Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1909-11-01
PINCHOT WRITES
OF HIS POSITION
Chief Forester Outlines Attitude of
His Department with Regard
to Water Power.
FRIENDLY TO PRIVATE CAPITAL
Government Does Not Seek to Prevent
Legitimate EndeavOr.
NATION OR STATE OUT OF IT
No Direct Charge Of One Interest
Being Implicated.
LETTER TO COLONEL H1GGENsoN
Official Says There IL strong
Tendency to Concentration of
Control - Fair Leases
Acceptable.
Government Does Not Seek to Prevent
Legitimate EndeavOr.
NATION OR STATE OUT OF IT
No Direct Charge Of One Interest
Being Implicated.
LETTER TO COLONEL HIGGENsON

WASHINGTON, Oct. s1.-The practice Of
the government in granting water power
concessions Is outlined by clifford Pinchot
United States forester, in a letter written
to Colonel Henry l.. Higginson of Boston
Mass, a director of the General Electric
company. The letter takes the form of a
public statement and is significant at this
time because OF the widespread interest in
the water power question. Mr.. Plnchot
seeks to emphasize particularly that he
does not wish to retard the development Of
water powers by private capital.
Summarizing the conditions imposed on
all power, permits the government forester
makes clear the point that the renewal of
a permit at the end Of fifty years is at
the option Of the government; that it is,
4 by statue revocable by the secretary Of
the interior but unless revoked, continues
fifty years when it terminates without any
special revocation, but may then be re-
newed at the option of and on conditions
to be fixed by the government.
Interest in Private Capital.
Mr.. Pinchot in his letter says:
You will be glad to know that 1 have
been misquoted as to the statements you
mention. First OF all, have no desire to
prevent or retard the development of water
powers by private capital. They should be
developed by private capital In my judg-
ment under proper government control,
and not by the nation or the states.
Secondly, l have not said, either pri-
vRtely or publicly that the General Electric
company or any other single existing cor
poration, controls or is now seeking to
control, all the water powers in the coun-
try. But no one can deny that there ia
marked tendency toward practical con
oentration and control OF the hydro-electriC
development over very wide area. In some
cases this concentration may be a mere
community of interests evidenced and
made effective by drectorates in severa
LOCALLY distinct corporations held by th'
representatives Of the same interests or oi
friendly intefests.
Closer Relation of Capital.
In other cases 1t appears to be brought
about by a closer inter-corporate relation
and In stIll other cases, as, for instance, ii
central California, there seems to be 1
single corporate control of a large and pop
ulous territory.
THE report OF the commissioner of cor
porations. transmitted to congress with hi
message of January 10, 1903, vetoing bill
(H. r, II, 7O) to license che building Of
dam In James river Missouri, establlshe
NANhH AdtlHs
The Increasing radius of practicable elec
trio transmission and the recent flnancla
history Of the country as to consolidation
Of other kinds OF business. seems to justif
the belief that there is a strong tendenc
toward concentrated control Of hydro elec
tric development in the United States
do not say that single trust has yet bee
formed. AS an outsider. l have not the in
formation which would worrant my sayin
that such a trust has been planned, but
is apparent that present tendencies fsvo
such a trust, and will produce it. If the
continue
Il therefore think that II is of the ut
y most importance for the people of the ma
y ton to understand these tendencies, realiz
their import and take effective steps no
while there is yet time TO retain and ei
fectively exercise public control of th
vital necessity OF life.
This may be done by giving concession
limited In time, requiring a fair rental, an
imposing conditions to prevent the evil
which experience has taught us to expeC
from unregulated monopoly. 1 am yer
/, glad Indeed to have your statement ths
the United States should not part wit
this kind of property without fair leases
That is precisely the position that the fol
est service has always taken"