Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-11-02
Pinchot's Stand.

Clifford Pinchot, the United States
forester who has had unpleasant no.
toriety thrust upon him during the
last few months through difference
of opinion with others connected with
the work, has made public a denial
of certain of the allegations against
him through a letter addressed to Col.
H. Z. Higginson. He also states his
nosition in relation to the hydro-elec-
trio situation of this country. Col.
Higginson is a director in the General
Electric Company which has been ac-
cused by some writer's with being the
power behind the movement for a con-
solidation of all hydro-electric COM
panies. Pinchot was credited with the
assertion but he denies that he ever
made it. The new combination or
trust controlling all the undeveloped
water power which is near enough to
centers of population to be operated
at a profit with competition with pow
er generated by steam or other agent
has been the subject Of much comment.
Forester Pinchot says in this letter
that he has no desire to prevent or
retard the development of water pow
err by private capital, but that he be-
lieves that concessions to individuals
hn hNy 1ir1O
hot more than so years and renewable
at the end OF that period with the
proper notifications incident to shift
ing population and conditions. He
denies that he has ever said privately
or publicly "that the General Electric
Companies or any other single exist
ing corporation, controls or is now
seeking to control all the water pow
ers of the country" He asserts that
there is a marked tendency towards
concentration and control of the hydro
electric development over wide areas
through a community of interests, or
otherwise.
Mr.. Pinchot notes the increasing
radius of practical electrical trans
mission and the effect of the trusts
upon the business of the country. He
does not say that a trust has been
formed. but in closing says:
Il therefore think that it is of
the utmost Importance for the peo-
pie of the nation to understand
these tendencies, realize their i'm
port and take effective steps now
while there is yet time to retain
and effectively exercise public con-
troll of this vital necessity of life.
This may be done by giving con-
cessions limited in time. requiring
a fair rental, and imposing cOndi-
tons to prevent the evils which
experience has taught us to eX-
pect from unregulated monopoly.
l am very glad indeed to have your
statement that the United States
would not part with this kind of
properly without fail leases That
is precisely the position that the
forest service has always taken
1t seems to us that there is little dan
ger that any one corporation can con-
trCl the water powers of this country
quire an amount of money so gigantic
that it would be impossible to assem-
he it, 1t is possible, however, that
the community of interest
idea certain agreements might be en-
tered into which would perhaps give
a semblance of form to a trust, but
no trust, however loosely or highly or
ganized, could or would permit the
large sums of capital necessary to hold
water power undeveloped any consider
able period of time to lie idle. There
are millions of horse power now going
to waste because the present owners
have rot sufficient capital to develop
them. They own the power but are
helpless. This would not be the case
We're there not the large combination
of capital suggested. Water powers
would be deVelOped IN order that they
earn something on the investment.
The State of Maine is at least third
in the number of thousand horse power
developed and undeveloped and com
bination of capital, whether private or
governmental, which would develop
that which is undevelOped and would
make more available that already par
TALLY developed, would be a bless
ing to us and would place us more
nearly in the position which is right
fully ours. An extensive development
of the hydro-electric power in this
country would rob the coal producing
states of their commercial supremacy.