Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-01-16
WARNS THE COUNTRY
President Points to C0nCen-
tration of Water Power.
THREATENED BY MONOPOLY
Declares That the History of the Oil
Industry May Be Repeated.
VETOES BILL TO DAM A RIVER
To Give Away One of the Greatest
of Our Resources He Characterizes
as an Act of Folly.
THREATENED BY MONOPOLY
vETOEs BILL TO DAM A RIVER

Holding that it gives to the grantee
valuable privilege which by its very ma
ture is monopoistic," the President mas
returned to the House of Representatives
with his veto the bill authorizing William
Standish to construct a dam across the
James river in Stone county, Mo-. and TO
create electric power. This. the Presi-
dent explains, is i'm line with the policy
previously enunciated by him in 1908
The President says he believes the
federal government In granting a Tense
to dam a navigable river has the power
to impose any limitations it finds neces-
sary to protect the public and is con-
WINGED that this power should be exer-
cised.
'"rhe people Of the country" he says
in his message. ARE threatened by mo-
nopoly far more powerful, because in far
closer touch with their domestic and in
duStrial life. than anything known to our
experience. A single generation will see
exhaustion of our natural resources of oil
and gas and such a rise in the price of
coal as will make the price Of electrically
transmitted water power a controlling
factor in transportation. in manufacture
| ing, and in household lighting and heat
ing. Our water power alone, if fully de-
veloped and wisely used. is probably suf-
| ficient for our present transportation, in
dustrial, municipal and domestic needs.
Most of 1t is undeveloped and is still in
national or state control.
May Foster a Tyrant Monopoly.
ITO give away, without conditions, this.
one of the greatest of our resources.
would be an act of folly. If we are guilty
Of it. our children will be forced to pay
an annual return upon capitalization
based upon the highest prices which the
traffic will bear They will find them
selves face to face with powerful inter
estS intrenched behind the doctrine of
| vested rights and strengthened by every
defense which money can buy and the in
genuity of able corporation lawyers can
devise. Long before that time they may
and very probably will have become a
consolidated interest. controlled from the
great financial centerS. debating the
terms upon which the citizen can conduct
| his business or earn his livelihood, and
not amenable to the wholesome check of
local opinion.
! One-Third of Power Controlled.
| THE total water power now in use by
power plants in the United States is esti-
mated by the bureau of the census and
| the geological survey as 5,30O, 900 horse
power. Information collected by the bu-
| reau of corporations shows that thirteen
| large concerns. of which the General
| Electric Company and the Westinghouse
| Electric and Manufacturing Company are
most important, now hold water power
| Installations and advantageous power sites
| aggregating about 1,O46,OO horsepower.
| where the control by these concerns is
| practically admitted. This is a quantity
| equal to over - per cent of the total
now in use. Further evidence of very
| strong nature to additional INTERIOR
porate relations furnished by the bureau
leads me to the conclusion that this total
| should be increased to ~ per cent, and
still other evidence, though less conclu-
| sive, nevertheless affaords reasonable
ground for charging this estimate by 3
per cent additional In other words, it is
| probable that these thirteen concerns di-
4, ter power and advantageous power sites
equal to more than :i3 per cent of the to-
tai water power now in use.
May Repeat Oil Trust History.
This astonishing consolidation has
taken place practically within the last
five years. The movement is still in its
infancy and unless it is controlled the
history of the oil industry will be repeat
ed in the hydro-electric power industry
with results far more oppressive and dis
astrOus for the people. 1t is true thai
the great bulk of our potential water
power is as yet undeveloped, but the site:
INnlcn are now COHlTOlleu by COInDind
tons are those which offer the Creates
advantages and therefore hold a strategic
position. This is certain to be strength
ened by the increasing demand for powe
and the extension OF long-dlStance cleo
| trical transmission.
1T Is in my opinion. relatively unim
portant for us to know whether no
the promoters of this particular projec
are affiliated with any of these great cor
| poratons. If We make an unconditional
4 to Mt trn1
ceases. He or any purchaser from
him will be free to sell his rights to an.
one of them at pleasure. The time t
attach conditions and prevent monopol
is when grant is made.
Policy of the Administration.
. ION the other hand, the administrator
, proposes that authority be given to issu
power permits for a term not to excee
: fifty years irrevocable except for breacl
of condition. This provision to proven
revocation. would remove the. only vail
ground of objection to the act Of 1901
which expressly makes all permits revoc
able at discretion. The following amend
ment to authorize this in national forest
was inserted in last year agriculture
appropriation bill
And hereafter permits for powe
plants within national forests may b
made irrevocable, except for breach o
condition, Tor Sucf term. not e&ceeQln
, fifty years, as the Secretary of Agricul
e ture may by regulation prescribe, an
land covered by such permits issued i
: pursuance of an application filed befor
n entry, location or application, subsequent
a ly approved under the act of June IL, 1Wt
shall in perpetuity remain subject to sue
permit and renewals thereof.
i Desires of Power Companies.
1.-The representatives of the power con-
I
: last session agreed upon the bill abov
Is mentioned as the most favorable to the
Il interests. At their request frequent cor
ferences were held between them an
7. the representatives of the administratio
= for the purpose of reaching an agree
ID ment If possible. The companies refuse
10 to accept anything less than grant
perpetuity and insisted that the sligl
charge now imposed by the forest servio
| was oppressive. But they made no n
e Spouse to the specific proposal that IL
le hleneSS nf no OF