The Birmingham age-herald., 1909-11-01
CLIFFORD PINCAE
 ON CONCESSIONS l Government Should Protect
 Water Power WRITES To HlGGlNS0N Head of Forestry Department Sum marizes the Condition Imposed on All Power Permits Granted
 to Corporations.
WRITES To HUTCHINSON


 concessions is outlined by Clifford Pin ohot. United States forester, in a letter written to Col. Henry l.. Higginson of Boston, director of the General Electric company. The latter takes the form of public statement
 Summarizing the conditions imposed on all power permits, MT. Pinchot makes clear the point that the renewal of a permit at the end of 50 years is at the op- tion of the government; that it is re- yocable by the Secretary of the Interior but unless revoked. continues 50 years when 1t terminates without any special revocation, but may then be renewed at the option of and on conditions to be fixed by the government
 l. MT Pinchot's letter in part follows:
 You will be glad to know that have been misquoted as to the statements you mention. First of all. have no desire to prevent retard the development oi waterpowers by private capital. They should be developed by private capital in my judgment, under proper govern ment control, and not by the nation or the states.
 Secondly, I have not said either pub licly or privately that the General Elec- tric company or any other single ex- isting corporation controls or is now seek ing to control all the waterpower in the country. But no one can deny that there Is marked tendency toward practical concentration and control of the develop- ment over q very wide area. In some cases this concentration may be a mere community of interests evidenced and made effective by directorates in several legally distinct corporations held bv the representatives of the same interests and friendly interests. In other cases 1t ap- pears to be brought obut by a closer in- ter-corporate relation, and in still others. as for instance, in Central California. there seems to be a single corporate con- trol of large and populous territory. The report of the commissioner of corpor- ations. transmitted to Congress bv PresI- oeht roosevelt with his message of Jan uary To, 1909, vetoeing a bill GIT. R. 177oD 10 license the building of a dam in James river, Missouri, establishes these facts.
 People Should Understand.
 l, therefore, think that it is of the ut most importance for the people of the na- ton to understand these tendec,es f+o concentrate control, realize their import and take effective steps now while there IS yet time. to retain and effectively ex- erclse public control of this vital necessity of life. This may be done by giving con sessions limited in time, requiring a fair rental and imposing conditions to nre- vent the evils which experience has taught us to expect from unreeuIatea monopoly. I am very glad indeed to nave your statement that the United states should not part with this kind of property without fair leases That ia pfeelsely the position that the forest ser vice has always taken
 enclose copy of the form of hermit tcailed special use agreement now usea py the forest service in granting all Waterpower concessions In the national forests and call your attention to inc aa, that this permit requires that construc- ton be begun and completed within a rea.- onaloe time, in order to prevent the snecu- iative holding of undeveloped sites. tbat a small annual mileage or acrea ge charge De paid during construction for the same reason; that reasonable annual charge Tn proportion to the electrical outnut nominal In amount at the outset and gradually increasing by moderate incra- Inents In successive fve-year periods. De paid after operation begins with reasonable deductions on account of other than national forest land used hs tba plant or forming part of the watershed ana m ofoer to encourage the building Of storage reservoirs, on account Of wa Ter storage by the permittee. that tino- Der cut CT destroyed in construction ba paio TOT al reasonable stipulated price. that the plant be operated continuousIv hp to a reasonable fraction of it's fuiI capacity, in order 10 prevent art,eotoI scarcity and the resulting high prices to consumers; that power be sold to the united States, when required. at aa Iou prices as any other consumer for i. ILa use; that the permit shall not be 1ransS ierred since the transfer of govern. ineht contracts is expressly prohibited bv statue tthe power to issue a new perp,it | 'o successor of the permittee. of course remains in the government); that the her. nii''ee ,a shali not enter into any combina- ton or trust to restrict output or in restraint of trade, etc.: that the nsrr,,..aa must use reasonable precautions to nro- ,ect the forest by firefighting. etc . tba+ the permit shall terminate at the end or "o years and then may be renewed o1 such conditions as the government shah then fix, but in fixing them neither PSits4N 'e9cii, ilof the franchise stock or bonds of the permittee shall be consid- cred, but only the actual value at that tune Of physical works constructed un- der the permit this in order that future generations may not be burdened to nav dividends on inflated securities.
 Specific Statute.
 These permits are issued under author- ity of specific statute (act February K l9Ol 31 stat. 79o). The Attorney General has expressly given his opinion that tho statute empowers the department to i'm pose the construction charges and other conditions contained in the permit fopin- ions of Attorney General vol. 26. p-421, and the United States circuit court for Colorado has by express order directed the receivers of the Las Animas Power company to pay the charge and sign tho permit, The administration of this statute so far as national forests are concerned was transferred to the department of az rlcuiture by the act of February 1. 1eo5 |! (3S stat. 62S), but still remains in the | interior department, so far.as unreserved l public lands and national parks are con cerned.
 Under the express statutory authoritv so conferred the forest service issues nar- mits, the provisions of which I have sum marized hope you will agree with me l that they are fair leases.'"
 
 Bank CIearings Increase.
 Chattanooga, October 31-(Special l.,