The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1910-09-16

being the preferable one. The great
bulk OF both developed and unde.
veloped water power lies on the Pa
cifc coast, the northwest. northeas,
and the South Atlantic states. Our
power demand as measured by the
total unduplicated capacity of all
prime movers-steam, water and gas
is now at least 80 million horse
power.
"In California. for example, four
principal hyd%ro-electric companies
dominate the water power industry
and they have a very strong hold on
the most important power markets.
And between these four concerns
there is also evidence of considerable
harmony.
Conditions somewhat like this
exist in the Puget Sound territory, in
the Southern Peninsula of Michigan,
in Colorado, in Montana and in the
Carolinas. In each of these sec
tons at least one. or at most two
concerns are predominant in their
control of water powers, public SER
vice companies and power markets.
THE horse power figures, how
ever, do not fully represent the ex-
tent OIL actual commercial control.
The best powers have, of course,
been developed first. These will
always hold a disproportionally dom
inant position over later developed
and less favored powers, because of
their lower operating cost and prior
hold or the important power mar
ketS.
There is a marked progress to-
ward a mutually of interests among
public service companies generally,
electric light, power, gas and street
railway concerns. The significant
identity of officers and directors in
a large number of such companies
throughout the United States is very
remarkable.
MEN who are officers or directors
of the General Electric company, or
OF its three wholly controlled COM
panies, are also officers or directors
in twenty-eight corporations that
operate hydro-electric plants, with at
least 795 0 horse power developed
or under construction, and 600, 900
un~developed. in sixteen different
states, a total of 1.395,OOO horse
power equal to more than 25 per
cent of all the developed water pow
er in the United States in 19OS).
This group includes also over eighty
public service corporations, not
counting their minor subsidiaries;
more than fifteen railroads.; six COM
panies that use their power in the
manufacture of cotton goods, with
$4,000 hydraulic horse power de-
veloped; and fifty banks and finan-
cial houses, many of them in the
first rank Of Importance. This re-
markable financial connection in its
self is very significant. Fifty-three
General Electric men, in all. con-
stitute this chain Of connection. Nor
are these men as q rule, Of the figure
head type: their presence or a dr.
rectorate means something.
Here, then, is the present situa.
ton OF the hydro-electric industry:
1T deals with a basic necessary
and it's importance inevitably In
creases as the fixed supply of other
sources Of power decrease.
Substantial control OF mechanical
power means the exercise of a func-
ton that Is governmental in its eff.
feet on the public.
Driven by underlying economic
and financial forces, c~onceration OF
control of water powers in private
hands has proceeded very rapidly. II
is doubtful If anything can arrest
this process and a swift advance tc
a far greater degree of concentration
is entirely possible.
amy chance, then, of restraint by
competition is rapidly disappearing
certainly owe given sections, and
publie regulation is therefore an
imminent necessity.
The nation and the state will
have to use their full powers % meet
the water power situation. Let there
be no necessary hampering of de.
velopment, but let the public be on
the ground floor at the start, for q,
the start the public must grant the
power and for all time the public
will be the party chiefly interested in
its use.