The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-01-16
General Electric and West
inghOuse Control Power.
HERBERT Z. SMITH REPORTS
Veto Message Presi-
dent Sends Interesting statistics to
House-EIectric Power Transmits
sion Is Responsible for COncentra-
ton of Commercial Iuterests.

G
Commissioner Of Corporations. on the
concentration Of water powers was made
public. Mr.. Smith says:
THE water power situation has greatly
changed by recent improvements In cleo
tric power transmission Two-hundred-
mile transmission is now regarded as
/ commercially possible even in the cheaper
coal areas. A two-hundred-mile radius
opens an area Of 10000 square miles for
the marketing Of power from a given
plant
"A strong movement toward eoncentrat-
/ ing the control Of water powers has ac-
companied this change" Mr.. Smith re-
CARDS it as a significant fact that the
concentration has taken place IN the last
FIVE years and enumerates the principal
/ concentrations, as follows:
General Electric, Westinghouse. and
other concentrations. under which head
/ the commissioner Classics all OF those
companies which cannot at present be
! officially identified with either OF the first
two named
Movement for Concentration.
He comments or the movement toward
Concentration as follows. ''InteTCOmpany
/ relations are easily concealed Strictly
I judicial proof OF such community Of in
! terests IS rarely obtainable. nor IS it
necessary for practical purposes. It is
sufficient TO give as herein the significant
evidentisl facts, leaving the obvious de-
auctions TO be made therefrom.'
ThereUpOn ne proceeds 10 classify the
| General Electric and the Westinghouse
/ concentrations into the following groups:
I Those where a control by one or the
other Of the parent companies is ad-
mitted; those where such control IS in
I ferred; those where The control is par
tally Indicated. but not absolutely proven
The commissioner processes 10 be IN
able 70 define the exact relations between
I the General Electric and the Westing-
/ house, but invites attention to the fact
that they have pooled their patents since
1855, and that certain individual interests
/ are common
He names as subsidiaries u the Cen
eral Electric the following corporations:
United Electric Securities Company.
Maine. 1890: Electrical Securities Corpora
ton. New York. 1891. and Electric Bond
and Share Company. New York. 1895.
The commissioner enUmerates the fol-
( lowing wafer power companies as ad-
mitJedly ii the control Of the General
Electric Schenectady Power Company,
New York Developments on the Hoosac
River, owned outright by the General
Electric; Carolina Power and Light Com
pany, Raleigh. y. g, installed on Cape
Fear River, stock held by the Electric
Bond and Share Company, subsidiary OF
the General Electric. and voted by J. D.
Mortimer; Rockingham Power Company.
on Yadkin River. North Carolina, financed
By General Electric. through its sub
sidiary. the Electrical Securities Corpora
ton: Aninas Power and Water Company.
Colorado. and Central Colorado Company,
OF Colorado.
Company's Development.
IN addition 10 the above the Commits
sioner declares that there are q number
Of other water power companies which
have q development Of about 43O.0o0 horse
power whose connection with the General
Electric may be reasonably inferred
The following official analysis OF the
Westinghouse group II companies IS sig
nihcant: Security Investment Company.
Electric Properties Company CNew York.
1866; successor 10 Westinghouse, Church,
Kerr & Company. and the Smith inter-
ests, manufacturers OF water turbines, OF
which c. Elmer Smith and {. FANS Smith
are named as moving spirits. being both
identified with the General Electric.
IN addition. the commissioner estimates
that there are other Water-pOwer COM
psnies. with q total OF about 10. 90 horse
power, whose connection with the West
inghOuse Company IS partially indicated
In addition 70 the concentration Of the
General Electric and the Westinghouse
companies, a large number OF corpora
tons and interests are named as further
showing the facts and tendencies Of con
centration" Of the water power OF the
country.
The commissioner OF corporations sum
marizes the situation with respect to the
concentration OF the water power Of the
country as follows:
IAN estimate Of the water power de-
veloped and potential, now controlled by
the General Electric interests. admitted
or sufficiently proven. IS about $4,000
horsepower: by the Westinghouse inter
ests, similarly known, about $50, 600 horse
power: and BY other large power com
panies $1,000 horsepower. This makes a
total Of ,S97. 900 horsepower Adding the
horsepOwers Of the third class those
whose connection with these two great
interests IS at least probable, 70 Wit.
so 600 horsepower. We have a small group
OF thirteen selected companies or inter
ests controlling a total OF !. s27 900 horse
power.
Sffou Held nv Comhfua
Assuming that the water power at
present in use by water-pOwer plants in
the United States is $4,000 horsepower,
as estimated BIZ the United States Cen
sus and Geological Survey from figures
OF installation. It Is seen that approx
mately q quantity Of horsepower equal
10 more than g per cent Of that amount
Is now probably controlled by this small
group OF interests Furthermore, this
percentage by no means tells the whole
truth
The foregoing combines naturally rep
resent a majority OF the best power sites.
These sites are strategic points for large
power and market control. Poorer sites
viii not generally be developed until
these strategic sites are developed to
lA40AL LUZ OoPoealy- anu SAoUld THESE
strategic sites be coupled up they viii
become still more strategic There are
powerful economic reasons for such
coupling.
The great problem OF water power
companies IS that Of the uneven load. and
noF only on uneven lead, but Of an IN
even source Of power. because Of the
fUctuating flow Of the stream-a coup
ling Of utilities not only OF the different |
stOTages in the same drainage basin. but. 4
OF still greater import. the different drain /
age flows Of different basins Also. By |
coupling up powers which have largely l
day loads can at night help out other /
powers which have largely night loads. /
and vice versa Coupling up is rapidly I
in progress in the United States.
The Niagara Falls Power Company