The Birmingham age-herald., 1909-01-16

oped and is still in national or state con tro1.
 To give away, without conditions, this, one of the greatest of our resources, would be an act of folly. If we are guilty of 1t our children will be forced to pay aa annual return upon capitalization based upon the highest prices which the traf- fic will bear" They will find themselves face to face with powerful interests in- trenched behind the doctrine of vested rights and strengthened by every defense which money can buy and the ingenuity of able corporation lawyers can devise. Long before that time they may and very probably will have become a consolidated interest, controlled from the great finan- cial centers. dictatng the terms upon which the citizen can conduct his bust ness or earn his livelihood. and not amen able to the wholesome check of local opinion.
 Total Water Power.
 The total water power now in use by power plants in the United States Is esti- mated by the bureau of the census, and the geological survey as 53O0OOO horse power. Information collected bv the bn- reau or corporations shows that 13 large concerns, of which the General Electric company and the Westinghouse Electric and Manufacturing company are most i'm portant, now hold water power installa. tions and advantageous power sites aggre. gating about 1,O46,O GOO horsepower, where the control by these concerns is practi- cally admitted. This is a quantity equal to over 19 per cent of the total now in use. Further evidence of a very strong nature, as to additional intercorporate re- lations, furnished by the bureau, leads me to the conclusion that this total should be increased to "A per cent; and still other evidence, though less conclusive neverthe. less affords reasonable ground for en- larging this estimate by per cent addi- tonaI. In other words it is probable that these 13 concerns directly control devel- oped water power and advantageous power sites equal to more than 33 per cent of the total water power now in use.
 This astonishing consolidation has taken place practically within the last five years. The movement is still in it's in- fancy, and unless 1t is controlled the his- tory of the oil industry will be repeated in the hydro-electric power industry, with results far more oppressive and disastrous for the people. Ii is true that the great bulk of our potential water power is as yet undeveloped, but the sites which are now controlled by combinations are those which offer the greatest advantages and therefore hold a strategic position. This is certain to be strengthened by the in- creasing demand for power and the ex- tension of long distance electrical trans mission.
 It is, in my opinion, relatively unim- portant for us to know whether or not the promoters of this particular project are affiliated with any of the great corpor- ations. If we make an unconditional grant 10 this grantee, our control over it ceases He, or any purchaser from him, will be free to sell his rights to any one of them at pleasureI The time to attach condi- tlons and prevent monopoly is when grant Is made.
 Corporations Active.
 The great corporations are acting with foresight, singleness of purpose, and vigor to control the water powers of the coun- try. They pay no attention to state boundaries and are not interested in the constitutional law affecting navigable streams except as it affords what has been aptly called twilight zone' where they may find a convenient refuge from any regulation whatever by the public, whether through the national or the state governments. It is significant that they are opposing the control of water power on the Desplaines river by the state of Illinois with equal vigor and with like arguments to those with which they op- pose the national government pursuing the policy I advocate. Their attitude is the same with reference to their projects upon the mountain streams of the west, where the Jurisdiction of the federal government as the owner of the public lands and na- tional forests is not open to question. They are demanding legislation for un- conditional grants In perpetuity of land for reservoirs, conduits, power houses and transmission lines to replace the existing statute which authorizes the administra- tive officers of the government to impose conditions to protect the public when any permit is issued. Several bills for that purpose are now pending in both houses, among them the bill s. 6626, to subject lands owned or held by the United States to condemnation in the state courts, and the bills, H. R. 1856 and s. 2e6l re- spectively, to grant locations and rights of way for electric and other power pur- poses through the public lands and reser- vations of the United States. These bills were either drafted by representatives of the power companies, or are similar In effect to those thus drafted. On the other hand. the administration proposes that authority be given to issue power per mits for a term not to exceed 50 years, irrevocable except for breach of condi- tion This provision to prevent revoca- lion would remove the only valid ground of objection to the act of 1901. which ex- pressly makes all permits revocable at dls- cretion. The following amendment to au- thorize this in national forests was ln7 serted in last years agricultural appro- prlation bill:
 And hereafter permits for power plants within national forests may be made IT, revocable, except for breach of condi- tion. for such term, not exceeding oo years. as the Secretary of Agriculture may by regulation prescribe, and land covered by such permits issued in pur- suance of an application filed before en- try, location, or application. subsequent ly approved under the act of June H., 1906, shall in perpetuity remain subject to such permit and renewals thereof
 Favorable Bills.
 The representatives of the power com panies present in Washington during the last session agreed upon the bill apove