Omaha daily bee., 1914-11-25


Bee: As visitor and reader of your
paper. [ note your editorial on the charity
problem. and suggest that YOU write to
the mayor. Charles L. Taylor, and Muir
ay Aurerbach. secretary OF the United
Charities. OF my native city. Little Rock.
Ark. I am sure they will give you their
plan OF handling the charity problem.
which has proven great success and
could be adopted here or In any live and
progressive city as yours seems TO be.
HARRY H. EDWARDS
Control Of Nebraska Water Powers.
OMAHA. Nov. H.-To the Editor of
The Bee: a noted American said recently
in a public address: III this nation Is to
avoid disaster. we must recognize the
probable effect of present-day political
tendencies upon business. upon property
and upon property rights, and upon the
course of Industrial and commercial de-
velopment. 1t is important TO the future
OF business that we now have back
ground Of sound and well-inforTned pub
lie opinion against which any new legis-
latlon which we need and are certainly
going to have, may stand out and be
tested
Water powers will never be developed
IL hampered by unreasonable restrictions,
because they need rather encourage
ment. possibly every public assistance.
Thus, any regulations should be formu-
lated by experienced and unbiased men;
others can't get practical results by
merely theorizlng and wishing Some of
these projects would pay possibly 20 per
cent on the investment; but won't and
should not promise 50 per cent or 100 per
aIt tI.nN G, hat 1aaa
investors seem to be used to in the way
! of promises. and. accordingly, they re-
fuse to become interested in legitimate
water power. No reputable project of
this kind has ever paid more than lib
eral return upon the investment. but, on
the other hand. It is sure TO pay reason
able return when properly planned and
! constructed.
The eastern investors have had ample
experience and now have confidence in
| such projects but not so in Nebraska.
| IT seems that every locality must have
| its own experience and so while the in
! vestment is just as sure and almost as
| productive here as elsewhere. seemingly
| unreasonable effort is necessary to in
terest investors In the first notable
| project, and other means Of some kind
may also be required.
Regulation and control of rates in re-
turn for water rights and other assist
ance may be all right and warranted by
| the public benefits which are bound to
result. state law might provide for
leasing all rights for reasonable per-
centage OF the receipts, and also provide
for a rental payment TO start within a
certain period after granting the right,
whether It was developed or not; this
would prevent holding. a grant for spec
ulation. Then the law might further
provide for the purchase of the plant
upon a fair valuation. plus a percentage,
which would leave sufficient inducement
for capital to invest and develop.
But public ownership and development
of any kind for water power is not prac-
ticable. There arc probably only two
towns in the state which have tried to
construct such plants and their efforts
have both ended disastrously Competent
engineering services cannot be obtained
upon the usual basis of competition,
which is generally observed BY public
officials, the necessary investment is apt
to be much greater than for other types
OF plants, and for practical reasons the
development must be made upon the
basis Of supply rather, than demand
tied bond issues and public officials are
never aggressive and experienced enough
TO make efficient statesmen and develop
the essential market for the plants ca
pacity-in fact, the various rates which
must be adopted in order to develop new
industries to utilize the full capacity OF
the plant are not consistent with a pub
licly operated enterprise. And yet. IL the
output is not sold upon twenty-four
hour per day basis the proper ad-
vantages OF low rates to the consumers
and satisfactory returns to the owners
cannot be maintained. remembering all
the while that the water which flows
over the dam is like oratory-it makes a
lot of noise but does no work. and the
investment and operating cost is just
as much whether the plant runs at so
per cent or 80 per cent capacity.
Many may be misled by those. who,
for political advantage. OF through lack
OF adequate information, make colored
but plausible statements. which may be
partially correct theoretically but which
are practically worthy OF no serious con-
sideration.
Then, again, there is restricted
market for municipal electric light bonds
now. because such plants are often a
scrap pile before the bonds have half
matured.
History and the conditions already re-
ferred to show pretty conclusively that
the original development viii not be sue
eessfully made as a public project and
that private capital must have more
satisfactory inducements than now exist
II these great natural resources, which
are stin going TO waste. are TO be utilized
for the general industrial development of
the state and the direct revenues which
will accrue. A. c. AhENp'