed by Government itself.
When so developed private capital
should be given first opportunity to
transmit and distribute the power
on the basis of the best service at
the lowest rates to give a reasonable
profit only"
On July 6, 194l, the Seattle Times
IN a news article on its front page
said:
Secretary of the interior Ickes
believes there is no place for the
Puget Sound Power &, Light Co. and
similar power companies in the
State as private utilities, says Abe
Fortas, newly appointed public
power division director Private
power is a handicap to the Ickes
program" 1872
New Contract Refused.
Already the officials of the Bonne-
vile project are refusing to make a
contract with the Portland General
Electric Co. for the continuance of
power supply unless the latter agrees
to sell out the company to the Gov
eminent. Having discouraged the
private power companies from their
normal expansion the administra-
tion refuses now to assure these
companies that the power they are
now getting from Bonneville will be
sold to them as in the past and
hence arrangements are on a
month to month basis-a death
sentence leverage. ... .. =,
Meanwhile there is big demand
for power for defense. 1t might be
assumed that the present shortage
justifies the building of the T. Y. A.
and the Bonneville projects. But
the fact is that the reliance of the
country on hydro-electric plants is
dangerous and already drought sea-
sons in the Southeast have demon
strated how much more secure the
Nation would have been had the
private utilities been permitted to
balance expansion between steam
plants and hydro-electric develop
ments as in the past.
What really has happened will
some day be recognized as a major
political scandal In their anxiety
to get power loads for the big
hydroelectric projects, the New
Dealers used their influence at
Washington to compel the locating
of big defense plants and industries
near the big dams of public power.
thus taking away from the normal
industrial growth OF the area the
power it might have had and ignor-
Ing the big power reserves in and
around New York and Chicago and
other Midwestern and Eastern
points. Senators and Representa-
tives from these States have been
asleep even as Congressman from
Far Western States have jeopar-.
died the expansion of the normal
industrial operations in their own
areas.
Lines Being Duplicated.
Then, too, through rural electri-
fcation money furnished by Con-
gress, transmission lines are being
duplicated in several places. nota-
bly, Texas. so that the markets of
private power companies are being
Yaided. Coincidentally, the Federal
Power Commission is sending its
agents around the country to re-
duce the valuations of existing op-
Grating companies and thus cut
down potential income that can
be earned under State regulation of
rates. This. together with the growth
tn taxes, is suffocating the operating
company financial structures and
making it difficult for them to
raise new money.
A feud is on, moreover. between
the Federal Power Commission and
Secretary Ickes for control of the
big public mower systems Mr. IckeS