The Montgomery advertiser., 1909-11-01
DEFINES WATER RIGHTS
PINCHoT ISSUES PUBLIC
 STATEMENT.
Explains That Government Demands Fair Return for Use of Water In National Forests By
 COrpOrmtiOna.


 Washington, Oct. s1.--The practice of the government in granting water power concessions Is outlined by Gif- ford Pinchot, United States forester, in letter written to Colonel Henry L. Higginson, of Boston, Mass, a direc- tor of the General Electric Company. The letter takes the form of public statement
 Summarizing the conditions imposed on all power permits. MT. Pinchot makes clear the point that, the re- newal of permit at the end of fifty years is ct the option of the govern ment; that 1t is revocable by the sec retary of the interior, but unless re- voked. continues fifty years, when 1t terminates without any special revo- cation, but may then be renewed at the option of and on conditions to be fixed by the government.
 Mir. Pinchot's letter in part follows:
 You will be glad to know that I have been misquoted as to the state ments you mention. First of all, have nos desire to prevent or retard the development of water powers by private capital. They should be de- veloped by private capital. in my judg- ment, under proper government con- trol. and not by the nation or the states. ,e-
 secondly, I have not said eitheH publicly or privately that the General Electric Company or any other single existing corporation controls or is now seeking to control. all the water pow CTS in the country. But no one can deny that there Is a marked tendency toward practical concentration and control of the hydro-electric develop ment over very wide area. In some cases. this concentration may be a mere community of interest evidenced and made effective by directorates in several legally distinct corporations held by the representatives of the same interests and of friendly inter ests. In other cases 1t appears to be brought about by a closer inter-corpo- ration relation, and In still others, as for instance, in Central California, there seems to be single corporate control of large and populous terri tory The report of the commissioner of corporations, transmitted to Con gress by President Roosevelt with his message of January IS. 1909, vetoing a bill (H. R. 17707) to license the building of dam in James River, Mo. establishes these facts.
 People should UnderxtAnd.
 'T therefore think that 1t Is of the utmost importance for the people of the nation to understand these tenden- cies, to realize their import and take steps while there is yet time, to re- tain and effectively exercise public control of this vital necessity of life. This may be done by giving conces- sions limited in time, requiring a fair rental and imposing conditions to pre- vent the evils which experience has taught us to expect from unregulated monopoly. I am very glad indeed to have your statement that the United States should not part with this kind of property without fair leases That is precisely the position that the forest service has always taken.
 T enclose a copy of the form of permit (called a special use agree menD now used by the forest service in granting all water power conces- your attention to the fact that this permit requires that construction be begun and completed within a reas- onable time. fixed In accordance with the engineering conditions, in order to prevent the speculative holding of un- developed sites: that a small annual mileage or acreage charge be paid dur ing construction for the same reason; that a reasonable annual charge in proportion to the electrical output. nominal in amount at the outset, and gradually increasing by moderate in crements in successive five-year per- iods. be paid after operation begins. with reasonable deductions on account of other than national forest land used by the plant or forming part of the watershed. and in order to encourage the building of storage reservoirs. on account of water storage by the per mittee: that timber cut or destroyed in construction be paid for at a reas- enable stipulated price; that the plant be operated continuously up to a reasonable fraction of It's full capa- city, in order to prevent artificial scar city and the resulting high prices to consumers; that power be sold to the United States when required. at as low price as to any other consumer for like use; that the permit shall not he transferred, since the transfer of government contracts is expressly pro- hibited by statute (the power to is-