The Birmingham age-herald., 1909-01-16
Roosevelt YetOGS Bill for aDam Across River Giving
 Good Reasons
.COUNTRYS WATER POWER
 IN HANDS OF MONOPOLY
President Sends Special Message To Congress Telling Why He Refuses To Grant Right To Com
 pany To Dam River.

Washington, January 15.-President Roosevelt today sent special message to the House with his veto of the bill providing for the construction of dam across James river, in Stone county, Mis- i souri, the purpose of the dam being to get water to create electric power. He declared that the movement to secure control of the water power of the ooun- 1 try is still in it's infancy.
 The Presidents message was as follows: To the House of Representatives: I return herewith without my approval House bill 17707 to authorize William H. Standish to construct a dam across James river, in Stone county, Missouri. and di vert a portion of it's waters through trn nel into the said river again to create electric power. My reasons for not sign | ing the bill are:
 The bill gives to the grantee a valuable | privilege, which by it's very nature is monopolistic, and does not contain the conditions essential to protect the public interest
 In pursuance of a policy declared in my message of February 26. 1908 (S. Doc. No. 325), transmitting the report of the inland waterways commission to Congress. I wrote on March 1S, 1908, the following letter to the Senate committee on eom- meree:
 Numerous bills granting water rights in conformity with the general act of June 21, 1906, have been introduced during the present session of Congress, and some of hoe general act authorizes the limitation and restriction of water rights in the public interest and would seem to warrant mak- | ing reasonable charge for the benefits conferred, those bills which have come to my attention do not seem to guard the public interests adequately in these re- spects. The effect of granting privileges such as are conferred by these bills. as I said in a recent messake, taken together with rights already acquired under state laws, would be to give away properties of enormous value. Through lack of fore sight we have formed the habit of grant ing without compensation extremely val uahle rights, amounting to monopolies. on navigable streams and on the public domain. The purchase at great expense of water rights thus carelessly given away without return has already begun in the east, and before long will be necessary in the west also. No rights involving water power should be granted to any corpora tion in perpetuity, but only for a length of time sufficient to allow them to con- duct their business profitably A reason able charge should, of course be made for valuable rights and privileges which they obtain from the national government The values for which this charge is made will ultimately. through the natural growth and orderly development of our population and industries. reach enormous amounts. A fair share of the increase should be safeguarded for the benefit of the people, from whose labor it springs. The proceeds thus secured, after the cost of administration and improvement has been met should naturally be devoted to the development of our inland water ways Accordingly have decided to sign no bills hereafter which do not provide specifically for the right to fix and make a charge and for a definite limitation in time of the rights conferred"
 
 turning House bill 15444. to extend the time for the construction of dam across Rainy river, I said:
 We are now at the beginning of great development in water power It's use through electrical transmission Is entering more and more largely into every element of the daily life of the people Already the evils of monopoly are becoming manifest: already the experience of the past shows the necessity of caution in making unre- strcted grants of this great power.
 '"rhe present policy pursued in making these grants is unwise in giving away the property of the people in the flowing waters to individuals or organizations practically unknown. and granting in perpetuity these valuable privileges in advance of the formulation of definite plans as to their In some cases the grantees apparently have little or no financial or other ability to utilize the gift, and have sought it merely because it could be had for the asking.
 Conditions Imposed.
 The Rainy River company. by an agree ment in writing. approved by the war department, subsequently, promised to submit to and abide by such conditions as may be imposed by the Secretary of War, including a time limit and req sonable charge. Only because of it's com pliance in this way with these condi- tions did the bill extending the time limit for that project finally become a law
 An amendment to the present bill ex- pressly authorizing the government to fix limitation of time and impose charge was proposed by the war department. The letter, veto message, and amendment above referred to were considered by the Senate committee on commerce, as ap- pears by the committees report on the present bill. and the proposed amendment was characterized by the committee as a new departure from the policy here tofore pursued in respect to Legislation authorizing the construction of such