December 1943, but only six Coulee units were completed and two additional 75,000 kW generators borrowed from Shasta Dam for an actual total of 1,326,400 kW by 1944.

The BPA transmission system expanded rapidly from 142.3 circuit miles of line on July 1, 1940 to 1,176.8 miles a year later and 2,518 miles by mid-1944. Construction fell off sharply in 1944. The War thus accelerated and then decelerated the generator and transmission program. The seventh Coulee unit finally came on line in October 1947.

Throughout World War II the President and Congress devoted considerable attention to post-war planning and enactment of laws to ease the transition to a peacetime economy. In his State of the Union Address on January 7, 1943, Roosevelt called for victory in war, then victory in peace.

One Pacific Northwest effort in 1943 was the search for storage in Columbia River headwaters to better regulate streamflow for greater downstream power production. It was hoped this could be done with minimum labor and materials. A proposal to raise the level of Flathead Lake was abandoned, after strong local opposition. A major complaint of Montana people was that they had not been consulted. When their advice was asked, they formed a citizen's group which vigorously campaigned for building the Hungry Horse Dam, resulting in the Hungry Horse Project Act of June 5, 1944.

May 22, 1943 the President directed all Federal agencies to prepare plans for postwar public works to take up the anticipated slack in employment when the war ended. BPA's proposal included $26 million worth of war-deferred transmission facilities plus $25 million for new facilities. The paperwork was to be ready for bid calling on demobilization day.

One result of this post-war planning effort was the Flood Control Act of 1944, which adopted the Pick-Sloan plan for developing the Missouri River. The plan represented a compromise between advocates of a Missouri Valley Authority on the one hand and wishes of private utilities on the other. The Act made the preference clause and other key Bonneville Project Act policies applicable to all Corps of Engineers hydroelectric projects nationwide. The companion River and Harbor Act of 1945 authorized McNary, Ice Harbor, Lower Monumental, Little Goose, and Lower Granite Dams. It included a proviso for BPA to market their power output.

Partly as a result of the adverse public reaction to the Flathead Lake proposal, BPA established the Bonneville Regional Advisory Council. Initially it had 20 members

who first met March 31, 1944, and next June 5-6, 1944. An assignment for the first meeting was to review BPA's justpublished report, "Pacific Northwest Opportunities." It emphasized possible postwar industrial development.

Not to be confused with the Council, the Bonneville Advisory Board created under the Bonneville Project Act operated from 1937 to 1946. It was replaced in 1946 by the Columbia Basin Inter-Agency Committee which met until 1966 and was replaced by the Pacific Northwest River Basins Commission authorized under the Water Resources Planning Act of 1965.

BPA Administrator Raver called 11 meetings of the Bonneville Advisory Board from 1939 to 1946; four of them in 1943. In 1943 and 1944 the Board actively supported upstream storage for increased power production, but that program had to wait for the postwar period. Raver valued and heeded the advice of the Board and other groups.

The war's progress affected BPA. The Stalingrad turning point in late 1942 and early 1943 also marked the shift in emphasis in the United States from building new manufacturing plants to increasing production at existing plants. BPA peak employment of over 4,000 in 1942 dropped to 2,000 in 1943 as the transmission construction program slackened and the draft accelerated.

The Allies went on the offensive in 1944, storming the Normandy beaches in Europe on June 6. The Battle of the Philippine Sea June 19-20 crippled the Japanese navy. Throughout 1944 and most of 1945 Allied Forces captured Japanese islands and recaptured the Philippines, Wake, and Guam. Italy had surrendered in September 1943, Germany surrendered May 7, 1945, and Japan September 2, 1945.

Despite some curtailment in 1943, BPA defense loads had peaked in 1944. Generation for BPA in fiscal year 1944 reached 9.2 Billion kWh, dropped to 9.0 billion in fiscal year 1945, and plummeted to 6.2 billion kWh for the year ending June 30, 1946. BPA's post-war program focused on industrial development. Meanwhile demobilization caused sharp reductions in power loads as aluminum plants curtailed 460,000 kW.

By June 30, 1945 BPA had a system of 2,736.8 circuit miles of transmission lines, and 55 substations. The war had enabled BPA to achieve 10 years of normal peacetime load growth in 5 years. Articles that had criticized building power resources to serve jackrabbits were replaced by those praising BPA's contribution to the war effort. But the praise was short lived, and wartime contributions quickly forgotten. The post-war period would be stormy for BPA.

17. WINNING THE WAR OF

PRODUCTION

To American production, without which this war would have been lost.

-Joseph Stalin

Toast at Tehran

Nov. 28-Dec. 1, 1943

Early advocates of Columbia River development had a vision of power for industry. Their reports, testimony to Congress, and speeches in the Congress foresaw industrial development. Portland's Chamber of Commerce wanted new industry and payrolls as the primary reason for building Bonneville Dam. When the National Power Policy Committee drafted the Bonneville Project Act, the lawyers copied much of the language from the TVA Act, including the phrase "...sale to and use by industry shall be a secondary purpose..." Someone from the Pacific Northwest objected. It was deleted on the argument that the Pacific Northwest wanted to welcome industry and not to discourage it.

This chapter focuses on the beginnings of BPA's industrial sales policy from 1937 to 1953, and experience and relationships with large, direct service industries. The industrial sales policy evolved from a background of two changing perspectives. The oldest is England's industrial revolution. The second perspective is the age of electricity. A later chapter will carry forward BPA's relationships with industry through the 1953-1979 period.

The expression "industrial revolution" appeared in the writings of the Frenchman Jerome Adolphe Blanqui in 1837. It did not catch on, however, until popularized by the English sociologist and economist Arnold Toynbee (18521883), father of the more famous historian of the same name. The father wrote in 1880 of the industrial revolution to describe England's economic development during the period from 1760 to 1840. The American economic historians Charles and Mary Beard adopted and expanded the concept.

They all emphasized the flood of inventions in textiles, iron and steel, the steam engine, coal as a source of power, the factory system displacing the domestic system of craftsmen and cottage workers, the development of new economic institutions, and a host of social problems. They viewed the industrial revolution more as a process of evolution from an agrarian to an industrial economy. The English writers Oliver Goldsmith (1728-1774) and Charles Dickens (1812-1870) bracketed this period and recorded the

wrenching social turmoil, the enclosure movement and its upheaval of rural life, the subjugation of workers, the evils of child labor, and the poverty and drab existence in the congested cities.

Other countries industrialized their economies more recently, the eastern United States following England by about one hundred years. The Pacific Northwest, delayed another one hundred years, experienced a modest shift from agriculture, fishing, forestry, and mining to industrialism in the 1940-1970 period primarily because of the availability of Columbia River power, the demands of World War II, and BPA's early policy of seeking economic development.

Probably the main lesson from the experience of the industrialized nations is "the later the better." That is, each nation learned to avoid some of the problems that England experienced. Each succeeding industrialized nation began with better machinery and better institutions to provide effective competition to the older industrialized nations. Economic historians identify among the causes of World War I and II the world-wide competitive challenge by the upstart, newly industrialized nations in the markets long monopolized by Great Britain.

In the Pacific Northwest the concern focused on how to get more industrial jobs without the smoke stack ugliness and brutalizing conditions of the older industrial areas. The concern was expressed in the mid-1930s with respect to preservation of the scenic values of the Columbia River Gorge, and to avoidance of industries that would pollute. Viewed in the perspective of the industrial revolution, the Pacific Northwest has substantially succeeded in achieving a modest level and diversity of industrialism without the evils of industrial slums.

Power was the key to England's industrial revolution. The Romans introduced water wheels to Britain. For centuries the British used charcoal to smelt and forge iron. The discovery of coal brought a double shift in technology, first improved smelting of iron and steel, and second the use of boilers to produce steam. One motivation for developing the steam engine was to pump water out of the coal mines. The development of the steam engine triggered a long series of mechanical improvements. England's industrial revolution was characterized by coal as the power fuel and the steam engine as the motive power.

A new perspective and the entire new group of electrical industries became possible with the beginning of the age of electricity in the 1880's.

The early electric utilities started as "light" companies,

with virtually no industrial load. Most large industries generated their own electric power. For 30 years, from 1882 to 1912, industries in the U.S. generated more electricity than was produced by electric utilities. After 1912 the economics of scale of large central generating stations usually made it more advantageous for industries to buy electricity from the utilities. Electric companies changed their names to include "power" as well as light. By 1917 industries used 54 percent of all electric utility output and the figure hovered around 50 percent for many years. Currently, the USSR devotes about 75 percent of its electrical production to industry. A world-wide 1972 survey shows 70

Shipbuilding in the Pacific Northwest was a major war contribution. Upper photo shows a ship's bow being assembled, upside down. Lower photo shows bridge structure being hoisted into a new ship.