The Barre daily times. (Barre, Vt.) 1897-1959, 1912-03-15
REPORTED TO PRESIDENT
Commissioner of Corporations Herbert
Knox Smith Said That Concentration
of Water Power by Large Inter
terests Is Increasing Rapidly.

eminent should preserve title to the re,
naming power sites and develop them tC
prevent possible monopolization OF
public utility companies. A full report
of the commissioners investigation OF
water power development was presented
to the president yesterday
Commissioner Smith directs particular
attention TO the increasing utilization OF
water power concerns and public service
| agencies, such as street railway and
/ Lighting corporations, and oftentimes
/ banks as well. The connection between
such concerns he regards of serious pub
/ lie significance The concentration Of
control over water powers, the commits
sioner declares, is exercised partly by
direct ownership of stock, but mainly
through interlocking directorates.
The rapidly increasing concentration
OF water power control about which the
commissioner sounds warning may be-
come. he saws, the nucleus for monoD-
oily OF both water and steam power. If
the water power cannot meet the entire
demand of a given locality, he points
out that the owners can acquire anXil-
larry fuel plants and handle water and
fuel power over the same distributing
lines and thus complete commercial
power monopoly might gradually be
bnilt up--in fact already exists in -
number of communities.
Ten groups Of interests, with the Gen
eral Electric company as the most pow
erful are declared by Commissioner
Smith to control or strongly influence
about 80 per cent of the developed com
mercial water power of the United
States. These ten groups themselves are
more or less inter-related, with resultant
growing community OF interests. In this
connection the commissioners report
saws;
"In this maze Of inter relationships
ranging from practically Joint control
down to personal association in common
directorates, il clearly revealed the drift
of water power and public utility cor
porations under the control of few
very powerful interests. These connec-
tons. some stronger and some weaker,
suggest favorable condition for a very
small number Of men to consolidate very
large interests whenever they may de-
eide it to their advantage to do so. This
OF interests through direct
ors. while not necessarily indicating
pun lOHt VI HibHNllbjAs certainty ANU ~ {
an incentive and means to combina-
ton"
Mr.. Smith. urging the immediate |
formulation Of a definite policy OF de- /
the remaining water power /
sites on the public domain, recommends I
generally speaking that the government /
retain the ultimate control Of these +
sites. They should be developed at once,
he declares. not only to conserve the +
fuel supply of the country, but because
they are fast passing into private con.
troll It is estimated that the water
power now in use saves 33.000000 tons
Of coal annually, and, Mr.. Smith adds,
the water power resource is not ex-
pended in its using
The problem Of development the COM
missioner continues. cannot be solved by
fixing by law the selling price of water
power by itself which. in any event,
will be controlled, by the cost of fuel
power Recognizing that the most eff
icient use of water power requires a &
considerable degree of unified control
lie commissioner makes this recon-
nendation for the development of public
water powers:
'oThe public can either develop and
operate the sites. selling the energy at
market rates, or the public may lease the
.ites at rental fairly representing its ,
natural value The commissioner fa- {,
,ors the rental system.
The water power Of the country, de-
.eloped and practically capable of devel-
,pment at this time, probably does not
xceed 25.0O0,O00 horsepower Mr. Smith
avs. The total developed water power
o.dav is about 6.000,000 horsepower.
The total stationary power used in the
'nited States-steam, water and gas I
) probably over 3O000O00 horse power.
The bureau of corporations. in its in
found concentration of wa. {
er powers, according to the report, in |
hree distinct phases. First there was
Capitalization of control in each i'm q
ortant locality; secondly, large inter g
ats influenced number of those local 5
and finally there was found c
rowing relationship among the big in q
erests. q
"1n California six great power cor /
orations, of which the most important \
the Pacific Gas and Electric company 5
with 1888 horsepower together con-
roll 375000 horsepower-over so per
4nt. Of all the developed waterpower in
he state" Mr.. Smith says in discussing
zeal concentration.
"In Washington two companies con
rol 100000 horsepower. or about 10
er cent. of all developed waterpower.
In South Carolina. the Southern Pow
r company owns about lOl 900 horse
over or - per cent. of the total COM
lereially developed with 10000 horse.
over undeveloped.
I'm the southern peninsula of Michi-
an. the Commonwealth Power, Railway
nd Light company controls $1,000 horse
over or 70 per cent. of the commercial
developed, together with probably IL
10 horsepower more undeveloped.
practically similar conditions exist
Montana. Colorado, Georgia and at
iagara Falls.
More important than this LEGAL cen
alization. the commissioner declares,
e the operations of ten large groups
interests which possess control or
tiuence over .62i .0a5 developed horse
,wer about 60 per cent of the com
ercial waterpower in the United States
gether with l.440,000 horsepower I'M
veloped.
The General Electric interests, the re- -
'rt declares, control or influence $4,000 +
'rsepower of developed waterpower in