Page images
PDF
EPUB

has been steadily improved, until it now comprises 1,400 separate items collected from 55 Government departments, 116 voluntary agencies, and 35 technical and trade sources. Its paid subscription list has increased more than 50 per cent in the past year.

WASTES DUE TO SEASONAL CONSTRUCTION

A second committee was named by me from the unemployment conference on seasonal operation in the construction industries, which carried on extensive research into this problem and made its report last July, just after the close of the fiscal year now under review. The report showed conclusively that custom, not climate, is mainly responsible for the seasonal ups and downs in building, and that these evils are largely unnecessary and can be eliminated. For most types of construction it is now possible to build the year round in all parts of the United States. The elimination of these wastes would strengthen the entire business structure, for construction is the balance wheel of American industry. The value of yearly construction in the United States is more than $5,000,000,000. If building falls off, there is always a slackening in many other lines of industry, resulting in unemployment, decreased purchasing power of employees, and further depression.

Neither of the reports of these two committees included any rec-i ommendation as to extension of governmental activities further than that there should be strengthening of the economic and physical research now being carried on by the department. It was felt that, a stimulation of thought and organization in the local communities: was more consonant with our national conception of individual and community initiative. Important action has now been taken in many communities in changing leasing dates and other devices to induce more regularity to construction.

BITUMINOUS COAL INDUSTRY

Investigation made early in this administration, published in various departmental documents, revealed the high instability of the bituminous coal industry and the fact that it was functioning at great national loss. Committees of important men representing various phases of the problem were appointed and systematic cooperation has been set up in remedy. Due to the war and to periods of profiteering, far too many mines had been developed and placed in operation. Practically the whole of these mines had continued to operate on a basis of partial weekly employment. There were ap proximately 30 per cent too many mines engaged in the business and holding to themselves 30 per cent more labor than would be necessary to produce the nation's coal if they were continuously employed

One result of this intermittent employment is that a large propor tion of the workers, although employed at a very high minimum daily wage, did not receive a sufficient annual employment to main tain a reasonable standard of living. Thus there grew out of this vicious cycle constant incitement to labor difficulties,

Investigation showed clearly that the primary remedies needed were (a) sufficient transportation facilities, because car shortages resulted in increase of prices, profiteering, and stimulus to the main tenance of high-cost mines; (b) the reduction of the seasonal chai acter of the industry by the summer storage of coal by the larger Commercial and industrial users: and (c) a period of industrial peace so that by avoiding strikes the subsequent profiteering would disappear and thus the fly-by-night and high cost mines lose their support: in other words, the restoration of real competitive condi Los Through cooperation of trade associations of the principal dustrial consumers. through chambers of commerce and pub se unities a large amount of regular summer storays had Through the fine cooperation of the railwaye greater equip mad terzumal facilities have been provided and car shortage ha

gely eliminated. Through cooperation by the departsuana withi the unorized operators and with the leaders of the 11 ted Mix Workers a long term agreement the resultered vorm. We also sure maustrial peace in the zucnistry. The Geng Tessay, de beve I IL & Ereat measure beet attained. Hoe v & ** zor if economic waste car of Turan mes g

[ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][merged small]

war. The gradual elimination of the high-cost and fly-by-night mines is bringing about a greater degree of concentration of labor upon a smaller number of mines, the increase of days of employment per annum, and thus a larger annual return to the workers. The inherent risks in the industry will be decreased because the efficient and stable operator will no longer be subjected to the type of competition that comes from those mines that exist only to take advantage of profiteering periods. No better example of cooperation to secure the elimination of national waste can be presented. The past year, as compared to the year 1920, shows a saving to the consumer of about $1,000,000,000, which must be reflected in decreasing costs of production in every avenue of industry and commerce. INTERCONNECTION OF ELECTRIC POWER AND LIGHTING SYSTEMS

In October, 1923, with the approval of the President, I called a conference of the representatives of the State utility commissions of the 11 States from Maine to Maryland to consider what cooperative steps the Federal and State authorities could properly take to promote interconnection of power systems in those States. At this conference I outlined the problem in the following terms:

The

This conference is not conceived as more Government in business. The public authorities are already deeply in the power business through many forms of regulation and a very large measure of control of power sources. thought here is that coordination between public authorities and industries may secure further consummation of a great advance in the development of a great service to the public.

The reason and need for this discussion are simply that engineering science has brought us to the threshhold of a new era in the development of electric power. This era promises great reductions in power cost and wide expansion of its use. Fundamentally, this new stage in progress is due to the perfection of high voltage, longer transmission, and more perfect mechanical development in generation of power. We can now undertake the cheaper sources of power from water sources further afield, such as the St. Lawrence, and cheaper generation from coal through larger and more favorably placed coal generation plants. We can secure great economies in distribution through the interconnection of load between systems, for thus we secure a reduction of the amount of reserve equipment, a better average load factor through pooling the effect of day and seasonal variations, together with wider diversi fication of use by increased industrial consumption. We can assure more se curity in the power supply from the effect of coal strikes and from transportstion interruptions.

All this means the liquidity of power over whole groups of States. At once power distribution spreads across State lines and into diverse legal jurisdic tions. We are, therefore, confronted not only with problems of the coordination in the industries of their engineering, financial, and ownership problems, but also with new legal problems in State rights and Federal relations to power distribution.

This superdevelopment of great areas of cheaper power has been dramatized by those less familiar with the problem as the construction of great power highways traversing several States into which we should pour great streams of high voltages from great giant water power or central steam stations to be distributed to the public utilities and other large users along the lines of these great power streams. This, indeed, serves perhaps to picture what is meant by superpower development. As a matter of practical fact, however, the natural development of this situation lies, first, in the interconnection of power supplies between the existing great utility systems, and second, in common action for the erection of large units of production at advantageous points for the mutual supply of two or more of the present systems, and in the development of such great water powers as the St. Lawrence.

*

The savings in these 11 States resulting from a coordinated and fully developed electrical power system, would, by the time it could be erected, amount to a conservation of about 50,000,000 tons of coal per annum; an annual saving could be made of over $500,000,000 per annum at an additional capital outlay of about $1,250,000,000. In this area we are to-day producing something like 9,000,000 horsepower by direct steam and individual plant generation, a substantial part of which could be transferred to central generation with great economy.

With the crowding of our population in large areas we are faced with most difficult questions in the development of terminal facilities, the handling of traffic on our railways. There has been some electrification of transportation. The engineers who have made systematic superpower surveys are convinced that over 40 per cent of the mileage of the railways in this territory could be electrified at substantial economies in operation and with enlarged service if we should secure this greater and more economical power development. The indirect results both human and material are even more important than these figures I have given would imply. They take no account of vast losses to industry and commerce by the actual interruption and threatened interruption of fuel supplies to our several hundred thousand independent power units; no account of the relief to shippers from our already overburdened transportation and terminal facilities; no account of the increased production of our factories from cheaper power; no account of the larger extension of power into farm and home; no account of the reduction of physical labor and increase of comfort. To secure the rapid adoption of these demonstratedly possible results is of profound public importance. Every time we cheapen power and centralize its production we create new uses and we add security to production; we also increase the production; we eliminate waste; we decrease the burden of physical effort upon men. In sum, we increase the standards of living and comfort of all our people.

This conference recommended the formation of the Northeastern Superpower Committee under my chairmanship. The members of the committee have been designated by the governors of the various States representing their utilities commissions, together with representatives of the War Department, the Federal Power Commission, the United States Geological Survey, and the Department of ComAn engineering subcommittee, comprised of engineers of the various State utilities commissions and Federal engineers, brought in its report on April 14, 1924. This report deals comprehensively

with the problems above outlined and with the major technical steps necessary to bring about the technical development required. Already a number of these steps have been undertaken by the various power systems throughout this area.

Studies as to the legal problems involved in interconnection over State lines, having in mind the involved and varying forms of regulation in different States, are being made by a legal subcommittee with a view to determining some basis of uniformity in such regulation.

It would be desirable to cover other areas of the country in the same fashion.

REVISION OF FEDERAL AND STATE PURCHASING SPECIFICATIONS

Being aware from war experience that the faultiness of specifications used in Federal purchases resulted in great waste of public funds, I undertook early in the administration that the Department of Commerce should review these specifications. A division in the Bureau of Standards was created to develop standard specifications. to test materials for the proper determination of the basis of such specifications, and to secure the cooperation of manufacturers skilled in production. Subsequently the cooperation of the Bureau of the Budget was enlisted in the establishment of an interdepartmental committee, now known as the Federal Specifications Board, for the better development of this work under the leadership of the Department of Commerce. The multitude of specifications is being taken in hand, and the chemical and physical requirements of each article in question are being exhaustively examined in the laboratories of the Bureau of Standards. Beyond this, however, after we have arrived at a definite scientific background, the manufacturers in each branch are being brought into consultation to make sure that the industrial and commercial setting of a given specification is right from the point of view of the practical producer. In this manner a complete revision of Government specifications is under way, 210 such standard specifications having been prepared up to the present time.

The evident savings in goods purchased for Federal use under the revised specifications were so great, both in price and quality, that in the spring of 1923, at the request of some of the State governors. I called a conference of all State purchasing agents in Washington. At this conference it was requested that the activities of the division of specifications should be extended to cooperate with the State authorities in the unification and preparation of specifications for the commodities purchased by local governments and public in

« PreviousContinue »