Transmitter Myers

Nebraska last week became the first state in the union to have all of its power companies in effect publicly owned. The last private-power company, Omaha's Nebraska Power Co., was bought by a group of Omaha citizens, thanks to the free but personally profitable enterprise of Utility-Promoter Guy C. Myers. But Nebraska Power Co. had not moved easily from its private moorings. In its glacier-slow passage from private to public hands, Nebraska Power split the citizens of Omaha into warring groups, at times chilled even the enthusiasm of Promoter Myers. But Promoter Myers does not stay chilled long.

The First Step. Balding, ebullient Mr. Myers, an old hand at putting utility companies together, first moved into Nebraska in 1934. Five years later he put through the deals which enabled Nebraska's "little TVA," which was built on PWA money, to buy 14 private power companies in the state (TIME, Jan. 9,1939).

In 1942 Fiscal Agent Myers spotted another Nebraska prospect. The SEC had ordered the dissolution of holding-company American Power & Light Co., which meant that it would have to sell its subsidiary Nebraska Power. Omaha's civic bigwigs, led by Henry Doorly, publisher of Omaha's World-Herald, and Nebraska Power officials (who hoped thus to keep their jobs) tried to buy. At first this looked easy. They had no trouble getting enabling legislation from the state legislature. But suddenly the power company opened fire on the legislation it had ostensibly supported.

Conservative Mr. Doorly rolled up his sleeves. He waded into his onetime friend James E. Davidson, president of Nebraska Power, dubbed the power-directors "highly subsidized dummies" of absentee landlords. Davidson's minions snapped back with the ridiculous charge that Doorly was a "Communist." Then Omaha's Mayor Dan B. Butler stepped in. He appointed a power commission, offered $40,680,000 for the property. Five days later this move was blocked by an injunction halting operations of the Mayor's commission. Myers watched these maneuvers with the experienced eye of an old campaigner, accustomed to the gouging & kneeing of utility fights. He cracked: "They'll get everything all bolixed up on this deal--then they'll send for Myers."

The Last Step. A few months ago, a third citizen group did. With a minimum of fuss, it turned up with $14,421,000 and bought control of Nebraska Power. This group will hold control only until the property can be transferred to Omaha or a public-power district. Omaha wondered: "Where'd they get the money?"

Guy Myers got it for them, chiefly from the investment bankers who had helped finance his other private-into-public-ownership deals in Nebraska. As security, the bankers received $15.6 million of short-term notes of the Loup River Public Power District of Nebraska, a part of the "little TVA." Loup River in turn got what it wanted, a contract to sell power to Nebraska Power. Myers did not forget himself. His fee: $500,000, of which he will clear some $150,000.

But the fight is not entirely over. Mayor Butler thinks that the city can save money by acquiring the company by condemnation, instead of from the Myers' group. Omaha will not vote on this until spring. But in any case Guy Myers has finished his work in Nebraska. There is nothing more to sell.

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