Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-11-01
MONOPOLY OF
WATER POWER
IS DENOUNCED
CLIFFORD PlNCH0T OUTLINES
FEDERAL POLICY
SAYS PRIVATE CAPITAL SHOULD
DEVELOP GRANTS
Chief Forester Denies Accusations and
Admits Corporations Seek to
Control Hydro-EIectrlc
Resources of Nation

w ASHINGTON, Oct. 31.--The prac-
w tice of the government in grant
ing water power concessions is
outlined by Clifford Pinchot, United
States forester. in a letter written to
Col. Henry 4. Higginson of Boston, a
director of the General Electric COM
pany.
The letter takes the form of public
statement, and is significant because
of the widespread interest in the water
power question.
Mr. Pinchot seeks to emphasize par
ticularly that he does not wish to re-
tard the development OF water power
by private capital.
He makes clear the point that the
renewal of a permit at the end of fifty
years is at the option of the govern
ment; that IL Is, by statute, revocable
by the secretary of the interior, but
unless revoked continues fifty years,
when IL terminates without any special
revocation, but may then be renewed
at the option of and on conditions to
be fixed by the government.
The letter follows:
MY Dear Col. Higginson: Your let
ter OF October is received. You Will
be glad to know that l have been mis-
quoted as to the statements you men
tion.
First of ALL have no desire to pre-
vent or retard the development OF
water powers by private capital.
Favors Private Control
"They should be developed by prl-
vate capital, in my judgment, under
proper governmental control, and not
by the nation or the states.
Second, | have not said, either pri-
vately or publicly, that the General
Electric company or any other single
existing corporation controls or Is now
seeking to control all the water powers
in the country
"Rut no one can deny there is a
marked tendency toward practical con-
centration and control Of the hydro
electric DEVELOPMENT over very wide
areas In some cases this concentra-
ton may be mere community OF In
terests' evidenced and made effective
by directorates in several legally dis
tinct corporations held by the repre-
sentatives of the same interests or OF
friendly interests.
I'm other cases IL appears To be
brought about by a closer inter-cor-
porate relation. and In still other cases
las for instance in central California
there seems to be a single corporate
control of a large and populous terri
tory.
1.-The report of the commissioner OF
corporations, transmitted to congress
with his message of January 10, 1909
vetoing a bill III. II. 1770D to license
the building of a dam in James river,
Mo, establishes these facts.
Seek to MonopoIize
"The increasing radius of practicable
electric transmission and the recent
financial history of the country as to
consolidation of other kinds of busi-
ness seem TO justify the belief that
there is a strong tendency toward con-
centrated control of hydro-electric de-
velopment In the United States. l dc
not say a single trust has yet been
formed.
"As an outsider, l have not the IT.
formation which would warrant that
such a trust has been planned, but il
is apparent the present tendencies
favor such a trust and will produce
il IL they continue.
81 therefore think 1t is of the utmost
Importance for the people TO under
stand these tendencies, realize their
import and take effective steps now
while there is yet time. TO retain and
effectively exercise public control OF
this vital necessity of life.
"This may be done by giving conces-
sions limited in time, requiring a fair
rental and imposing conditions to pre-
vent the evils which experience has
taught us to expect from unregulated
monopoly. / am very glad indeed ia
have your statement that the United
States does not part with this kind OF
property without fair leases. That is
Continued on Page Two.