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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Aug. 23, 1957)
TOTJRTEEK MEDrORD (OBEGOlf) MAIL TRIBUNE r rid ay. August 23, 19S7 Congress Quietly Ends One of Biggest Federal Subsidy Programs By A. ROBERT SMITH Mil Tribune Corespondent Washington Congress last week quietly ended one of the biggest federal subsidy programs ever launch ed, and from which the pri vitc electric utility indus try w s s the chief benefici ary. Not one con gressman rose in protest the fast tax write-off. program, mostly, it appeared, because tax write-off had become almost a dirty word in ihe Washington lexicon during this session of Congress which was marked by the hot Hells Canyon fight and the big economy drive. It was the fast tax write-off granted Idaho Power company in April which triggered off the loudest criticism of the subsidy program ev?r heard, much of it from such stalwart supporters of private enterprise as Sen. Harry F. Byrd (D-Va.). It also provoked an investigation by Sen. Estes Kefauver (D-Tenn.) and his anti monopoly subcommittee. And that tax write-off, probably more than anything, put the Hells Canyon bill successfully through the Senate before it was killed in the House Interior committee. The Hells Canyon battle this year was finally won by the pri vate utility industry, which had made it a principal target against federal dam building with the aid of extensive advertising cam paigns. The ads, appearing in national magazines, showed pic tures of the big Snake river gorge and asked the reader whether he thought taxpayers' dollars should be thrown into that canyon. The irony of it all now is that the Hells Canyon battle brought to light for the first time in an understandable way how many taxpayers' dollars were going into the private utility industry via the fast tax write-off pro gram, and which now has brough the subsidy to a quick end. From the start of the tax write-off program after the out break of the Korean conflict in 1950, the office of defense mobil ization issued 928 certificates to private power companies allow ing them to amortize their new capital investment in five years in order to cut their taxes imme diately. These certificates cov ered a plant expansion valued at S6.7 billion, of which $3,300, 178,000 was declared eligible for fast tax write-offs. Railroads ran second with $6.3 billion, fol lowed by primary metals (mostly steel) $5.7 billion, oil and coal $3 billion and chemicals $2.9 billion. To the utility industry, which became America's fastest grow ing industry under this program, these write-offs represented "in terest free loans" (to use the term of the Federal Power com mission) amounting to nearly $1.5 billion. And, based on FPC methods of computing the total subsidy 'or benefit to the utili ties over the lifetime of the" new plant, it amounted to almost $5 billion. These figures have more mean ing when compared with the total federal investment in gov ernment power facilities up to this year about $5 billion, which covers the costs cf all northwest ' dams allocated to power, as well as TVA and other federal power projects. Most of this is repayable at 2Vi per cent interest. The total government invest ment in loans to rural electric co-ops also comes .to about $3 billion. This is repayable at 2 per cent. In short, the total subsidy to the private utilities under the tax write-off program in the past seven years almost matched the total subsidy for public power development over the past gen eration. Perhaps these related events of this summer in Washington could be properly recorded on the rim of Hells Canyon with a historical marker like those that adorn the fields at Gettysburg and Bull Run. It might say: The Battle of Halls. Canyon Here fell the defenders of a high federal dam, but only after exposing to fatal assault one of their attackers' main supply sources, fast tax write offs. For" the private utility army massed in this bitter campaign, Hells Canyon turn ed out to be a Pyrrhic victory. NEW AIR LINK Washington 0PI Miami will be linked directly to Europe for the first time by an American airline Oct. 21. President Eisen hower Thursday authorized Pan American Airways to operate a regular flight from the Florida city to Madrid. The route will link Miami; San Juan, Puerto Rico; Madrid and Rome. DRAMATIC SAVINGS SUNDAY Watch Sunday's Tribune 1 CAR COATS - 5fe5. fS'i? for school at A. Car Coats in every style and ' color imaginable. The new fall shades and colors are breathtaking. Your school wa rdrobe isn't complete without a car coet. We have the greatest selection ever for you to choose from. 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From in fants to college sizes . . 49 29 to .98 ANKLETS v 5 DYED TO MATCH JANTZEN SWEATERS Whot fun to be able to color coordinate your school outfits. These onklcts are perfect for your Jantzen sweaters and skirts. WATCH SALLY 9:30 P.M. FRIDAY FOR ANOTHER MANNAS BIG VALUE ITEM. ;i 1 i-3Bj MEDFORD MEDFORO
