Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-04-18
Alleged Organised Support.


There is grave danger that this bill
will pass. 1t is supported by an organ
lied and vigorously conducted campaign
in the west. Western promoters and their
powerful financial hackers in the east
may be expected to favor it.
''It is. unnecessary to discuss the minor
call attention to the fact that the Smoot
bill requires the state to retain the fee
simple title. This would permit leases
for 800 years. 1t also requires the state
to undertake an underlined system of
regulation and authorizes 1t to fix the
price to consumers for ten-year periods
This adds nothing to the police powers
Of the states.
THE Smoot bill would give to the big
water power interests precisely what they
want and sought in vain from the last
Congress and administration-absolut
immunity from all effective federal regu-
latfon and control. It would put the
users of water power completely in the
Senator Smoot Explains.
Senator smoot first took up the state
ment that the water power interests in
the west favor this bill.
Outside of the protest by the National
Conservation Association" ne said, the
only protests against the bill which |
have received come from the big water
power interests in the west. They say
they do not want this bill passed, and add
that they would not want to take out
contracts for the development Of water
power under this BILL
The Utah senator contends that the re-
strictions on the contracts which the
states can make for the development of
the water power. as specified in the BILL
protect them effectually against monop-
oily.
II the states take over the water power
sites, 1t is provided, they are in the first
place, not allowed to part with the fee
simple title. And no contract for the use Of
the water power is to be made by a state
except it reserves to some board or COM
mission under the control OF the state the
authority to fix reasonable rates for the
sale of the power developed at intervals
of ten years. Public opinion, it is believ-
ed, will force reasonable rates.
Forbids Combinations.
The state or territory taking over the
sites is also required by law or express
stipulation to forbid any person or cor
poration with whom 1t may contract for
the use Of such lands to enter into any
combination or consolidation in restraint
of full and unrestricted competition in
the business Of development. distributing
or selling power, and which may have
for its purpose or effect the monopoliza-
ton Of the business in any locality and
the contract Is to be Cancelled II this pro-
vision is violated.
Senator Smoot pointed out that the
water power interests object to these
conditions, because. they claim, it makes
any contracts they could make for the
development of water power very uncer
tain. They point out that rates might be
fixed so high or SO low as to be confisca-
tory.
AS to the assertion that the limitations
of the bill would not prohibit state from
leasing water power sites for $50 years,
Senator Smoot remarked that practically
all. If not all, of the western states limit
such contracts to fifty or ninety-nine
years, and that II that Is not satisfac-
tory, he Is willing to have the bill SO
modified as to. prevent longtime con-
tracts.