Evening star., 1913-11-19

groups of water power interests today
control nearly twice rs much water power
as the ten greatest groups OF two years
ago controlled then. The ten greatest
groups of today control g per cent OF az
tre developed water power in the United
States. and a single group. composed OF
the General Electric interests, controls 10
per cent of all the developed commercial
water power in the United States.
In the last five years the concentra-
ton of control In the ten greatest groups
has increased about seven times faster
than the total of all water power develop
ment in the United States. The ten
greatest groups have increased their
control of undeveloped power In the last
two years more than twice as fast as
their control Of developed power. In ten
states one company. and In seven states
two companies. control from II to no
water power. and in fifteen of these sex
enteen states every one of these COM
panies was organized Or reorganized
within the last three years. If this is
not monopoly in the making, where can
il be shown? Commercial! power to this
degree is political power, and there lies
the greatest danger.
Net Earnings Disclosed.
1t is argued that concentration of
water power control is increasing faster
than power development because high
risks and low returns keep capital away.
But according to the figures published
by one of the ten greatest groups OF
power interests in the last ten years the
net earnings Of the gas and electric conf
panies of the United States have never
dropped below per cent as against 4.2o
per cent for railroads and 1.79 per cent
for industrial corporations AS shown by
the annual amount of securities in re-
@F rfrf, dfYoer
securities, the water power interests are
nearly five times safer investments than
railroads, over five times safer than in
dustrial corporations, and about as safe
as national banks.
"A water power is a natural monopoly
in the sense that only one man or one
company can control or use 1t at one
time. II there is but one water power in
a particular region, whoever controls that
power necessarily has monopoly.
Water Power Profitable.
Water power. therefore, as natural
monopoly is peculiarly subject to indus
trial monopolization, and offers peculiar
to monopolistic control. Since
it costs less to produce than steam power.
yet what 1t can be sold for is substan-
TALLY determined by the competitive cost
able. as the eagerness to get possession
of it sufficiently proves.
The control Of any source of mechani-
cal power-coal, oil. natural gas, water
with it control over the
industries which require the power, as
the rapidly increasing domination OF wat
er power interests over electric lights and
street railway companies well illustrates
Under these circumstances, we should
expect to find. and We do find. that the
control Of the water power business, like
the control of the oil business. the meat
business. and the anthracite coal business,
is passing into few strong hands. Like
coal, meat and oil, mechanical power from
falling water Is a necessity Of modern
life, Control over a necessity of life Is
control over the people who must have
that necessity. Private monopolization OF
any necessity of life means private con-
troll over the people without responsibility
to the people.
Power to Increase Cost.
1T means also the power to increase
the cost Of the necessaries of life, and
therefore the~cost Of living, without re-
gard to the public interest. up to what
ever point will yield the largest profit.
VIII full protection to the public interest
check development? The commonest and
most plausible argument of certain water
power interests is that 1t will The con.
elusive answer is that in actual practice
it does not.
s.Under the regulations of the forest
service, which include also the very pro-
visions SO vigorously objected to by GER
tain power interests as sure TO hamper
development, there were on the national
forests. on October l. 1913. seventy-eight
water powers developed. thirty under con-
struction and no less than seventysix.
of 12S, 800 horsepower capacity at low
water. for which permits have been taken
out within the past two years. under con-
ditions requiring. prompt development
The total capacity of all these powers
is about 100000 horsepower reckoned
on minimum stream flow, or not less
than twice that amount In actual fact.
These figures finally and completely dis
prove the claim SO often heard that prop
ment.
"Sincs water power first became pub
lie question the friends OF conservation
have done their best at every session
for legislation fair to both sides. At
every session certain water power in
terests who would be satisfied with
nothing less than all. checked the
movement or killed the legislation
Year by year. nevertheless, it has grown
more certain not only that the public
must have some consideration, but
actually that the public rights come
first. Some falr-mlnQeu water power
men have seen this all along. When
their influence predominates with the
water power interests as il soon will
do, we may look for a better day.
Now Time to Fight.
But in the meantime IL the public
rights cannot be recognized without
conflict then we shall have to fight and
il we have to fight, now is the time.
Most Of our coal most of our iron.
most Of our oil, Is already in the hands
of owners who use or refrain from
use. develop or refrain from develop
ment, purely as their own greatest
private profit may dictate. and but ac-
cidentally, If at all. as the highest pub
lie welfare demands. But in water
power 1t is not yet too late. Most of
the water power in the United States
Is still in the public hands Let US take
lime by the forelock and prevent now
what hereafter we could only regret"
Water-POWe Committee
Disagrees on the Method