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Scarcity, High Costs, Will Be
Fruits of Ike's Power Policy ♦ The Federal power program, which broke the bottleneck of scarce and costly electric power during the Roosevelt and Tru man Administrations, is in the process of liquidation by the Re publicans, according to the ECONOMIC OUTLOOK, publica tion of the CIO Department of Education and Research. "If the Eisenhower Administra-* tion is successful in dismantling the federal power program" the depart ment warns in the ECONOMIC OUT LOOK, "the American people will be confronted with an inadequate supply of high-cost electric power." A blueprint for getting the gov ernment out of the power business and giving it to private enterprise was outlined by former President Hoover in April 1953, the OUTLOOK recalls. The blueprint has been followed pretty closely, the maintains. The first session of the 83rd Congress killed a TVA steam plant, refused to authorize new hydro dams, and slowed down work cn dams under construction. The Department ofllhe Interior has re versed past policies, moving to give away the best dam sites and to negotiate long-term sales contracts OUTLOOK . with private industry over the pro tests of REA co-operatives. "The consequences of the Eisen howed-Hoover policy, if permitted to go on, will be both economic and warns, i j political," the OUTLOOK "They include: 1. "Restoration of overwhelming control over electric power resources to the private monopoly companies which have always sought high prof its from a scarcity of power, refusing to expand until customers are lined up and waiting for energy. This will handicap economic development and increase the difficulty of maintain ing an expanding economy. 2. "A freeze on the development of the great electro-process industries, which produce such defense-vital ma terials as titanium, aluminum, mag nesium and phosphate fertilizer need ed to conserve our basic soil re sources. 3. "Increased cost of extracting and using lower grade metal ores, in cluding iron. (It will take 70 to 80 kilowatt hours of electricity to ex tract and concentrate a ton of I.ake Superior low-grade ore, according to the President's Materials Policy Com mission.) 4. "An end to great regional de velopments like the Bonneville area in Oregon and the Tennessee Valley —which are already grinding to a stop—because the basic, revenue-pro viding power sites are being given away to private corporations. 5. "Increasing electric rates for homes and farms, a consequent freeze in electric power use, a slow er growth in the appliance indus tries and a loss in living standards." The OUTLOOK says the Republi cans and the private power companies are trying to confuse the entire issue with cries of "creeping socialism." TIDELANDS OIL—The oil corporations grabbed over $300 billion worth of oil and other resources off the coasts of four states, as a result of the Eisenhower administration's giving away federal rights to the tidelands. Revenues from these lands could have gone to aid our ailing school system. PUBLIC POWER—The $560 million Hells Canyon project in Idaho was dropped. Private companies will provide half the power, at higher cost, without flood control. Power from exist ing dams is being turned over to private companies and plans are afoot to sell all government projects to private companies. "This is thievery by legislation," said Senator Morse of Oregon. ATOMIC ENERGY—-The GOP Congress is considering an Atomic Energy Commission plan to turn over ownership and development of atomic energy facilities to private corporations. At stake are $10 billion in public funds already invested, plus the entire future of an industry that may become the largest in THE GIVE AWAY the country. PUBLIC INDUSTRIES--—Already up for sale are the govern ment's $550 million synthetic rubber industry, a $75 million experimental oil plant, and "minor" projects. PUBLIC LANDS—Several bills have been introduced by thp GOP which would hand over 458 million acres of federally owned lands, containing an estimated one trillion dollars worth of lumber, minerals, grazing acreage, coal and oil shale re sources to private interests, TAX MONEY—Tax reductions in the billions (permitting ^apid write-offs on plants) have been given to companies to build new plants, mainly in non-union areas. The "old" plants in unionized areas are the first to close in a recession. In addition, the excess profits tax has been eliminated, and reduced taxes on dividends will shortly go into effect. "Socialism isn't the issue," it in sists. 'Neither is it any other ism..' "The issue before the* American people is clear and simple: Are we going to have an adequate and grow ing supply of electric power at the lowest possible cost? "The practical result of the Re publican policy is likewise clear: If the Eisenhower Administration is successful in dismantling the federal government's power pro gram that was built up over- the past 25 years, the American people will be confronted with an inade ^gljg CaRVOR Had IdallO _ _ # . 0 V 3 l Ifl ? 5 I quate supply of high-cost electric power." . WASHINGTON, D. C. — Idaho p ower company as recent as early in 1951 "clearly endorsed" and sought to buy power from the proposed fed eral dam before it "had a change of life," Michael W. Straus, former U. i g. reclamation commission, said here j recently. He made his statement while testi fying at the power commission hear ings on Idaho Power company's ap plication to build three dams in Hells Canyon region of the Snake River | between Idaho and Oregon. Straus sought to show that the company approved the federal project early in 1951—then suddenly decided j to build dams itself,—LSW REGIS STER. ■ i DEMAND THE UNION LABEL ! -ter. ai j WE PLANNED A BIG CAM HERE TO PROVIDE INv FOR EXPANDING -*• ' AN POWER NEEDS a. ^ V vf BUT NOW OUR JAvd little dam £ J WILL BLOCK \ YOUR PLANS HEITSCAKYON h 111 1 C « U Î i'V li * vw 41 \ c. t-y\ ' i V/i v\ -U / *■ .VO'* 4 ;4S [I. if <r Economic Outlook, CIO. I960.? I 1955 1950 1945 1930 1935 1940 I Electric Rates r 1 I ^ i. / •/ •5 « * I i " RIG RATE STRUCTURES AHO BOOK KttPlNG f, / PUBLIC 'YARDSTICK" HYDRO-ELECTRIC PLANTS BUILT I pv ' STOP NEW DAMS AN P PLANTS I J POWER RATE STRUCTURES AND BOOK-KEEPING DEBUNKED fSELL OR LEASE 'M PUBLIC POWER TO PRIVATE companies I BUILD PRIVATE POWER _ MONOPOLY I U W/, ( ! POWER MONOPOLY BROKEN I Economic Outlook, CIO. Labor's Interest in Hells Canyon Ignored WASHINGTON, D. C.— Federal Power Commission out of the hearing record on the broad interests labor and of a high federal dam versus the Snake River. FPC hearing examiner William J. Costello has ordered struck from the record the economic exhibits Presi dent Evan W. Weston of the Wash ington State Federation of Labor tried to insert, showing how increas ing joblessness in the Pacific North west accentuates labor's interest in the issue. Costello previously similary up held power company lawyers' ef to strike from the record testimony by other witnesses show ing the irrigation and other bene fits that would flow from a high forts federal dam at Hells Canyon. Costello has tried to keep the hear ings confined to the narrow issue of the firm's application—production of power from its proposed series of Bensonized" Dairy Prices Tumble Wisconsin farm InCOHie u Due largely to a sharp decline in prices received for dairy prod ucts, the buying power of the farmer's dollar took a big tumble in Wisconsin during April, and hit its lowest level since October of 1941. The purchasing power of the farm dollar, the ratio of prices paid by farmers to prices received, during April was more than five per cent below a year earlier, ac cording to the Federal-State Crop Reporting Service for Wisconsin. As a whole, Wisconsin farm prod uct prices were seven per cent be low the same month in 1953, while prices paid by farmers had dropped less than two per cent. The preliminary estimate of prices received for milk by Wis consin farmers in April shows an average of $3.05 a hundred pounds for milk for all uses, which is 25 cents below the March average and 42 cents under the same month a year earlier.—FARMERS UNION HERALD. In colonial days in Boston, a candi date for governor of Massachusetts, had. to be a "Christian worth 1,000 pounds." (LNS)—The Idaho Power Co. and officials are succeeding in knocking Hells Canyon testimony showing other groups have in the issue three low private utility dams on i three low-head, comparatively low j power output dams, I WANT FULL STUDY The opponents of the application, headed by the National Hells Canyon Association of which Weston is di rector and eight Washington state public utility districts, want all as pects to be considered. Weston tried to insert economic charts showing labor's interest in low-cost public record but the exhibits were strick en on power into the technicalities. The charts showed Pacific North worse than west unemployment is the nation's as a whole, and seasonal joblessness there is much worse each year when logging drops in the win One chart showed that total un employment in the Pacific North west rose 41 per cent-from 137,000 to 193,900—from February 1953 to February 1954. * | Idaho's joblessness jumped most, 80 per cent; Washington state's, 37 j per cent; Oregon's, 31 per cent. By February 1954 Washington had 85,- i 700 jobless, Oregon had 72,000 out | of work, and Idaho had 36,200 in the same predicament. ! Other tables showed that Pacific . JOBLESSNESS GROWS Northwest joblessness has been grow- : ing with the decline of the lumber industry there; that most of the booming population of the area is going into industries depending on plenty of low-cost power-chemicals and allied products, aircraft, atomic energy, and metals, and industries serving or dependent on these. THE TAKE AWAY FIVE MILLION JOBS—The Republican "recession" has al ready cost five million workers their jobs. The administration says there is nothing to worry about. Big Business wants a limited depression. It aims to use it as a weapon to weaken unions, cut wages, eliminate small business competitors. HOUSING—The low-cost federal housing program has been killed. The administration asked for only 35,000 new apart ments, and Congress may eliminate even that. The original inadequate program called for 175,000 units. Rent control is ended. Even those who can afford the down payment on a house find mortgage interest rates upped, HEALTH, EDUCATION AND WELFARE—The federal gov trnment now spends more money on tombstones than on heart disease research. Medical research and hospital construction wtre cut to the bone. Federal aid to education was blocked com- • pletely. SOCIAL SECURITY STEAL—Bills are in the hopper to rob the $18 billion social security fund, end federal supervision of Unemployment Insurance, and carry out a U. S. Chamber of Commerce plan to turn Social Security into a "dole, LABOR AND PROTECTIVE LAWS—Labor Department funds have been slashed brutally, hitting at enforcement of min imum wage, child labor laws, and safety laws. An FEPC to prevent discrimination in hiring Negro and minority workers was buried by Ike. FARMERS STANDARDS—Price supports for farmers are being cut by the Republicans at a time when farmers ready in a serious depression. Rural Electric Co-operatives threatened with loss of their rights to public power. The Soil Conservation Service has been crippled by budget cuts._March Conservation Service has been crippled by budcret cuts — MARCH OF LABOR. ' * f are al are % Weston said "Labor's primary in terest (in the power question) is in the steady growth of employment and payrolls in the Pacific North west." Asked if the Pacific Northwest provide enough jobs the j economy can if the small dams are built on Snake River, between Idaho and Oregon, by a private power firm, he answered "No." To meet some of the problem* facing labor and industry . . , abundant low cost power is required." Weston testified that serious un employment in the area is due to population growing faster than for the nation as a whole, and that in dustry has not been growing fast enough to provide new jobs. INDUSTRY MUST EXPAND "Not only must Pacific Northwest industry expand, but it must expand j faster than industry in the United I States a s a whole. In my judgment, this requires abundant new supplies of \°^ C ° st P ower -" Asked what remedy he proposes for a ' e * Ion , so h ^ vll >' dependent u P on th « Product (lumber) m de chmng demand. . Weston said : . The <^n should develop other >n<l^tnes which have more promising * rovvtl ! P^pects. The Pacific North w< f- ^wever is handicapped in its industrial ,development by an un favorable freight rate picture In the " ears s,Dce , 1 u fre, * ht ,ates > nt ° eastern markets have-gone up about 70 per cent making it very difficult for western products to compete . . . "Even though the Pacific North west is at a disadvantage on freight rates the region has a very great advantage over other parts of the country . . . our substantial hydro electric potential . . . we must en courage and stimulate industries which require abundant low-cost power . .