Los Angeles herald., 1909-11-01
WATER POWER
TRUST SCORED
CLIFFORD PINCH0T OUTLINES
FEDERAL POLICY
SAYS PRIVATE CAPITAL SHOULD
DEVELOP GRANTS
Chief Forester Denies Accusations and
Admits Corporations Seek to
Control Hydro-Electric
Resources of Nation
tcontlnuea rom Page one,

precisely the position the forest SER
vice always has taken.
Federal Requirements
IT incIose a copy of the form of per
NIT (called a special agreemenD now
used by the forest service in granting
all water power concessions in the
national forests.
81 call your attention to the faci
that this permit requires that con-
struction be begun and completed
within a reasonable time fixed in ac-
cordance with engineering conditions
to prevent the speculative holding OF
undeveloped sites; that a small annual
mileage and acreage charge be paid
during construction; that reasonable
annual charge in proportion to the
electrical output, a nominal amount
at the outset and gradually increasing
by moderate increments in successive
five-year periods, be paid after opera
ton begins, with reasonable deductions
on account of other than national for
est land used by the plant or forming
part of the watershed, and in order to
encourage the building of storage res
ervoirs on account of water storage
by the permitee; that timber cut or
destroyed in construction be paid for
at a reasonable stipulated price; that
to a reasonable stipulated fraction of
it's full capacity. in order to prevent
artificial scarcity and the resulting
high prices to consumers, and that
power be sold to United States, when
requested, at as low price as to any
other consumer.
Authority for Permits
cit is also required that the permit
no nsfa "a
transfer of government contracts is
expressly prohibited by statute; that
the permitee must use reasonable pre-
cautions to protect the forest by fire
fighting, ETC.; that the permit shall
terminate at the end of fifty years, but
may then be renewed on such condi-
tons as the government shall then fix.
but that in fixing them neither the
permit itself nor the franchises, stock
or bonds of tibet permitee shall be con-
sidered, but only the actual value at
that time Of physical works construct
ed under the permit; this in order that
future generations may not be bur-
dened to pay dividends on inflated Sc
curities.
"These permits are issued under the
authority of a specific statute (Act
February Is, 1901, 81 Stat 1900.
"The attorney general has expressly
given his opinion that the statute en-
powers the government to impose the
construction charges and other conui-
tons contained in the permit Opinions
OF attorney general, vol. 20, page 421),
and the United States circuit for Col
orado has by express order directed
the receivers of the Las Animas Pow
er company to pay the charge. The
administration of the statute, so far as
national forests are concerned, was
transferred to the department of ag-
riculture by the act of February IA,
1905 (S3 Stat, page 2S), but still re-
mains in the interior department, so
far as reserved public lands and ma
tional parks are concerned.
"Under the express statutory author
ity so conferred the forest service is
sues permits, the provisions of which
have summarized. I hope you will
agree with me that they are fair
leases CLIFFORD PINCHOT,
Forester"