The Waterbury Democrat., 1945-07-26

able on recent operations, these facts stand out:
 First, the cost. Congress has ap- propriated $668, LOGO, ,O00. Bonds sold total $65 100000. The net income from power operations after pay ment of all current expenses, but before depreciation, is SIS, ,000, ,000. In addition, IVA took over from the War Department the old Muscle Shoals and other World War de- velopments at a book value of $36,- 100000. That makes the total cost to date $884 100000.
 CONSTRUCTION PLACED
 AT $56O, 100000
 Where has this money gone? Con- struction work still sin progress has taken $560 ,OOO, ,000. Of this sum, ap- proximately $460, ,000 ,000 is for power projects. The balance is for flood control and navigation.
 In addition, SAT 100000 has been spent for non-income producing de- velopment of the Tennessee Valley. Two million dollars worth of bonds have been retired and there is $41,- 100000 in the IVA treasury. Loans to municipal power companies are $3,0O0,000. Inventory is put at ST. 100000. Depreciation of $4,000,000 balances the books at the above mentioned $844, ,000, ,000 cost.
 On the basis of operating experi- ence up to the present, IVA esti- mates that its income from the sale of electric power, which is its only source of income, will be sufficient to retire the entire investment with in 60 years, without interest.
 For the past year, TWAS gross ir- come from power sales has been $38,000,000. With operating ex- penses of 10000, 900, the net income has been $18,000, 900. This is the equivalent of little over 2 per cent interest on the power, flood control and navigation investment. It is nearly 4 per cent on the in- vestment in power facilities alone.
 The charge that IVA can make this return because it doesn't have to pay taxes does not bear up. In lieu of taxes IVA is currently pay ing over $2,000,000 a year to state and local governments where it owns property and does business. MOST ELECTRICITY GOES,
 TO WAR PLANTS
 TWAS electric power generating system of 24 water and II steam plants has been greatly expanded for war production of aluminium and chemicals. Three-fourths of it's present 2,200,000 kilowatt capacity goes to war plants.
 In addition IVA furnishes power to over half a million consumers through 130 locally owned munich pal and coop distribution systems. Over 20 per cent of the consumers are rural. One of the big brags of IVA is,that its average non-indus- trial consumer uses twice as much electricity as the U. s. average, and the rates are only half as high as the U. s. average. The IVA yardstick has been used in many communities to force down rates.
 IVA also is charged with flood control. It has 19 water storage dams in operation.
 In dry weather these dams are opened to release water at rate that will maintain nine-foot chan mel depth for navigation on the rivers lower $50 miles. Ton-miles of traffic on the river have been increased seven times over 1883. TWAS chemical plant at Muscle Shoals has turned out quarter of a million tons of fertilizer. shipped to 31,0OO farms in 28 states.
 IVA has promoted forestry, plant ing 152,000,000 seedlings to sustain yield on timber lands which cover half the valley. It has done re- search on minerals in this area, turning up firebrick clay that for merly had to be imported from In- dia. It has experimented with new uses of electricity on farms, new farm machinery. new methods of food processing.
 The whole list adds up to an im- posing record which the IVA en- emies = who are out to stop the spread of the authority" idea to other parts of the country-will have a hard time shouting down.