(2 of 2)
Although public-power proponents have been trying to represent the power fight as a straight Democrat v. Republican affair, both parties have split, depending on individual projects. Oklahoma's Democratic Senator Robert S. Kerr is sponsor of the Markham Ferry Dam in his state, to be built by a state authority, aided by federal funds for flood control. A bill to allow the Alabama Power Co. to build dams on the Coosa River, sponsored by Democratic Senators Lister Hill and John Sparkman, was recently passed by Congress (TIME, June 28). On the other hand, Republican Tom Dewey wants new plants at Niagara Falls to be built by the state, whereas Congress and the Administration favor private company development.
The crux of the Republican policy is that only where local interests cannot assure development of natural resources should the Federal Government step in. For example, the Administration is pushing two huge projects, which fall under this heading: development of the Upper Colorado Basin and the Libby Dam on the Kootenai River in Montana.
The partnership policy is a logical outgrowth of the changes in the private utility industry since the 1920s and 1930s. It was overloaded with promoters of watered stock and failed to supply more power where it was needed. Investment in new facilities from 1926-32 averaged only around $600 million a year. But, today, private utilities are expanding at a purposeful rate. Since 1950, more than $2 billion a year has been invested. Now that private-power men are willing to do their share in meeting power needs, the Administration thinks that they should be given a chance to do so.