Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-07
Regarded as important Step in
Water Power Development.
GUARDS PUBLIC INTERESTS
Marks Beginning of Electrifcation
Of Transcontinental Railroads.
RATE REGULATION PROVIDED
Uniform Accounting and Complete
Publicity of Books and Rec
ords Are Stipulated.

The Department Of the Interior today
issued grant which it regards as the
most important step in water power and
electrical development that has been
taken for many years. 1t marks the be-
ginning of the long-predicted electrical
ton of the transcOntinental railroads be-
tween the Rocky mountains and the Pa
clfic coast; but much more important
IMAM this is the fact that this step is to
be taken under a grant which embodies
the fundamental principles Of water
power policy which the Department of
past two years
IT demonstrates not only that the pro-
visions for the protection of the public
interests upon which the department in
sists do not prohibit water power devel-
opment, as has been claimed by it's OPP
ponentS. but that the greatest develop
ment which has yet taken place in the
practical application of electricity can be
and is being taken under these very pro-
visions.
Compensation to U. 8. Provided.
The grant issued today provides for
compensation TO the federal government.
very small a first, but subject to periodi-
cal readjustment every ten years.
1t provides for regulation of the rates
ana service. uniform accounting and COM
piete publicity Of books and records: the
sale of power to the United States. and to
the state within which the transmission
lines are located. and to municipal cor
porationS in such state at as low a rate
as given to any other purchaser for like
use under similar conditions; protection
against fire. and prohibits any transfer
or assignment of the permit without the
written approval of the Secretary Of the
interior. The company is forbidden to
claim any earning value for the grant. or
any selling value should the public take
over the company's works al any time.
me compensation or rentals fixed for
each decade must be reasonable, and
the company has the right to contest
be unreasonable: but the burden Of
PROOF on this point rests on the COM
pany.
The railroad which is taking this
experimenting step is the Chicago, Mil
waukee and Puget Sound railroad
which is electrifying $50 miles of it's
main tracks between Harlowtown,
Mont and Avery. Idaho. and the COM
pany which is furnishing the electricity
is the Great Falls Power Company.
There is no act Of Congress under
which the policy which the department
has been advocating can be adopted so
far as 1t relates to power sites on the
public domain.
Permit Establishes Precedent.
However. under the act passed March
f. 1911, relating exclusively to electrical
transmission. telephone and telegraph
lines, it has been found possible to work
out a permit which the department re-
CARDS as a precedent which will have
far-reaching effect The act is not as
satisfactory as it should be, but 1t has
been possible under it to demonstrate
that private and public interests can be
reconciled and cO-ordinated with fair
ness and justice to both. Indeed, the
fact that the power company Is willing
to accept the fullest provisions for the
protection Of public interests. even where
all it is asking for is a permit for a
transmission line. makes the transaction
especially significant.
The power company and the Depart
ment of the Interior have found that they
can cooperate cordially and effectively in
working out general rules and regulations
under this act and in fixing the terms of
a grant so as to recognize effectively both
public and private interests and rights.
The department wishes to commend par
ticuarly the candor and public spirit
shown by the representa- tives of the COM
pany in the negotiations which have led
up to the issuance of the grant.