The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1912-03-19
of Control BY
large Interests in Impor-
tant Localities Increasing
So Rapidly That Preserva-
ton of Title BY Government
IS Recommended
1Bv the Associated Press.)

W~isnincton. d. c., March If
Concentration of control over water
p,arrs by large interests IN import
.n. .oeaiitics is increasing 50 rapidly
t1I Herbert Knox Smith, Commits
FI..er Of Corporations, has reported
Nv resident Taft thai the govern
u,.t S&ould preserve title to the re-
ul.aIps power sites and develop
thnm - prevent a possible monopoli-
z.tou Of public utility companies. A
FL. report of the commissioners in
y.a ua4tion Of water power develop
rlaat VAS presented to the President
toGls
tnunissioner Smith directs partic-
n4ie attention to the increasing af-
ti.lttpu OF water power concerns and
puaiit service agencies, such as street
runway and lighting corporations, and
o.'rusimeS banks as we'll. The con-
nrolion between such concerns he re
Gtrls Of serious public significance.
Tr concentration OF control Owe
Nter powers. the Commissioners de-
o.trns. is exercised partly by direct
uwnrrship Of stock, but mainly
through ~interlocking directorates.
TIE rapidly increasing concentra-
ton of water power control about
when the Commissioner sounds a
warning may become, he says, the
nucleus for a monopoly of both water
tnI steam power. If the water
power cannot meet the entire demand
of , given locality he points out that
"a" NnerS can acquire auxiliary fuel
plants and handle water and fuel
power over the same distributing
lll"S and thus a complete commercial
pgWer monopoly might gradually be
h'tt.t up-in fact already exists in a
niaprr Of communities.
Ten great groups of interests, with
The General Electric Company as the
most powerful. are declared by Com
missioner Smith to control or strong
III lafluence about so per cent of the
dase.oped commercial water power of
Tho United States. These ten groups
III "~sSeIyes are more or less inter
i~or>in~ with resultant growing COM
fiultty of interests. In this COnneC
i'"a The commissioners report says:
In this maze Of inter-relationships,
ranging from practically joint control
town - personal association in COM
Hlrh difectOrateS, is clearly revealed
thA arltt ot water power and public
UtGl,, corporations under the cOntrOl
90 few very powerful interests.
ines" connections, some stronger and
Some weaker, suggest a favorable
cog iltion for a very small number
81 iaen 70 consolidate very large in
forests whenever they may decide il
AAi'i duHdildSc 10 uO So. IL III
tr~F-iocking of interests through di-
~r"ctnr3, While not necessarily indicat-
ing 4 purpose of monopoly, certainly
affords an incentive and a means to
combinations"
Mr. Smith, urging the immeCiatt
formulation of a definite policy o
~"eEe!oping the remaining waite
po"er sites on the public domain
ree"mniends generally speaking tina
IN government retain the ultimate
control Of these sites. They SHOULD
% developed at once, he declares, no
only 10 conserve the fuel supply o
shN country. but because they ar
iasl passing into private control. /
Is innate that the water powe
no" III use saves $4,000, OO0 tons o
r"ai annually and, Mr.. Smith adds
'he water power is not ex
pended in it's using.
he problem of development, tn
commissioner continues, cannot b
So,Fed by fixing by law the sellin
priGe or water power by itself, whicl
~ any event, will be controlled, b
me cost Of fuel power. Recog
"'HihS that the most efficien
use ot water power requires a con
SIDERABLE degree OF unified contro
the Commissioner makes this recon-
""hdation for the development Q
phhllc water powers:
ne uhh can either develop an
"pefate the sites, selling the energ
:" market rates, or the public ma
,""Se the sites at a rental fairly repre-
"hdHg It's natural value" The Com
MISSIONER favors the rental system.
ne water power Of the country
aestioped and practically capable G
e'e'ophient at this time, probabl
u"eS not exceed 25.O0O,OOO hors
po"Fr' Mr.. Smith says. The total dc
1open water power today is abol
;'o''ooo horse power. The total sta
,ond'F power used in the Unite
- steam. water and gas
''o'y over 10000, 900 hors