Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-11-01
PRIVATE CAPITAL
Should Develop Water
Power, Says Pinchot'
Significant Statement by Gov
ernment's Chief Forester.
Present Tendencies Favor Trust
And will Eventually Produce It.

Washington, Oct. 3l.-The practice
of the government in granting power
concessions is outlined by Clifford Pin
chot, United States forester, in let
ter written to Col. Henry l.. Higgin-
son of Boston, Mass, director of the
General Electric Co. The letter takes
the form of public statement and is
significant now because of the wide
spread interest in the water power
question. Mr. Pinchot seeks to empha-
we particularly that he does not
wish to retard the development of wa
ter powers by private capital.
Summarizing the conditions I'M
posed on all power permits, the gov
eminent forester makes clear the point
that the renewal of permit at the end
of 50 years is at the option of the gov
errment; that it is bl statute, revoca-
bic by the secretary of the interior, but
unless revoked, continues so years.
when it terminates without any spe-
cai revocation, but may then be re-
newed at the option of any on condi-
tions to be fixed by the government.
Mr. Pinchots letter says in part:
First of all, l have no desire to pre-
vent or retard the development of water
powers by private capital. Tney should
be developed by private capital, in my
Judgement, under proper government con-
troll, and not by the nation or the states,
Secondly I have not said. either pri-
va tely or publicly, that the General Elec-
trio Co, or any other single existing
corporation, controls or is now seeking to
control all the water powers in the coun-
try But no one can deny that there is a
marked tendency toward practical concen-
tration and control of the hydro-electric
dev elopment over very wide area In
some cases this concentration may be a
mere community of interests evidenced
and made effective by directorate in sew
eral legally distinct corporations held by
the representatives of the same interests
or of friendly interests. In other cases
it appears to be brought about by ]
clo:er intercorporate relation. and in Still
others, as for instance in central Call
fornia, there seems to be a single corpor-
ate control of large and populous terri
tory. The report of the Commissioner OF
corporations, transmitted to Congress by
President Roosevelt with his message OF
Jan. 15 1909, vetoing a bill 0H. r. 17.70O'
TO license the building of a dam in James
river. Missouri, establishes these facts
"The increa sing radius of practicable
electric transmission and the recent man
cial history of the country as to consol-
dation of other kinds of business seems
to justify the belief that there is a strong
tendency toward concentrated control Of
hydro-electric development in the United
States. / do not say that single trus
has yet been formed. AS an outsider
have not the information which would
warrant my saying that such a trust has
been planned. but it is apparent that pres
ent tendencies favor such a trust and will
probably produce it if they continue.
Il therefore think that it is of thu
utmost importance for the people of thu
nation to understand these tendencies
: realize their import and take effective
steps now while there is yet time to re
tain and effectively exercise public con
| troll of this vital necessity of life. This
may be done by giving concessions linn
' tied in time, requiring fair rental, ant
! imposing conditions to prevent the evils
which experience has taught us to expec
| from unregulated monopoly l am very
| glad indeed to have your statement tina
the United States would not part witt
this kind of property without fair leases.
| That is precisely the position that thu
| forest service has always TAKEN