The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1941-08-30
GOVERNMENT CONTROL

Commissioner Basil Manly OF the
Federal Power Commission adds his
bid for increasing government con-
troll in urging full regulation OF the
utility industry during the emer-
gency. He feels that rapid economic
and financial changes will call for
greater vigilance and more effec-
tive regulation than during what We
are pleased 10 call normal periods
The process must be speeded up.
he says, because regulatory bodies
will be successful in meeting emer-
gency conditions only by speeding
up the processes by which they de
termine the adjustments that should
be made in the public interest.
The reference 70 speeding up
Is in line with the times. even
though it doesn't mean in this case
what We are accustomed TO think OF
when that term is used. We think
OF the need for more speed in indus
trial production for defense, but
Commissioner Manly seems to be-
lieve that in the case Of the utility
industry it is a speeding up OF the
government control that is needed.
Speaking OF returns on huge cap
ital investments which will be re-
quired, Mr.. Manly says it is clear
that industry having productive life
only during the emergency should
be amortized during that time. but
generating plants and similar util-
ity equipment do not come under
this heading because they will stand
for many years. He sees the prob
lem as one Of depreciation and urges
the use OF increased profits to build
up utility depreciation reserves to
serve as IAN anchor to windward
against whatever financial and in
dustrial storms may hereafter
arise"
Turning to the problem OF reve-
nue. increases from the defense
drive. he says that rate reductions
obviously will not be justified where
utility may be receiving large rev.
enues during brief period with the
expectation Of suffering a serious
decline when the emergency de
msnd Is needed. Just as obviously
he adds. basic rates should not be
increased TO take care OF merely
temporary increase in expenses.
This seems TO mean that some
present rates can be maintained Il
the government can be convinced
that there are hard times ahead
Otherwise there may be forced re
auctions. In no cases are there &c
be increases, according to the ex.
ct -
Another consideration Is the tire
mendous power production that will
be available II the ST. Lawrence
waterway project is approved. From
this source hundreds of square mile
could be served with relatively
cheap power and light. This Is
something the government and the
power commission has IN mind II
setting up standards OF control.
The present plan is TO let private
companies distribute the electricity
IL government restrictions become
so severe that private companie,
cannot operate, 1t may be possible
that the government will try a hanC
at t. There Is no reason why the
government could not operate such
business II politics could be KEEP
out OF II and men OF proven ability
could be allowed TO direct the work
There, OF course, is where govern
ment operation fails. Politics crowds
cut business judgment and on thai
basis no business can continu,
sound and healthy.
There is great difference between
government operation and govern
ment control. The purpose OF con
troll is to keep big business in line
with the best interests OF the con
sumner. II is desirable till carried e
the point Of operation. There It be
comes dangerous.