Omaha daily bee., 1909-01-16
VETO FOR JAMES RIVER BILL
President Objects to Building Dam
Across Missouri Stream.
CONTROL OF WATER POWER
Executive Thinks Coming Generation.
should BE Protected from Ex-
orbitant Rates for Power
and Lights.

| OF dam across the James river In Ston
county, Missouri.
Urging the need of adopting a course Il
protect the natural resources, the president
declared the belief that the federal gov
ernment has ample power in granting
license to dam a navigable river to impos,
such conditions as 1t saw 1t. Continuing
he said:
Exhaustion or Resources.
Relieving that the national government
has this power, / am convinced that II,
| power ought to be exercised. 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 to our
experience. A. single generation will see
| the exhaustion OF our natural resources
of oil and gas and such a rise in the price
| OF coal as will make the price Of elec-
| trically transmitted water power con-
! trolling factor in transportation in manu-
featuring and in household lighting and
heating. Our water power alone, II fully
developed and wisely used, is probably suf-
ficient for our present transportation, In
dustrial, municipal and domestic needs.
Most OF 1t is undeveloped and is still in
national or state control
ITO give away without conditions, this,
one of the greatest OF our resources, would
be an act Of folly. II we are guilty Of It,
our children will be forced to pay an an
nual return upon a capitalization based
upon the highest prices which the traffic
VIII bear They will find themselves face
to face with powerful interests intrenched
behind the doctrines OF vested rights and
strengthened by every defense which
money can buy and the ingenuity of able
corporation lawyers can devise Long be-
fore that time they may and very prob
ably will have become a consolidated in
terest, controlled from the great finan-
cial centers, debating the terms upon
which the citizen can conduct his business
or earn his livelihood, and not amenabIe
to the wholesome check of local opinion.
Monopoly of Water Power.
The total water power now in use by
power plants in the United States is esti.
mated by the bureau of the census and the
geological survey as $4,000 horse power
Information collected by the bureau Of cor
porations shows that thirteen large con-
Germs of which the general electric com
pany and the Westinghouse Electric and
Manufacturing company are most i'm.
portant, now hold water power installations,
and advantageous power sites aggregating
about 1.O46ooo horse power. where the con-
troll by these concerns is practically ad-
mitted. This is a quantity equal to over
10 per cent OF the total now In use Fur
ther evidence OF a very strong nature as
to additional intercorporate relations,
furnished by the bureaus. leads me to the
conclusion that this total should be in.
creased to "a per cent; and still other evil
dence, though less conclusive, nevertheless
affords reasonable grounds for enIarging
this estimate by per cent additional. In
other words, 1t is probable that these thir-
teen concerns directly or indirectly control
developed water power and advan-
tageous power sites equal to more
than S3 per cent of the total water
power now in use. This astonishinR
consolidation has taken place practically
within the last five years. The movement
is still In its infancy, and unless It Is con-
trolled the history of the oil industry will
be repeated in the hydro-electric power in
dustry, with results 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 sides
which are now controlled by combinations
are those which offer the greatest adyan-
tages and therefore hold a strategic posi-
tion. This is certain to be strengthened by
the increasing demand for power and the
extension of long-distance electrical trans
mission.
ut Is. in my opinion, relatively unim-
portant for us to know whether or not the
promoters Of this particular project are
affiliated with any OF these great corpora
tions. II we make an unconditional grant
to this grantee our control over it ceases,
He, or any purchaser from him, will be
free to sell his rights to any one Of them
at pleasure. The time to attach conditions
and prevent monopoly is when a grant is
made.
should Have Definite Policy.
II repeat the words with which 1 con-
cluded my message vetoing the Rainy river
bill:
TN place OF the present haphazard policy
of permanently. alternating valuable public
property we should substitute a definite
policy along the following lines:
'Ftrst-There should be a limited or care
fully guarded grant in the nature of an
option or opportunity afforded within rea-
sonable time for development of plans and
for execution OF the project.
"Second-Such a grant or concession should
be accompanied in the act making the grant
by a provision expressly making 1t the duty
If the work is not begun or plans are not
carried out In accordance with the author
''Third-It should also be the duty Of some
designated official to see to it that in ap-
proving the plans the maximum develop
ment of the navigation and power Is as
sured or at least that in making the plans
these may not be so developed as ultimately
to interfere with the better utilization Of
the water or complete development OF the
power
''Fourth-There should be a license fee or
charge which, though small or nominal at
the outset can In the future be adjusted
so as to secure control in the interest of
the public.
"Fffth-Provision should be made for the
definite time, leaving to future generations
the power or authority to renew c. ex-
tend the concession In accordance with ths
conditions which may prevail at that time.
Further reflection suggests a sixth con.
dition. viz:
The license should be forfeited upon
proof that the licensee has Joined IN any
or unlawful combination In re-
straint of trade. as Is provided for grants
of coal lands In Alaska by the act OF May
2S. 1905
II viii sign no bill granting a privilege
Of this character which does not contain
the substance Of these conditions con-
slider myself bound. 81 far as exercise OF
my executive power win allow, to do for
the people. in prevention OF monopoly OF
their resources. what believe they would
do for themselves II they were in a posi-
ton to act Accordingly 1 shall insist upon
the conditions mentioned above not only |
in acts which I sign. but also In passing