5/19/2017 Heres How FDR Explained Making Electricity Public | Smart News | Smithsonian

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HeresHowFDRExplainedMakingElectricity
Public
Myfriends,mypolicyisasradicalastheConstitutionoftheUnited
States,hesaid
dam.jpg
TheWattsBarDam,oneofthedamsthatispartoftheTennesseeValleyAuthority.(Arthur
Rothstein/LibraryofCongress)

ByKatEschner
smithsonian.com
May18,20171:10PM

Whenelectricpowerfirststartedbecomingavailableinthe1890s,peopleboughtitfromsmallprivate
companiesthatspranguparoundthecountry.

Inthebeginning,eagertogetinonagoodthing,writestheUniversityofOregon,manypeoplestartedpower
companies.Intheabsenceofregulation,thingswerechaotic:individualcitiescouldhaveupto30power
companiesoperatingwithinthatonecity.Duringthistime,writestheuniversity,somepoliticianscalledfora
publiclyrunnetworkinordertobringsomeordertotheelectricutilityindustry.Butthebusinesscommunity
successfullylobbiedagainstgovernmentcontrol.

Theinitialchaosabatedaslargercompaniesboughtupsmallerpowercompaniesinthefirstdecadesofthe
twentiethcentury,theuniversitywrites.By1930,tenlargeholdingcompanies,whichwereheadedbymulti
millionaireslikeJohnD.RockefellerJr.,J.P.MorganJr.andSamuelInsullowned75percentoftheelectric
industry.

Thegridwassobigandcomplicated,theuniversitywrites,thatstateregulationwasimpossible.Butthingswere
comingtoahead:Despitemassiveadvertisingcampaignsbytheprivatepowerindustrycondemningpublic
ownershipassocialistic,publicopinionhadbeguntoshifttowardanegativeviewofthebigholding
companies.

Aseriesoffederalinvestigationsrevealedthatthepowercompanieswereoverchargingcustomersandpaying
littletax,whileengaginginfinancialfraud.FranklinDelanoRoosevelt,campaigningforpresidentin1932,said
hehadthesolutiontothisgrowingproblem:

TothepeopleofthecountryIhavebutoneansweronthissubject.JudgemebytheenemiesIhave
made.Judgemebytheselfishpurposesoftheseutilityleaderswhohavetalkedofradicalismwhile
theyweresellingwateredstocktothepeopleandusingourschoolstodeceivethecoming
generation.Myfriends,mypolicyisasradicalastheConstitutionoftheUnitedStates.Ipromise
youthis:NevershalltheFederalGovernmentpartwithitssovereigntyorwithitscontrolofits
powerresourceswhileI'mPresidentoftheUnitedStates.

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5/19/2017 Heres How FDR Explained Making Electricity Public | Smart News | Smithsonian
Rooseveltwasenvisoninganotherway,writesAndrewGlassforPolitico.HeaskedCongresstocreatea
corporationclothedwiththepowerofgovernmentbutpossessedoftheflexibilityandinitiativeofaprivate
enterprise.CongressrespondedwiththeTennesseeValleyAuthority,thenation'sfirstpubliclyownedpower
company.RooseveltsignedthebillcreatingtheTVAonthisdayin1933.

Ofcourse,theTVAwasmorethanapowercompany.ItwascreatedduringtheDepression,Glasswrites,and
theTennesseeValleywasinabadway.TheTVAwouldneedtoaddressmorethanelectricity:itwascreatedto
providefloodcontrol,assistwithagriculturalandeconomicdevelopment,maintainforestedlands,andmore.

WhenRooseveltsignedtheactthatcreatedtheTVA,Malariaremainedrampantinsome30percentofthe
population,Glasswrites.Householdincomesaveraged$640ayear.Muchofthelandhadbeenfarmedtoo
hardfortoolong,whicherodedanddepletedthesoil."

ButtheTVAbroughtnewlifetotheregion.TVAgeneratedelectricityattractedindustries,whichinturn
createdjobs,hewrites.Lightandmodernappliancesmadelifeeasierandfarmsmoreproductive.TheTVA
alsoworkedwithfarmerstodevelopfertilizersandimprovetheirlandaswellasthenaturalenvironment.

TheTVAremainsthelargestnationalpublicpowercompany,Glasswrites,servingnearly8.5million
customers.

AboutKatEschner

KatEschnerisafreelancejournalistbasedinTorontowhofocusesontechnology,cultureandethics.She
recentlygraduatedfromthemastersprograminjournalismatRyersonUniversity,wheresheservedaseditor
inchiefoftheSpring2016issueoftheRyersonReviewofJournalism.

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