Power Play

Saskatchewan's busy CCF Government was achieving socialism by capitalistic methods. Four months ago it took over the Dominion Electric Power, Ltd. (13 plants in Saskatchewan, seven in other western provinces) by buying control for $450,000. Last week Provincial Treasurer Clarence M. Fines and Natural Resources Minister Joseph L. Phelps revealed the rest of the power play:

P:The province had sold the seven plants outside Saskatchewan to a private buyer for $250,000 (5% down, balance in 60 days).

P:Next the Saskatchewan Government would buy up for $493,000 all outstanding preferred stock in the company. This would mean a sizable annual saving in federal taxes (last year the company paid $112,000) because under federal law companies which are 90% owned by a government are taxexempt.

Result: for a total outlay of $693,000, Saskatchewan has acquired a tax-free power company which last year showed net profits of $334,000 and which had 400 miles of line and some 8,000 customers. Probable next step: provincial purchase of another private power company, in the province, Saskatchewan's Prairie Power Co., Ltd.

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