New-York tribune., 1909-01-16
VETOES BILL GRANTING
MONOPOLY.
Says Thirteen Great Corporations
Control One-thTd of COuHtTys
Water PO1CFT.
rFrnn, III. rrfnun. Rursau.1

they be sent to him. similar measures intro
duced by Senators Crane and Teller and Repre-
sentative MondeH. All these measures con-
fer on private individuals or corporations water
rights which the President maintains should he
granted for a term Of not more than fifty years
and only for fixed compensation The veto -
similar to that OF the Rainy River dam bill oe
last year. which ultimately became law only
because the company promised IN writing 70
submit to such conditions as might be imposed
by the Secretary Of War
The President explains the reasons for his
veto at length showing the remarkable extent
TO which the large corporations are acquiring
control of the water power Of the country and
predicting that unless checked the history OF
the oil monopoly will he repeated with the
hvdro-eIectric power industry" He asserts
that thirteen corporations. Of which the most
important are the General Electric Company
and the Westinghouse Electric and ManutaeI-
urIng Company. already have acquired controt
Of 33 per cent Of the developed water power OK
the country, practically within the last nNs
years, and says:
The great corporations are acting with fore
sight singleness of purpose and vigor 10 contreI
the water powers of the country They pay no
attention TO state boundaries and are not inter
ested in the constitutional law affecting naVlga-
bic streams except it affords what has Oeen
aptIy called "A twilight zone where they NAV
find convenient refuge from any regulation
national the state governments
THE PRESIDENTS MESSAGE
The text Of the message follows:
To the House of Representative
return herewith without my approval Hous+
bill 17707 to authorize William II. Standtsh to
construct a dam across James River. IN stone
Countv Mo and divert portion of it's waters
through tunnel into the said river again TO
create electric power My reasons Tor not sign
ing the bill
-rI,o ,,fv-as ,La grau+aa yalua DriVi-
lsge. which by its very nature IS monopoHStlc.
and does not contain the conditions essential 10
protect the public interest
sage OF February IS. 1908 IS Doc No S29l'
ways Commission 70 Congress. wrote on Nlarch N
13. 1905 the following letter 10 the Senate COM
mittee on Commerce:
NueE9qs bills Tan9g & gs,fT 8s fn rights 81 1903 e baT,
been introduced during the present session OF Con-
and some Of these have "a. an ia; snd
restriction OF water rights In the pubic mtefeSt
and would seem 20 warrant making a reascnaots
charge for the benefits conferred. those bills which
have come 70 my attention do d2 not 5sss 9g re.5ss
the public interests adeq!IaeIy N @ IlTs S 49, Co.
The effect Of sTantlnS 2riyGs,es sIen ] a. eessge a.
ferred by these 0iltf, as std sIIss m clurei IN
5sT stats Tevs Would be to give away properties
~ aTCrT7o,Is value Through lack Of foresight
have formed the habit Of granting without, com
pensation extremely valuable rights amounting %
inOnOpolies naviCable streams and on the pun
nc domain me me ISP, -sisEs5 LS li-sr avav without
water rights mus nus ; i5 ~ F.asf ana before
f9vSSIyirg water power should be granted any
time sllfcient to allow them TO conduct their bust
prohtably reasopaoe fnarsg , s1TE-q nT{1isres
which they obtain from the national government;
dl9imateiy through the natural growth and orderly
development of "5lr populate and lnduslIles ree
should b. safeglarjed for the benefit Of the people:
secured after the cost Of administration and i'm
provemcn{ has been met: snoIId nov aS5uTae Tatergavs
Accordingly have decided to sign nc Dis Us ;t n;I
tation in time OF the rights conferred
In my veto message OF April 1s. 1908. return
ing House bill 15.444. to extend the time for the
construction of a dam across Rainy River, I
said:
We are now at the beginning OF great ; 9eyelopI;
transrisso- is entering more and largely into
every element of The daily fe % 9L bom3g 5e mani
fest; already tho experience OF the past sn9Ns Us
The present pOey pursued in IN making Iart f9ess
the people in the flowing waters TO indlslGGsls ind or
psrpetuity these valuable privileges in advance of
tn the cs me gTantees apDerenty have little
financial or other ability 10 u, utllze, ne III
for the asking
The Rainy River Company. by an agreement
in writing, approved by the War Department.,
subsequently, promised 10 submit 70 ana aolee
bv such conditions may be imposed by the
Secretary Of War. including a time limit and a
.
nIiance in this way with these conditions did
the bill extending the time limit for that proJect
finally become a law
An amen dnnent 10 the present bill expressly
authorizing the government to fix a limitation
of time and impose charge was proposed oy
the War Department The letter. veto HleSsdse
and amendment above referred to were Consid-
erred bv the Senate Committee on Commerce, as
anpa4rs bv the committees report on the pres
ont bill and the proposed amendment was char-
aCtprZed BY the committee as new depaTtuIe
from the policy heretofore pursued in respect 10
legislation authorizing the construction or such
dams" Their report set forth an elaborate
legal argument intended TO show that the federal
government has no power TO impose any chargS
whatever for such a privilege
The fact that the proposed policy - new - n
Itself 10 sufficient argument against It's adOpLon-
As W.. are met with new conditions OF industry
seriously affecting the public welfare. We should
not hesitate to adopt measures tor the protection
Of the nrbIic merely because these measures ara
new When the public welfare is involved Con-
oress should resolve any reasonable doubt a. 10
It's legislative power in favor OF the people anu
against the seekers for a special privilege
NV reason for believing that the federal gov
eminent in granting a license 10 dam navt-
gable river. has the power TO impose any condi-
tions IL finds necessary to protect the public in
cIuding a charge and limitation OF the time. IL
that its consent is legally essential 70 an enter
prise of this character 1t follows that Congress
can impose conditions upon It's consent Ihls
nrincipIe was clearly stated in the House OF
Re1,rese entatives on March IS. 1908. by Mr. Will
iams Of Mississippi. when ne said
There can be no doubt in the mind OF any
nan seeki1e merely the public good and bubble
t, iT3atSsrdentlv OF anv desire for local egis-
,,.ersIanty state or federal is required to
t - the duty OF that sovereignty in the Interests
/ 0f tha DeoDle so TO condition the grant Of thar
power as that IL shall rebound 70 the interest of
aH the people. and that utilities OF vast vail.ss
should not be gratutOusly granted to individuals
or corporations and perpetualy alienated from thu
people or the state or the government.
IL Is admitted that this power to erect