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The article discusses a state monopoly of electric light and power. In a previous issue of this quarterly the remarkable record of the government monopoly of electric light and power in Uruguay was discussed. It was demonstrated that in the period up to 1929 most of the dangers of state industry had been avoided. Although a tradition of competent civil service was lacking, public sector unit Usinas Electricas was able to attract and retain the services of a fine staff which aimed at maximum profits in much the same way as the management of a private monopoly would. Although the inefficiency of Uruguayan government employees had been notorious and the state-socialist party generally truckled to labor, nevertheless the Usinas Electricas were not overconsiderate of their laborers. The enterprise did not lag in adopting the latest improvements in equipment and developed a group of native engineers which maintained a high level of technical efficiency. Excessive Political pressure was avoided by the excellence of the basic laws and by the desire of the government to make the Usinas Electricas a model for the larger socialistic adventure in which it was engaged. The political stability of the period also aided greatly.