The Montgomery tribune. (Montgomery City, Mo.) 1892-1910, 1909-01-22
PRESIDENT DECLARES ELECTRIC
COMPANIES ARE FORMING
WATER POWER MONOPOLY.
SCORES ATTEMPT At GRAB
Corporations, Unless Stopped, Says
Roosevelt, viii Tighten Grip on
PubIic-Vetoes a James River
(Mo.) Dam Bill.

washington, Jan. tne
James River, in Stone County, Mis-
souri,, as his text, President Roosevelt
Friday sent to congress a message
criticising its conduct and disclosing
what he calls the operations of he
electric companies to obtain a mo-
nopoly of the developed water power
of the nation.
Describing the scheme as greater than
the oil Trust, he says: The people of
the country are threatened by a mo-
nopoly far more powerful, because In far
closer touch with their domestic and In
dustrial life, than anything known In our
experience
The message accompanies the Presi-
dents refusal to approve a bill granting
perpetual rights to William II. Standish
to construct a dam on the James River
and divert its waters to create electric
power. He vetoes the bill because It
does not limit the grant to at least hfty
years and provide that the government
shall make a reasonable charge for the
grant.
Such requirements, he declares. should
be made in the James River grant and
in all other water power grants to pre-
vent the water power monopoly from
being established without any power In
the federal government to control 1t.
Reopens Fierce Fight.
The message reopens a fight which
waged fercely between President Roose-
welt and Congress last winter. At that
time he vetoed several water power
bills for the same reasons he gives FOR
his present action.
The Senate Committee on Commerce
disagreed with him then and presented
a long legal argument calling the Presi-
dents policy "a new departure" and
~contending that the Federal Government
had no authority to impose a charge
for water rights privileges.
Regarding the committees action the
President In his message says:
when the public welfare is involved
Congress should resolve any reasonable
doubt as to its legislative power in
favor of the people and against the seek
ers for a special privilege"
Describing the water-power monopoly
which he says threatens the country, the
President says in part:
Information collected by the Bureau
Of Corporations shows that eleven largo
concerns, of which the General Electric
Company and the Westinghouse Electric
and Manufacturing Company are the most
important, now hold water-power in
stallations and advantageous power sites
aggregating $50, 900 horsepower, where
the control of these concerns is practice
ally admitted. This Is over II per cent
Of the total developed water power of
the country.
Interests Now Intrenched.
Further evidence of a very strong ma
ture as to additional inter-corporate re-
lations, furnished by the bureau. leads
me to the conclusion that this total
still other evidence, though less conclu-
sive, nevertheless affords reasonable
ground for enlarging this estimate by 9
per cent additional.
"In other words, it is probable that
these IL corporations directly or indi-
rectly control developed water power
more than a third of all the developed
water power in the entire country.
This astonishing consolidation has
taken place practically within the last
five years.
eth movement is still in it's infancy,
and unless 1t is controlled the history of
the oil industry will be repeated in the
hydro electric power industry, with re-
suits far more oppressive and disastrous
for the people. 1t is true that the great
bulk Of our potential water power is as
yet undeveloped, but the sites which are
now controlled by combinations are those
which offer the greatest advantages and
therefore hold a strategic position.
Corporations Are United.
THE great corporations are acting
with foresight, singleness of purpose,
and vigor to control the water powers of
the country. They pay no attention to
;. state boundaries and are not interested
In the constitutional law affecting navi-
gable streams except as it affords what
/ has been aptly called a twilight zone :
where they may find a convenient refuge
from any regulation whatever by the
public. whether through the national or
state governments.
lit is significant that they are oppos-
= Ing the control OF water power on the
Desplaines River by the State of Illinois
with equal vigor and with like argu-
ments to those with which they oppose
the National Government pursuing the
policy l advocate.
Their attitude is the same with refer
i ence to their projects upon the mountain
streams Of the West. where the juris-
diction of the Federal Government as
! the owner of the public lands and ma
[ tional forests is not open to question.
They are demanding legislation for
S lands for reservoirs, conduits. power
houses and transmission lines to replace
the existing statute which authorizes the
administrative offices of the Govern
ment to impose conditions to protect the
public when any permit Is issued.
Sees Hand In Congress.
9 Several bills for that purpose are now
S pending in both houses. among them the
: kbill. s. 6s26. to subject lands owned or
L held by the United States to conoemna-
ton in the state courts, and the bills.
II. r. 1896 and S, 2661, respectively. to
grant locations and rights of way for
n electric and other power purposes
through the public lands and reserva-
lions of the United States.
THESE bills were either drafted by
representatives of the power companies,
or are similar in effect to those thus
drafted.
ION the other hand. the adminlstra
a ton proposes that authority be given to
= Issue power permits for a term not to
exceed fifty years, irrevocable except fol
= prevent revocation would remove the
d only valid ground OF objection to the act
r OF 1901, which expressly makes all per-
mits revocable at discretion"
The Presidents Uitimatum.
The President says he will sign nc
water-power bill which does not contain
!, provisions making the grant an option
IL which must be used within a reasonable
Ie time, naming an official who shall annu
!, the grant II II Is not used in accordance
70 with the terms named in the law. nam.
n 4 l.- ~ EAAta h sac that la nAaaA ~
!. tanning the grant produce the maximum
8 amount OF navigation and power. speci.
Is Tying a license charge small at the out
set, but adjustable SO as to retain con.
troll of the water power for the public
.pecifying a definite time when the gran
le shall expire and providing that proc
/. that fha narznn hnldtng tha ~atar rich