Weekly journal-miner. [volume] (Prescott, Ariz.) 1908-1929, 1912-03-20

rapidly that Herbert Knox Smith,
Commissioner OF Corporations, has
reported TO President Taft that the
government should preserve title TO
the remaining power sites and devel-
op them to prevent a possible mon
oplzation of public utility companies.
" iull report oi the Commissioners
investigation of water power dcvcl-
opmcnt was presented to the Presi
dent today
Commissioned Smith directs par
ticular attention To- the increasing
aifliation OF water power concerns
aud public service agencies, such as
street railway and lighting corpora
tons, and oi,cntimes banks as well.
The connection between such con
Germs he regards OF serious public
significance. The concentration OF
control over water powers. the Com
missioner declares. is exercised main
ly through intcrIocking dirccterates.
The rapidly increasing concentra-
ton Of water power control about
which the Commissioner sounds a
warning may become. he says. the
nucleus for monopoly OF both wat
or and steam power. II the water
power cannot meet the entire de
mand OF given locality he points
out that the owners can acquire
auxiliary fuel plants and handle wat
or and fuel power over the same dis
tributing lines and thus "A complete
commercial power monopoly might
ready exists in number OF com
munities.
Ten great groups Of interests,
with the General Electric Company
as the most powerful. are declared
by Commissioner Smith to control
or strongly influence about 90 per
cent OF the developed commercial
water power of the United States
These ten groups themselves are
more or less intcrrelated. with re-
sultan growing community of in
trrcs,s In this connection the
Commissioners report says;
In this maze of intcr-relation-
ships, ranging from practically joint
control down to personal association
in common dircctoratcs. is clearly
Al. In 4
and public utility corporations under
the control of a few very powerful
interests. These connections. some
stronger and some weaker, suggest
a favorable condition for a very small
number of men To consolidate very
large interests whenever they may
decide it To their advantage to do
so. This interlocking Of interests
through directors, while not neces-
sarily indicating a purpose of monop-
oily certainly affords an incentive
and a means To combination"
Mr. Smith urging the immediate
formulation Of n definite policy of
developing the remaining water pow
.er sites on the public domain. re-
commends generally speaking that
the government retain the intimate
control OF these sites. They should
he developed at once, he declares.
not only to conserve the fuel supply
of the country. but because they are
fast passing into private control II
is estimated that the water power
now in use saves 100000 tons of
coal annually. and Mr.. Smith adds.
the water power resource is not
expended lin its using
The problem of development. the
Commissioner 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. Rccogniz-
ing that the most efficient use of
water power requires a considerable
degree Of unified control, the Com
missioner makes this recommeoda-
hon for the development OF public
water powers:
"The public can either develop
and operate the sites. selling the
energy at market rates. or the pub
lie may lease the sites at rental
fairly representing its natural value"
The Commissioner favors the rem
tai system
The water power Of the country.
developed and practically capable of
development al this time, probably
does not exceed 25,0O0,00 horscpow-
or. Mr. Smith says. The total de
velopcd water-power today is about
6,0OO,O00 horsepower The total
stationary power used IN the United
States, steam water and gas,--is
probably over j0.0O0,OOO horse pow