Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-05-15

canals and reservoirs located on the
public domain, passed in 1891, gives the
applicant, for nothing, an unrestricted
right over the public lands, which be-
comes a permanent right If the works
are built in five years. In case they
are not built during that period the
application may be renewed, and the
government usually has reapproved It.
Based on Earlier Act
"This irrigation right of way act was
based upon an earlier act, which grant
ed rights of way for railroads, and un-
der this latter law it has been held
that these rights of way cannot be
Cancelled even at the expiration of the
five year period for failure to utilize
the same for the purposes contemplate
ed in the grant, except by an order OF
court or an act of congress. In 1895
congress extended to water power COM
panies the right to apply for rights OF
way under the act of 1891, that is, fol-
an absolutely unrestricted grant, when
ever their works were subsidiary to
the main purpose of irrigation
"These regulations for power plants
require:
81. Construction work must be
promptly started, say within three
months.
"2. Construction work must be COM
pleted within a specified reasonable
time, which may be extended only on
account of physical difficulties.
"3. Every permittee must pay a
small rental for the rights of way
granted.
"a. Every permit fixes charge for
forty years time based upon the power
output, very small at first, but gradu-
ally increasing. and provides that the
permit must terminate at the end OF
that period, and be readjusted.
50. Transfers of permits are prac-
tically prohibited except with the sane
ton Of the department.
"6. Permits may be revoked at the
discretion of the department.
Regulations Opposed
"These regulations are strenuously
opposed by the power companies Gas
indicated by the above resolutions),
who claim that they are Illegal, but to
date they have withstood this attack
The public interests would be well
served If this policy were made general
through the public domain. If power
companies ask for strategic water falls
or for reservoir sites situated in forest
reserves, which are maintained at pub
lie expense largely for the purpose of
regulating stream flow, it is but plain
Justice that they should submit to pub
lie regulations for the public welfare.
turns on its investments selects usu-
ally the best portion of a project for
construction, while the state, which
can afford to look further into the
future. would build for ultimate re-
suits and maximum development.
are being held by this holding COM
pany, including Oakland, Sacramento,
San Jose, Berkeley, Stockton, Fresno,
Alameda and, indirectly, San Fran
cisco.
Does Not Require Prophet
zone does not have to be prophet
to foresee the coming generations of
California, literally by the millions, and
including all classes from the mill
owner down to the sewing girl in the
sweatshop, paying revenues into the
Golfers of this concern for interest on
bonds and stocks-or to clearly hear
the plausible arguments of hired adj
vocates before city councils and courts
that the rates charged are necessary
for the payment of fixed charges alone.
who can honestly say that it is a
WISE policy for the state and nation to
combine in giving away, without regu-
lation. rights to be used in building up
such giant monopolies and insuring
them against competition? And yet this
policy universally prevailed until Presi-
dent Roosevelt. with the assistance of
Garfield. and Chief Forester Clifford
Pinchot, made the conservation of nat
ural resources a principle of primary
Importance in the administration of the
laws for granting rights of way.
I'm Southern California all feasible
natural opportunities for power devel-
opment have been alienated from pub
lie ownership and practically all are
held by two companies. Was there
q
ural resources!
Is Earnest in Efforts
1.-THE Roosevelt administration, guild
ed and directed by that vigilant pro-
'tector of the public interests, was ear
nest In its efforts to conserve these re-
sources, but they We're constantly Cd
posed by selfish private interests, as
indicated by the resolutions of the
western congresses noted above, and
1910 ~ per cent of the ten total feasible
power possibilities were held in pri-
Vate ownership, and less than 2 ner
cent had been utilized. 1t was found
IN that investigation that there was a
decided movement toward consolidation
OF corporate power interests.
Not an Academic Question
THAT this is not purely an academic
question, but is live Wire is proved
py the lucid prospectus of the bank
ing firm of N. w. Halsey e. Co of
New York, which deals with the prac-
tlcal end of the subject. In 1907 this
mouse was engaged in financing a bond
issue of the California Gas and Elec-
trlc company, which is "a constituent
company of the Pacific Gas and Elec-
trlc company The entire authorized
issue was for the modest sum of S45
OOO,OOO' but the proposed Immediate
Underwriting was for $9073000
Among other attractions pointed ont
ny tnat company was that the sub
scribers to the underwriting agree
ment Will be entitled to a stock bonus
OF so per cent of the bonds subscribed
ior. Ihe deal was financed along these
INES successfully. The Pacific Gas and
Electric company is a holding COMPANY.
and the word holding is correct, both
In physical and in financial sense.
In this prospectus 1t : is stated that
their holdings extend over twenty-three
counties of central California, COVERING.
=, 4S9 square miles, equal to four times
the area of the state of New Jersey.
and containing 1,S50000 people, or over
6O per cent OF the population of the
entire state of California. One hundred
and nine cities and towns. fncludine
eight of the largest ten in the state,
1.-The San Joaquin valley in this state
may be taken as typical locality. If
contains 100000 acres of fertile land
with an arid, semi-tropic climate and
great quantities of underground water
at slight depth. The floor of the val
ley is less than 500 feet above sea
level, and the crest of the Sierra Ne
vada, forty miles away, is over 10 600
feet in elevation, with heavy precipi-
tation and numerous streams draining
therefrom, all within forest reserved