The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1911-11-24
FULL MONOPOLY
IN WATER POWER
NOW ADVOCATED
Secretary of Interior Fisher
Takes New Stand.
PUBLIC WILL BENEFIT

Walter l. Fisher, Secretary of the In
terror. put himself on record yesterday
before the National Waterways Com
mission as being opposed to putting re-
strictions upon monopoly of hydro-elec-
trio power He declared that water
power was. essentially a monopoly"
and in granting permits for licenses for
developing the power of streams, the
Secretary declared that he would not
put into the contract any restrictions
as to monopoly Furthermore, he de-
clared that the monopoly was in some
instances and advantage to the public
SMALL RIVALS OPPOSED.
He declared that only the larger COM
panfes could be relied on to give the best
service to the entire community and to
make the necessary extensions into
sparsely settled sections. and to serve all
of the people of a community. In view
of the demand which the governing au-
thorities would impose upon a corpora
ton seeking a permit, he thought 1t was
only due the grantee that II should not
be harassed by small competitors. He
explained that in the matter Of public
utilities in municipalities IT had been
demonstrated that the smaller companies
sought the thickly settled portions OF
community. building small plants and
supplying limited territory and enjoying
big profits.
Secretary Fisher had been called before
the national waterways commission to
give the commissioners the benefits Of
his experience in dealing with the water
demned the Smoot bill introduced at the
last session, and declared in favor OF
State control only by Federal assent as
the best method. until such time as the
Federal government might feel II neces-
sary to take the control. He declared
that he would fix the tax or compensa-
ton upon the power companies at a nomi-
nal figure. mainly for preserving the
power to regulate, and not for purposes
of revenue.
The Secretary declared that the gov
eminent should have in mind in fixing
the rate of compensation TO be paid by
the power companies the interest OF the
investor in water power securities.
They should not only provide that the
investment should pay a fair rate OF
interest and profit. but go a little further
and give such return as would make the
investment an attractive one and insure
the rapid development Of the water
power of the country. He went on rec
ord in opposition to revocable permits.
He said the present policy OF the gov
eminent in giving revocable permits was
indefensibIe.
Capital Il Timid.
The power companies found Il impos-
sible to get the necessary capital to
carry on the work OF development with
out paying very high rates for their
money. He declared that 1t had never
been the policy Of the government to
cOnfscate property of the power conf
pany by enforcing revocation. but that
so long as the fear Of such revocation
hung over the investors the effect would
be the same as II the government policy
were actually to confiscate property.
In the course of a general economic
discussion, the Secretary declared that
he was opposed to taxing public utilities.
except so far as necessary to regulate
them, because the effect Of II was to
increase the price to the consumer. He
said that public utilities corporations
really exercised the functions Of govern