The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-11-01
GOVERNMENT RULES
FOR POWER SITES
Forester Clifford Pinchot Gives
EpitOme Of Regulations
Affecting Grants.
ENCOURAGE DEVELOPMENT
BY PRIVATE CAPITAL
Permits Should Be Limited to
Fifty Years, With Priyi-
lege of Renewal.

WASHINGTON. Oct. 31.-The prac-
tlce Of the government in granting
waterpower concessions is outlined by
Clifford Pinchot, United Stutes forester,
in Il letter written to Colonel H. J..
lIigginson of Boston. Mass. n director
of the General Electric company. The
letter takes the form Of n public state
ment, and is significant of widespread
interest in the water-power situation.
Mr.. Pinchot seeks to emphasize par
ticularly that he does not wish TO retard
the development of water-power by prl-
vate capital, He makes clear the point
| that the renewal OF a permit at The END
Of fifty years is All the option of the
government, that it is, by statute, re-
yocable by the secretary of the interior.
hut, unless revoked. continues fifty
years, when it terminates without any
special revocation, but may then be re-
| uewed ut the option of, and on condi
tions TO be fixed by the government. The
letter follows:
Not to Retard Development.
Ny dear Colonel ,ilisginsonj; Your !,ti !eti
he glad TO know that I have been mis-
quoted as 10 the statements you mention.
First Of all. ! have no desire 10 prevent
or rctard the development of water pow
ers by private capital. They should be
developed by private capital, IN my iudS-
rnent. under proper government control,
and not by the nation or the states,
Secondly. ] nave not said, either pri-
vately or>publicly. that the General Elec-
tric company or any other single exist
| ing corporation controls or is now seek
hing TO control all the water powers III
the country But 30 one can deny there
is Il marked tendency toward practical
concentration and control OF thu hydro
electric development over very wide areas.
In some cases this concentration may BE-
mere community of interests" evil
| denced and made effective by direct
crates in several legally distinct corpora
| tlOns hold by the representatives OF the
same interests or friendly interests,
In other cases ii appears to pe brought
about by closer inter-corpo-ate rela
tions, and in still other cases as for in
stance, Central California, there seems
| to be a single corporate control OF q
| port OF the commissioners of corporations,
! transmitted 10 congress with his message
| 1900 to license the building of as dam
| In James river, Missouri. esta blishcs these
| facts.
Tendency Toward Concentration.
The increasing radius Of practicable
electric transmission and the recent finan-
| cial history of the country as TO consoi-
| daton Of other kinds Of business seems
| to justify the belief that there is a strong
tendency toward concentrated control OF
! hydro electric development In The United
| States. | do not say single trust has
yet been formed. AS an outsider. l have
not the information which would warrant
| planned but IL is apparent that the pres
| cnt tendencies favor such trust and Will
produce II ii they continue,
| I therefore think il is OF the utmost
| Importance for the people TO understand
| these tendencies. realize that import and
take effective steps now while there is
4tg=g
public control Of this vital necessity OF
HE. This may be done by giving con-
cessions limited in time, recurring fair
rental, and imposing conditions 10 pre-
vent the evils which experience has
! taught us to expect from unregulated
| monopoly.
] am very glad indeed 70 have your
| statement that "the United States should
| not part with this kind OF property with
| Jut fair leases" That is precisely rne
position the forest service always has
taken.
To Prevent Speculation.
l inclose copy OF the form OF per-
nit (called a Special Use Agrecmeut)
now used by tho forest service in grant
ing all water power concessions In the
national forests
| call your attention to the fact that
this permit requires that construction be
begun and completed within n reasonable
| time fixed in accordance with engineer
| ing conditions, in order To prevent the
speculative holding of undevelo2ed sites;
tllat a small annual mileage and acreage
| charge bc paid during construction, for
the same reason. that reasonable an
nual charge IN proportion to the cleo
| tri"al output, nominal amount at the
outset and gradually increasing by ruoder-
ate increments in successive fivcYear
periods, be paid after operation begins.
with reasonable deductions on account OF
other than national forest land used by
the plant or forming part OF the water
| shed. and in order To encourage the build
ing Of storage reservoirs. OIL account OF
water storage by the pcrmitee: that TIM
Der cut or destroyed in construction be
paid for al reasonable stipulated price
that the plant be operated continuously
up to a reasonable stipulated fraction Of
its full capacity, in order to prevent ar
.iilcial scarcity and the resulting high
prices to consumers. that power be sold
TO the United States. when requested
at low price az to amy other con-
sumer that the permit shall not be
transferred, since the transfer of govern
ment contracts Is expressly prohibited by
statute; that the pcrmitec must use rca-
sonablc precautions TO protect the forest
by iirc-teht'nS, etc; that the permit
shall terminate at the end OF fifty years.
but may then be renewed such con-
but that in fixing them neither the per-
init itself. nor the franchises. stock or
bonds of the permltee shall he consid-
time or physical works constructed under
the permit, this in order that future gen
eratlons may not be burfcned to pay divi-
dends on inflated securities
These permits are issued under tho
authority of q specific statute (uct Feb
ruary I5. 1901. 81 stat. 100 p.) The at
torney general has expressly given his
opinion tina, the statute empowers the
government 10 improse the construction
! charges and other conditions cortainc,
in the permit Opinions OF attorney gen
eral. vol. &c. p. 42D and the United States
circuit cour; FOR Colorado has BY cN-
DrosS order directed the receivers OF tho
as AninIas Power company lo pas the
charge and sign thc permit The admin
ist:ation Of this statute. 50 far as mn
tional forests are concerned. was trans
! rerrcd 10 thc department OF agriculture bv
2S). but Still remains in tho interior de-.
portmcnt, so far as reserved public lands
0nd national PARKS are concerned
| Under the express statutory aulhority
so conferred the forest service issues por-
mitS, the provisions OF which I have sum
| mar'zcd. / hopu you Will agree with mo
that they are "fair leases"
/ CLIFFORD PINCUOT,
Forester.