Power & Politics

The danger of creeping socialism did not "end with a change in national administrations in 1952. The advocates of socialization have insinuated themselves to some extent into both major political parties. Hence the threat of governmental encroachment continues for our industry regardless of which party is in power." With these words, Harllee Branch Jr., president of the Edison Electric Institute and boss of the big Georgia Power Co., last week warned 650 private power men meeting at Boca Raton, Fla. of the "longstanding" threat of socialization of the U.S. private power industry.

While the Eisenhower Administration undoubtedly has a genuine concern for the problems of U.S. business, said Branch, "nevertheless even in this Administration . . . socialized power has made some further inroads." Examples:

Public development of power resources at Niagara Falls, N.Y., which a Senate committee recently approved, even though "private enterprise has offered to fully develop the waterway, pay all local and federal taxes, supply construction funds, and make the power available to customers throughout the entire service area without favor or discrimination."

P: The Dixon-Yates "fiasco," which "the Government initiated . . . and defended for some 19 months and then abandoned and repudiated in the face of political attack by the partisans of socialized power, even though the preceding Administration had executed two similar contracts which were not as advantageous."

P:The Eisenhower partnership program for joint public and private power projects, which "has been permitted to drag," despite willingness by private power to help supply $300 million to $500 million annually for new facilities.

Concluded Branch: while there have been some "favorable developments," e.g., Idaho Power Co.'s Hell's Canyon project, Alabama Power Co.'s Coosa River project, "the danger is that while counting our blessings, we may minimize the threats that confront us from a dozen directions."

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