Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1905-05-19
WISCONSIN'S WATER POWER

Senator Wipperman's bill granting
exclusive privileges to private parties
for the development of the water
power Of the Wisconsin river has
brought actively to the attention OF
the people of the state the vast i'm
portance not only Of the water power
of this one river but also that Of all
the rivers Of the state capable OF
producing power. 1t seems already to
have performed some good in that 1t
was partly responsible for the COVER
nor's message relative to the granting
Of water power privileges. 1t seems
now to be the accepted principle that
the recipients of these legislative gifts
be held to strict account by the state.
The real problem raised is Of greater
significance, however, than the
governors message would indicate.
There are Ia the state some four or
five complete water systems, each
capable of producing an enormous
amount of power, the potential energy
of each, however, is capable Of being
greatly Increased, perhaps doubled,
trebled or even quadrupled, by the
construction OF artificial reservoirs 10
aid and supplant the natural ones.
This would entail considerable
amount Of work and the investment
fxf tsAr nf
returns to investors and to the state
would be enormous on account OF the
impetus TO manufacturing which the
creation OF such an amount OF power
would give.
Granting the wisdom of thoroughly
developing these water systems, the
question arises as to how and by
whom the work should be undertaken.
1t would be in the highest degree an
undertaking of distinctiveiy public
benefit and interest, promoting
directly the prosperity OF entire
communities and Indirectly that OF
the whole state. But however much
desired it might be for the state to
undertake this development for all
the people the constitution will not
permit 1t. The alternative remains
10 entruSt the work TO the hands of
private parties.
From the very nature OF the scheme
Of development private, local, or
otherwise disinterested party as any
one other than the state must be,
engaging in this work has placed in
its power the welfare, individual and
collective. OF the entire region which
Is served by the Improvement. Col
lectively, because every industry
using the water power might be
badly crippled by improper or mali
cious regulation of the flow; individ-
ually, because by means Of discrmina-
tiOns and rebates in tolls certain
establishments might be preferred at
the expense OF others. After the
construction of the suitable reservoirs
the developing parties have only to
regulate the flow from them and col
lect tolls for the use Of the water
supplied.
The question of charges or tolls is
all important. A private company
undertaking this work would be
entitled to a reasonable return on the
capital invested, but there would be
more ways than one Of making unrea-
sonable and extortionate returns
appear reasonable. The methods of
high finance have been SO well aired
In the past that the mere possibility
Of manipulation through subsidiary
and allied companies, stock imitation,
high salaries for experts and officials
should In itself give warning of the
need Of caution.
On the side of the charges them
selves there would he wide range
for manipulation. The attractive
feature OF water power is it's cheap
ness In comparison with steam power,
and 1t Is SO much cheaper that a
substantial difference in cost Of
production exists between them
Possible higher transportation charges
on raw and finished products and the
Inconvenience which remoteneSs
from industrial centers may occasion
tend to reduce that difference, but a
considerable margin for manipulation
remains. The user Of water power
who removes his plant to, or establishes
1t In, an out-of-the-way place expects
thereby to gain some competitive
advantage over others In the same
Industry using steam power. The
interference with his business which
a company regulating his water
supply might cause could seriously
endanger his interests.
With such immense power posSibi-
lities as Wisconsin possesses there
seems to be no good reason why
manufacturing interests of all kinds
should not be attracted to the state.
But In order that they may have full
confidence they must be assured that
no outside parties will gain control
over their interests as the developing
company here contemplated might.
Every aspect of the case seems to
demand that the state retain the
most complete supervision over this