The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1909-01-16
WAT Err RESOURCE
CON TROLLEO BY
IS COMPANIES
PRECEDENT SAYS MONOPOLY OF
WATER POWER THREATENS
DISASTROUS RESUlTS-REFUS-
ES TO GIVE AUTHORITY TO
CONSTRUCT DAM.

WASHINGTON, Jan. l6-President
Roosevelt has vetoed the house bill
which grants To VIM. ii. S(andish the
privilege TO construct dam across
he James river, Missouri, TO use part
II the waters Of that stream for cleo
tric power. The president explains
that he votes the measure because
one-third OF the water power in the
| inited States is controlled by - cor
porations OF which the General EleC-
rio and Westinghouse companies are
dominant The monopoly of this re-
source. he declares. threatenens to
equal that OF the oil output by the
Standard oil CO. His veto message
says:
Il return herewith without my az.
nroyal house bill l77O7. to authorize
William II Standish TO construct Il
Jam across james river. in Stone
county. Missouri. and divert a portion
OF its waters through I. tunnel into the
said river again TO create electric pow
er. Ny reasons for not signing the
bill are:
The bill gives to the grantee val
liable privilege. which by its very ma
ture is monopolistic, and does not con-
lsin the conditions essential 10 pro-
tect the public interest.
MY reason for believing that the
federal government. In granting 4
license TO dam navigable river, has
he power TO impose any conditions
| X finds necessary to protect the public,
including a charge and limitation of
he time, Is that Its consent Is legally
Ill ,,rta . hi ,.In r-
acter. IL follows that congress can
impose conditions upon its consent.
THE authority or congress In THIS
matter was asserted by Secretary Tait
on April II, 1908, in his report on Sen
ator Newlands inland waterways com
mission bill Is. 5000. where he said:
"In the execution OF any project
and as Incidental 10 and inSepara0ly
connected with the Improvement oil
navigation, the power OF congress
extends TO the regulation of the use
and development OF the waters for
purposes subsidiary to navigation
And by the solicitor general In
memorandum prepared after careful
OF the subject.
believing that the national govern
ment has this power. | am convinced
that its power ought TO be exercised.
Monopoly Threatens.
THE people of the country are
threatened by a monopoly FAR more
powerful. because in far closer touch
With their domestic and Industrial lie
han anything known To our exper'
fence. A single generation VIII see
the exhaustion of our natural re-
sources OF oil and gas and such ris"
in the price OF coal as will make the
price OF electrically transmitted water
power a controlling factor In trans
portation in manufacturing, ana In
household lighting and heating. our
water power alone. II fully developed
and wisely used, is probably sufficient
for our present transportation, indus
trial municipal and domestic needs.
Most of II Is undeveloped and is still In
national or state control.
ITO give away, without conditions,
This one OF the greatest or our re-
sources. would be an act OF folly. III
40 are guilty OF IT. our children will
he forced to pay an annual return
mon "A capitalization based upon the
highest prices which the traffic VIII
bear They will find themselves fac"
10 face with powerful interests IN
trenched behind the doctrine or vested
rights and strengthened by every de-
.ense which money can buy and the IN
senuity of able corporation lawyers
can devise.
Long before tnat time they may
and very probably will have be-
,ome a consolidated interest. controlled
from the great financial cenlcrs die.
,ating the terms upon which the ell
zen can conduct his business or earn
mis- livelihood. and not amenabie to
he wholesome check of local opih'
ion.
The total water power now In use
by the power plants In the United
states is estimated by the bureau OF
census and the geological survey as
+. 800 900 horsepower. Information
collected by the bureau Of corpora.
lions shows that In l3 large concerns.
~ which The General Electric
20. and the Westinghouse Electric 4
Manufacturing Co. ere most impOrtani.
now hold water installations and adj
vantageous power sites aggregating
about .046 900 horsepower. where the
control Of these concerns is practically
equal 20 over 10 per cent OF the total
now I'm use. Further evidence OF a
very strong nature as To additional in
Incorporate relations furnished b.
he bureau. leads me to The conclu.
zion that his total should be Increased
20 "a per cent, and still other evidence.
though less conclusive. nevertheless.
affords reasonable ground for enlarg