East Oregonian : E.O. (Pendleton, OR) 1888-current, 1912-03-16

II street railways, a number of cleo |
trio light and gaslight companies and |
number of fuel gas companies in
Pittsburg, Pa, and vicinity.
in this maze of interrelationships,
ranging from practically joint con-
troll down to personal association in
common directorates, is clearly re-
vealed the drift of water power and
public utility corporations under the
control of few very powerful inter-
ests. These connections, some strong
er and some weaker, suggest a favor
able condition FOR very small num-
Der of men to consolidate very large
interests whenever they may decide it
to their advantage to do so. This in
terlocking of interests through direc
tors, while not necessarily indicating
a purpose of monopoly, certainly af-
fords an incentive and means to
combination.
safe Policy Could Be Established.
With respect to the undeveloped
water power under the control of the
public, either the national govern
ment or the states, it is apparent that
an effective policy can be established
by which the public can either itself
develop such power or control its de-
velopment by private parties in such
manner as to retain for the public its
proper share of the benefits derived
| from the natural resource. Thus, If
| the power is developed by the public
and sold at the price of fuel power,
the public treasury will receive the
profit arising therefrom. If on the
| other hand. private parties develop
and operate water powers, the public
can still, by charging a proper rental
secure its share of the benefits inher-
ent in the resource
The important fact which the bu-
reau desires to emphasize here is that
] the one point at which this right or
the public can be exercised is in the
resource itself. the power site, and not
by any attempt to regulate the price
of power. Thus, in the case of pri-
vate operation of water power privil-
eges, the government can charge a
rental for that right commensurate
with the natural advantages of the
power site. Such rental, moreover,
can be adjusted from time to time to
insure the public increased compen-
sation to correspond to any increase
in the value of the power site which
may aside from increased settlement
of the country or other causes. In
some cases. of course, a lease without
rental charge might be desirable for a
limited period in order to encourage
development of inferior sites. which
might otherwise not be utilized
sale of Sites Possible.
1T is not intended to assert that
exceptional conditions may not in
some cases justify the outright sale
of power sites. 1t is proper to point
out, however, that the lease or renta
system appears to present distinct ad'
vantages particularly that of retain
ing in the public hands the ultimate
control of the resource. An import,
ant consideration in this connection
is that, broadly speaking, water pow
er is a resource of an inexhaustiblt
character, and that therein it differ:
radically from almost all of the Other
, natural resources. which are expend
ed in their using.
Whatever method of control ovel
water power resources may be deem
ed most equitable and expedient, it /!
imperative that definite policy 10y
the federal government and the states
, be speedily adopted. first. because o
the obvious desirability of utilizing al
, commercially available water power
and. second, because of the possibilit,
, of public water powers passing abso
lutely into private control"