The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1912-03-15
WATER POWER In
HANDS OF FEW
REMAINING SITES SHOULD BE
CONTROLLED sY TIE U. S.
SAYS COM. SMITH.

Washington Marcn 15.-concentra-
tion of control over water powers by
large Interests in important localities
is increasing so rapidly that Herbert
Knox smith, Commissioner of Corpora
tions has reported 10 President Taft
that the government should preserve
title 60 the remaining power sites ana
develop them to prevent a possible
monopolizzation or public utility conn
panies. A full report Of the commits
sioners investigation of water power
development was presented to the
president
Commissioner Smith directs partic-
plar attention to the increasing afi-
liation Of water power concerns and
public service agencies. such as street
railway and lighting corporations. and
oftentimes banks as well. The con-
hection between such concerns he re-
cards OF serious public significance.
The concentration OF control over wa
ter powers. the Commissioner declares.
is exercised partly by direct ownership
Of stock, but mainly through inter
looking directorates.
The rapidly increasing concentration
of water power control about which
the commissioner sounds a warning
may become. he says. the nucleus for
monopoly of both water and steam
power. Ii the water power cannot
meet the entire demand OF a given To-
cality he points out that the owners
can acquire auxiliary fuel plants and
handle water and fuel power over the
same distributing lines and thus a
complete commercial power monopoly
might gradually be built up-in fact
already exists in a number Of COM
munites.
Water Power Controlled.
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 60 per cent of the de-
veloped commercial water power of the
United States These ten groups them
selves are more or less inter-related.
with resultant growing community of
interests. In this Connection the COM
missioner's report says:
I'm this maze Of relationships,
ranging from practically Joint control
down 10 personal association in COM
mon directorates, is clearly revealed
the drift of water power 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 when
ever they may decide it to their advan-
tage to do so. This interlocking Of
interests through directors, while not
necessarily Indicating a purpose of
monopoly. certainly affords an incen-
tive and a means to combination"
Urges Definite Policy.
Mr.. Smith. urging the immediate for
mutation of "A definite policy of devel-
oping the remaining water power sites
on the public domain, recommends gem
orally speaking that the government
retain the ultimate control of these
sites. They should be developed at
once, he declares. not only to conserve
the fuel supply Of the country, but be
cause they are fast passing into pri-
vate control. IL is estimated that the
water power now in use saves $4,000
600 tons OF coal annually and, MIR.
Smith adds, the water power resource
is not expended in its using.
The problem of development, the
commissioners 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. Recognizing
that the most efficient use of water
power requires q considerable degree
of unified control, the commissioner
makes this recommendation for the de-
velopment OF public water powers.
THE public can other develop and
operate the sites. selling the energy
at market rates, or the public may
lease the sites at a rental fairly rep
resenting its natural value" The COM
missioner favors the rental system.
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