UTILITIES: Public v. Private

Last week the old controversy over public v. private ownership and operation of electric power plants produced important news in three widely separated parts of the U. S. Public utilitarians throughout the land watched with anxious interest these manifestations of a fundamental politico-economic struggle.

Georgia. Crisp County,* outraged at the rates charged by Georgia Power Co., had bonded itself for $1,250,000, built its own hydroelectric plant on the Flint River. It claimed to be the first county in the U. S. owning and operating its own power plant, to sell electricity more cheaply than anywhere else in the U. S. Threatened by public competition, Georgia Power Co. circulated notices in Cordele, county seat, that it was cutting its "energy charge" 50% (no cut in "service charge") in that town for all customers, that electricity bills would drop 35% which "will make our customers' rates approximately 25% less than those of persons buying power from any other agency [i. e. the public plant] in Crisp County."

The Crisp County Board of Trade exultantly spread full-page advertisements through the Atlanta newspapers, recording its success in forcing Georgia Power to cut rates, inviting citizens and manufacturers to move to Crisp County, "the home of Low Price Electric Current," declaring that other Georgia counties would "save millions of dollars" if the private company would accord them similar rate reductions.

Promptly the Georgia Public Service Commission cited the utility law against discrimination in favor of one community against another, ordered Georgia Power Co. to appear and show cause why its rates all over the State should not be reduced to a parity with those in Crisp County.

California. San Francisco's citizens in last week's primary (see p. 14) were asked to pass on a $68,115,000 bond issue to put the city into the power business. Of this total $63,545,000 would have been used to condemn and acquire Pacific Gas & Electric Co. and Great Western Power Co. of California and the balance spent in constructing new transmission lines, distributing equipment and a hydroelectric plant at Red Mountain Bar. The city's voters favored private ownership and operation, defeated the bond issue. One reason cited for the result: the municipal operation of San Francisco's trolley system has not been successful, produces deficits.

New York. Last week a special commission appointed by Governor Franklin Delano Roosevelt by authority of the Legislature began an inspection trip along the St. Lawrence River to determine the economic and technical feasibility of a huge State-owned and operated hydro-electric power system on that stream. Long have New York Democrats favored such a public power scheme on the St. Lawrence only to be thwarted by a Republican majority, pledged to private operation, in the Legislature. To keep the power issue out of this year's campaign Republicans consented to a non-partisan investigation of the Roosevelt proposal of State production and transmission of energy, private distribution under contracts that would reduce and regulate the retail price. Estimated cost of the State plan: $235,000,000 to $500,000,000.