The Detroit times., 1912-03-15
u U, S S, MUST ACT ACT AGAINST
MONOPOlISTC CONTROL
OF POWER RESOURCES
Commissioners of Corporations
Smith Submits Report
To President
CITES MICHIGAN CASE
says Commonwealth Company
Controls 73 Per Cent in
Southern Peninsula

WASHINGTON. March 15.-That
lfective action must be taken against
uonopolistlc control Of the power re-
sources of the United States, Is the
declaration OF Herbert Knox Smith,
commissioner of corporations. IN a
report he has submitted 10 the prest.
dent on the water power develop
ment in the United States. He says
effective means OF applying a definite
public policy must come through ;se
control of the poYer- site that II eau.
not be applied through fixing the price
OF water power independently of fuel
power.
Mr.. Smith says in the southern pen
insula OF Michigan the Commonwealth
Power Railway 4 Light Co. controls
20 per cent OF the commercially de-
veioped, together with probably 7l.OOG
horsepower more undeveloped. Plac-
tically similar conditions exist IN
Montana. Colorado. Georgia and at
Niagara Falls. In California six groa;
power corporations control over 80
per cent OF all the developed water
power i'm the state; in Washington
two companies control 40 per cent
OF all developed power. In
South Carolina the Southern Power
co. owns 10 per cent of the total COM
mercially developed.
Tho ranOrt gaVC mart
There are 10 groups of interests
each controlling, or influencing
through mutual directors and officers,
over $4,000 h. D.. developed and under
construction. BY far the widest
sphere of influence is that Of the Gen.
eral Electric Co. primarily an cleo
tric-equipment concern The General
Electric influence takes three forms:
First, by absolute control; second,
through interownership Of stock and
community of directors; third, simply
community of directors. In the first
class there are six companies, with
about $4,000 h. p; in the second
class s, with 41g h. p: and in the
third class 10, with 437 900 h. D.; n
total OF $4,000 h. p. OF devel
oped water power In Is different
states. In addition, this group con-
trolls about 1000 h. D., undeveloped,
a grand total of over a million and
half horsepower.
Next are the Stone & Webster in
terests. which, own or strongly infiu-
ence 27s,0e9 h..p., chiefly in connec-
ton with public-service concerns.
They exercise control. largely
through management rather than
ownership, over SO or 60 companies.
Eight have water power. the largest
being on the Mississippi river and IN
the Puget Sound region.
"The other groups are the Hydraul-
ic Power Co., OF Niagara Falls. $4,000
h. D.; the Pacific Gas & Electric CO.,
with over $4,000 h. p. developed and
the dominating factor in a large por-
ton OF California: the group known
as the -Foote- Hodenpyl-Wall
bridge interests, 100000 h. p, largely
dominating the water-power situation
in Michigan and also active in Maine
and Oregon: the Southern Power Co., |
I01 900 h. D., which owns the great
bulk of the commercially developed !,
power in South Carolina: the S. Nor
gan Smith interests (Georgia), 76,-
900 h. p: the Brady interests (Ten-
nesseel. 10000 h. p; the United Mis-
souri, River Power Co.. $4,000 h. p.
which, with the Butte Electric Power |
Co General Electric group. prac- I
tically dominates the power situation !
in Montana: and the Telluride Power |
Co. Colorado, Idaho. and Utah, &c.. |
900 H. D. These last-named nine in !
terests also include under their sinfiu-
ence 1000 h., p. undeveloped.
Thus 10 interests, excluding dupli
cation, control or strongly influence
1 ,S21 900 h. p. developed water power.
about 80 per cent OF the total CONNER
cial power In the United States, to !
gether with l,449,000 h. p. undevel.
oped."