The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1909-11-01
CHIEF FORESTER PiNcHoT OUT.
LINES THE PLANS or THE
GOVERNMENT.
UNITED PERMIT SCH[Mt
Writes Letter to Colonel Hiaqinson
Setting Forth That He Has No De-
sire to Prevent or Retard the Devel-
opment Of Power by Private Capital,
but Would Regulate Matter.


Washington. Oct. 31.-The practice
of the government in granting water
power concessions is outlined by Gift
ford Pinchot, United States forester.
liz a letter written to Colonel II. l..
Higeinson of Boston. Mass, director
of the General Electric company. The
letter takes the form OF public
statement and is significant by wide
spread interest in the water power
question. Mr.. Pinchot seeks to en-
phasixe particularly that he does not
wish to retard the development of wa
ter power by private capital. He
makes clear the point that the re-
+ newal Of permit at the end of 50
years Is at the option of the govern
ment: that ii is. by statute. revocable
by the secretary of the interior. but
unless revoked. continues 80 years,
when it terminates without any spc-
cial revocation. but may then be re-
newed at the option of. and on condi-,
tions to be fixed by the govern
ment.
The Letter.
The letter follows:
MY dear Colonel Higginson: Your
letter of October is received. You
will be glad to know that | have beei.
misquoted as to the statements you
mention. First OF all, / have no de-
sire TO prevent or retard the develop
ment of water powers BY private
oh he
rcivate capita'. In my Judgment. un-
- the proper governmental control
and not by the nation or the states.
Secondly 1 have not said either
privately 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. But no one
can deny there is a marked tendency
toward practical concentration and
control of the hydro-electric develop
ment over very wide areas. In some
cases this concentration may be
mere community of interests eyi-
deneed and made effective by direct
crates in several legally distinct cor
porations held by the representatives
terests.
Other Cases.
I'm other cases it appears to be
brought about b. closer intercor-
porate relation, and in still other
cases. as. for instance. i'm Central Cal
ifornia, there seems to be single cor
porate control of a large and populous
territory. The report of the commits
sioner OF corporations. transmitted to
congress with President Roosevelt's
message of January Is, 1909. vetoing
bill OH. II. l7701) to license the
building of "A dam in James river,
Missouri. establishes these facts.
'"Thc increasing radius of practic-
able electric transmission and the re-
cent financial history of the country
as to consolidation of other kinds of
business seems to justify the belief
that there Is a. strong tendency to-
ward concentrated control of hydro
electric development in the United
States. ] do not say trust has been
formed. But the conditions are fay-
orable- think it 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 to
this vital necessity of life. This may
be done by giving concessions limited
in time. requiring fair rental and
imposing conditions to prevent the
evils which experience has taught us
to expect from unregulated monopoly.
l am very glad. indeed. to have your
statement that the United States
should not part with this kind Of
property without fair leases That
is precisely the position the forest
service has taken.
Form Of Permits.
4 enclose copy of the form of
permit (called special use agree
ment) now used by the forest service
in granting all water concessions in
the national forests. l call your at
tention to the fact that this permit re-
auires that the construction be begun
and completed within reasonable
time fixed in accordance with eayi-
neering conditions. in order to pre-
vent the speculative holding of un-
developed sites: that small annual
mileage and acreage charge be paid
during construction for the same rea-
son; that a reasonable annual charge
in proportion to the electrical output.
nominal amount at the outset and
gradually increasing by moderate in
crements in successive five-.ear per-
iods. be paid after operation begins.
with reasonable deductions ON account
OF other than national forest land
used by the plant or forming part of
cha aud in nr1or -.