The Washington times., 1913-01-26
SAVING THE WATER POWERS.

Ss:re'ary of War Stimson devoted long study
and effort to the problem of protecting the public
interest in the Connecticut river water power and is
deserving of congratuaton the excellent adjust
ment of the matter 1t is important not merely be-
cause it assures that that particular power will be
developed and administered with view to the inter-
est of the general community and of future genera
tions but also because it guarantees that similar
conditions will the easily be inserted in water
power grants hereafter.
1t is coming now to be realized that hydroeec-
ricity will be the great power of the future few
years ago We were wont to worry about the ex-
haustion of the coal. Discovery of vast new de-
posits nave worn the edge of that particular worry.
II is more likely that the world will discover how
expensive and nasty coal is, and to a considerable
extent quit using it, long before there is menace of
the supply failing The real point is that electricity
made from water powers is going to be SO much
cheaper tnan coal that coal will be used only where
it is impossible to get electric current.
At the very best the status of water powers in
this country is uncertain The Federal Government
has control navigation, but doesn't claim to
the water. The conflict between these propositions
leaves broad twilight zone of jurisdiction. The
Federal authorities resolved this uncertainty as to
their precise rights and authorities, in the Great
Falls case by inducing the applicants for the power
to write into their application the various conditions
that the National Government wanted to enforce.
Perhaps the applicants by process of litigation or
legislation could have got what they wanted without
agreeing to all these conditions; but they we're
willing to make the agreement, and did.
In the Connecticut river case the corporation
which has been granted the power rights, agreed to
spend nearly half million dollars for construction
of great lock as an aid to navigation, and about
five millions in the development of the water power.
On all this investment it will be permitted per cent
interest Above per cent and inside of per cent,
Government and company will divide equally; above
9 per cent the Government will get an increasing
proportion of the earnings.
Such conditions as these, together with prov-
sions against overcapitalizaon, excessive charges
limited tenure of the franchise, ETC.. are being in
sisted upon by the Federal administrators in all
grants of power rights; and it is cheering to note
that the people who are developing powers sre COM
ing to the conclusion that these conditions do not
constitute bar to investment. There was period
when the power promoters seemed to have decided
to boycott the Government to refuse to do any more
business until the Government should withdraw its
insistence on these terms. The Government proved
quite st-necked as the promoters. and the latter
are now giving way. They would have been pleased,
of course to get perpetual and unconditoned grants
of all the big powers in the country, they used to
do in the good old days before Roosevelt awoke the
country to realization that its water powers were
of inestimable value and were fast getting beyond
community control. But convinced at last that the
old game was played out, the seekers after power
are coming in now, and agreeing to reasonable terms
They have yielded to the inevitable The country is
not going to impose the yoke Of water-power
on ITSELF now that il understands what
that imposition would mean.