The Washington times., 1913-01-24
TERRIFIC BLOW
IS DEALT WATER
POWER MONOPOLY
Secretary Stimson Succeeds in
Reserving Control of Prop
erty Sought BY Trust.
By JUDSON c. wELLIvER.

The Water Power trust, which for
years has been seeking control of avail
able water powers all over the country,
received another hard blow today at the
hands Of Secretary of War Stimson.
. Ever since President Roosevelt, in his
famous Rainy river and James river
oem bill veto messages. exposed the
fact that there is Water Power trust,
threatening to monopolize one of the
most valuable natural resources, Con-
Eress and administrative officers have
been struggling with the problem of
protecting the public interest in powers.
The step that was announced today is
believed to make precedent which will
establish in all such cases in future
the rule that the public must be fully
protected.
The Connecticut River Power Com
pany asked Congressional authority to
aam that stream near Windsor LOCKS,
Conn.,, and, at an expenditure of about
s5-o0o.o00. develop one of the greatest
powers IL the country. Part of the prof.
ect included building lock and chan
mel as an aid to navigation, this beng
done entirely by the corporation.
Divides With United States.
In addition. the company is TO divide
fits proNts with the Government. 1t
gets all up to per cent on the invest
ment; then between s and 3 per cent
gives the Government half; and above
9 per cent gives the Government an in
creasing ratio. After thirty years on
new adjustment of relations between
Government and company: and from
that time, like readjustment will be
made each ten years during the coz
tinuance of the grant, which Is fifty
years
This naturalization of interests and
benefits has been accomplished only after
much negotiation. Until very recently,
the water power promoters fatty re-
fused to make such terms. protesting
that the restrictions rendered II I'M
possible for them to finance their prof.
ects. But when the Government stood
firm. they melted
The first big accomplishment was in
the matter of the Great FAILS, Mont,
project, which was handled by Secre-
tary Fisher. The power company con-
scented to the various conditions inn
posed by the Government, as to control
of rates, compensation. etc.
Established Precedent.
That settlement established a prece-
dent for the inter-mountain country,
and broke down the claim of the power
promoters that they couldn't get money
for investment in their projects IL the
Government insisted on limitations in
the public interest. Now comes t3e
Connecticut river settlement, which es-
tablishes the same proposition in the
East.
The power companies, according to
Government officials, are recognizing
that they are not going to get powers
unless they make proper terms. Being
convinced of This. they are coming IN
to negotiate for the best conditions pos
sible.,
In announcing today the Connecticut
river agreement, and recommending to
Congress that the pending bill do now
pass. Secretary Stimson said:
This case offers a good illustration
of what can be done under the policy
of insisting upon compensation for the
grant of these privileges. II has hitE-
erto been the policy OF the nation TO
allow these water powers to pass into
private hands without getting anything
for them whatever. Only year ago
this company sought the privileges
granted by this bill and expected to
get all of the profits from the water
power development for its own use. And
it would have done so had the same
policy been carried out which has OBJ
fained in the multitude of other similar
bills passed in former years Under the
policy now insisted upon by President
Taft. IL turns out that they are not only
willing TO make this large initial in
vestment for the benefit of the Govern
ment, but they are perpared to share
their profits beyond per cent, With
the Government. under conditions which
provide for accuracy and publicity in
determining what those profits shall he.
/ think that every public interest il
satisfied by the bill. and the fact that
II is also satisfactory to those per-
sons who are about 10 embark their
money into the enterprise indicates that
a legitimate development of water pow
eF Is reconciiable with a proper proteC-
fIon of the interests of the public. |
earnestly hope the bin will be speedily
,oo cfed