UTILITIES: Example from Eugene

The U.S. got an example last week of what President Eisenhower meant by his new policy of partnership between the Federal Government and local public or private utility companies. Into Congress went two bills authorizing a deal between the U.S. Army Corps of Engineers and the city of Eugene, Ore. (pop. 36,000) to build a $34.5 million power and flood-control project on the state's McKenzie River. For its share, the Government plans to build a $23 million flood-control dam on the McKenzie. In turn, Eugene's city-owned power company will spend $10.5 million on a powerhouse at the dam site and a smaller reregulating dam downstream, will also put up $1,000,000 towards the cost of the Government's dam.

Benefits to Eugene from the plan: more power for the local company and the first real flood-control system for the swift-flowing McKenzie River. Benefits to the Government: a chance to provide both power and flood control for an important section of the U.S. without footing the entire bill.