El Paso herald. (El Paso, Tex.) 1901-1931, 1912-03-15
SOUNDS WARNING AGAINST WATER
POWER CONTROL BY CORPORATIONS

caIty he points out that the owners
can acquire auxiliary fuel plants and
I handle water and fuel power over
the same distributing lines and thus
+ q complete commercial power monOpO-
ly might gradually be built up in fact
already exists IN a number Of COM
munitfes.
Ten Groups MOnOPOIIze Powers.
Ten great groups Of interests, with
the General Electric company as the
most powerful, are declared by COM
missioner Smith TO control or strongly
influence about 90 per cent of the de-
Feloped commercial water power Of the
United States These ten groups
themselves are more OF less inter-relat-
ed with resultant growing cOmmUni-
y Of interests.
Suggests a Remedy.
Mr.. Smith, urging the immediate
formulation of a definite policy OF de-
VeIoping the remaining water power
sites on the public domain recon-
mends generally speaking that the gov
eminent retain the ultimate control OF
these sites. They should be DEVELOPED
at once. he declares, not only to con-
serve the fuel supply Of the country.
but because they are fast passing into
the water power now in use saves So
guUsOOO tons Of coal annually and, Mr.
smith adds, the water power resource
IS not expended 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 VIII be controlled, by the COST
OF fuel power.
Recognizing that the most efficient
use Of water power requires a con
siderable degree OF unified control. the
commissioner makes this recommends
ton for the development Of public
water powers.
The public can either develop and
operate the sites, selling the energy at
market rates, or the public may lease
the sites at q. rental fairly represent
ing its natural value The commits
sloner 1aVors the rental system
The bureau Of corporations, in its
Investigations found concentration of
water powers, according 20 the report,
IN three distinct phases. First there
was Capitalization Of control in each
important locality; secondly, large in
terests influenced a number of these
local concerns, and finally there was
big interests,
How it is Controlled.
IN california, six great power cor
pOrations- Of which the most important
is the Pacific Gas and Electric com
pany, with 1888 horsepower. to-
gether control $4,000 horsepower
over so per cent of all the DEVELOPED
WauerpoWer in the state" Mr. Smith
says IN discussing local concentration.
In rs ashlngtOn two companies con
troll 10000 horsepower, or about 20
per cent Of all developed water power
In south Carolina, the Southern
horsepower, or 80 per cent Of the to-
tai.
In the southern peninsula Of Michf-
gan, the Commonwealth Power. Rail
way and Light company controls So
000 horsepower or IS per cent of the
commercially developed, together with
probably 1000 horsepower more IN
developed.
Practically similar conditions ex-
ist in Montana, Colorado, Georgia and
at Niagara Falls"
More important than this local cen
tTaliza ton the commissioner declares,
are the operations Of ten large groups
of interests which possess control or
influence over 1921, 900 DEVELOPED
horsepower about so per cent OF the
commercial WaterpOWer in the United
States together with 1,449.0O0 horse
power undeVelOped-
The General Electric interests the
report declares, control or influence
S3S.OOO horsepower Of developed water
power in eighteen different states and
$4,000 horsepower Of undeveloDed re-
sources. a-grand total of over & mill
the Stone and Webster interests" the
report continues. which either own
or strongly influence 27S,O00 horse !
power chiefly in connection with pub
lie service concerns. They exercise /
control, largely through management I
rather than ownership, over 55 or. go I
companies Eight have WaterpOWer /
Jne largest being on the Mississippi /
river and In the Puget Sound region. I
discussing an increasing affiliation /
OF WaterpoWer concerns and public /
service companies, the commissioner I
says:
The companies in the General EIee-
uric group control street railways in l
16 towns, electric lighting plants In 4