New-York tribune., 1912-02-07
Who're the Joker" Enters.

D
Right there is one ot the most remark
able features ~ the plnl. II n either
tremendous Joker in one Of the nilIs or
tremendous error bv tins committee. "'
oor,r,t,tee's report in detail declared that
the "ouasi-public service corporation, i"c
creation Of which i' suggested, should b"
merely an agent of the state, operating
without profit" The b,n providing Tor
the creation OF such corporations says
they shall operate without proht 10 stock
holders but
Then II stipuIates that II the net income
permits there shall be repaid such sums
as shall have been paid ~ them 10 the cor
poration for stock, pgether with interest
1 thereon. AT any time after provision hhaH
| have been made for the payment OF all out
standing charges ard obligations and TOT
the payment into a fund Of the proper
tionate amount required for the repayment
or amortization OF the cost OF all III" I'M
movements and for contribution TO prop
or reserve fund for eucrg, g,ncies and con-
tingencies. the surplus income shall be rat
/ ably rebated and paid to the parties who
shall have paid for the benefits"
/ In other words the corporation shall
make no profits cxccp, good interest o.
Ii its sccurltics-abOut all any corporation cA-
r.cte TO get these ays-and whatever else
/ # can get together In the way Of rebates
q, tho insiders ard the distribution OF tho
urrecd mar. OF the emergency fund. To
do this N would have from the state pow
or of eminent domain Of the broadest char
actor valid against every creature EXCEPT
tb. state. which is what the private power
interests lack now-power to flood stat"
Hands where necessary, which they lack
,ou. and the prestige which comes from
:, orkIng almost in partnership with state
o.orcv Ike the Conservation Commission.
b,t without being hampered by 1t in any
undesirable way Also, they would have In
ncrpetulty what amo, Mt to contract rights
u,,b the state for the output in water OF
IN. reservoirs after the state acqyred
them. at a price bound TO be highly favor
able to them
sacandaea Case an Example.
Tho full force Of this scheme will be
coon II a specific case Is taken. The Water
crr,ly Commission recommended that the
o,ato make its entry into the powermar-
Lati,g field by way Of the Sacandaga i'm
,,royonent-the building Of a reservoir
Which would cost A,500CCO and flood an
o-aa along the upper Hudson Valley equal
TO that Of Lake George.
| nv marketing the power thus created at
o ridtcrIously low nzure-$j a horsepower,
u,bcra steam power costs from 80 to A5
bo~sanower a year-the commission figured
{, could nay all operating and interest
charges refund in from thirty-fve 10 nifty
,,.ore all the original cost, add TO the state
r,,.oru.s annually 3i2 or per cent on the
auI,,t,oI cost and at the end Of fifty years
49, all the works and the Income forever.
a,,,,,c, only TO the annual maintenance
"a oreratIon costs and taxes. To do this,
- co,,rse the state would have to condemn
much private property
Nou The practical situation regarding
no sacandaga improvement is this: Most
of the desirable power sites along the area
Which would be benefited by the building
~ the Sacandaga reservoir have been pur-
chased bv a little group OF persons who.
.o,,e sav. represent one large corporation.
/ c. rov sites they could not purchase.
Aso ,hav own most of the land which
,,,o,,,d have 10 be flooded in building the
! ,osor,,o,r hut cannot buy II all.
,rhorofore although they realize the
! ,.roat value 10 them Of building that reser-
yoir they are blocked because they cannot
| .o,,,rol ali the land necessary for the
rosar,,oir site. and some Of the desirable
,ou,er sites which would be enhanced
greatly I'm value. Also, they would be
iiLo,y n have much trouble I'm obtaining
,.oncbises to string their power wires.