The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1912-03-15
WATER POWER
now SOUGHT
IS MONOPOLY
Commissioner Of Corpora
tions Sounds Warning TO
the Nation.
URGES GOVERNMENT
To lake Steps at Once to
Control All the Water
Power Sites.

/ WASHINGTON. mar. Is. concen-
tration Of control over water powers
by large interests in important local
ties is Increasing SO rapidly that
Herbert Knox Smith, Commissioner
of Corporations, has reported I'd
President Taft that the government
should preserve title to the remain
ing power sizes and develop them to
prevent a possible monopolization OF
public utility companies. A fun re.
port Of the commissioners inycstiga-
tion of water power development was
presented to the president today.
Commissioner Smith directs partic-
ular attention to the increasing afin-
alton Of water power concerns and
public service agencies, such as street
railway and lighting corporations,
and oftentimes banks as we'll. The
connection between such concerns he
regards OF serious public significance.
The concentration of control over
water powers, the commissioner de-
clares. is exercised partly by direct
ownership of stock, but mainly
through interIocking directoTates.
The rapidly Increasing concentra-
ton OF water power control about
which the commissioner sounds a
warning may become, he says, the
nucleus for a monopoly of both water
and steam power If the water power
cannot meet the entire demand Of u
given locality he points out that the
owners can acquire auxiliary fuel
plants and handle water and fuel
power over the same distributing
lines and thus acomplote CONNER.
cial power monopoly might gradually
be built up-in fact it already exists
in number of communities.
Ten groups of interests, WITH the
General Electric Company as ,the most
powerful, are declared by Commits
sioner Smith to control or strongly
influence about sixty per cent of the
developed commercial water power OF
the United States. These ten groups
themselves are more or less inter-
related, with resultant growing COM
munity of interests. In this conuec-
ton the commissioners report says:
in this maze of inter-relatlonships,
ranging from practically joint control
down to personal association in COM
mon dlrectorates. is clearly revealed
the drift OF water power and public
utility corporations under the control
of few very powerful interests.
These connections, some stronger and
some weaker, suggest favorable con-
dition for very small number OF
men to consolidate very large inter-
ests whenever they may decide it to
their advantage to do so. This inter
locking of interests through directors,
while not necessarily indicating a
purpose of monopoly, certainly af-
fords an incentive and means OF
combination"
Mr.. Smith, urging the immediate
formulation OF definite policy OF
developing the remaining water power
sites on the public domain, recon-
m. nds generally spiaking that the
government retain the ultimate con
troll OF these sites. They should be
developed at once, he declares. not
only to conserve the fuel supply of
the country, but because they are fast
passing into private control. 1t is
estimated that the water power now
in use saves S3,OOO.0OO tons of coal
annual and Mr.. Smith adds, the
water power resource is not expended
in 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. Recognizing
that the most efficient use of water
power requires considerable degree
of unified control, the commissioner
makes this recommendation for the
development of public water power:
"The public can either 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
commissioner favors the rental sys-
tenn.