The Birmingham age-herald., 1915-08-09

river in an adjoining state rival com pany has spent S10,000,000 of its own money in building a dam. locks and ether masonry work.
 The Alabama company Is not content tc spend its money in dams locks, etc, 1t is bringing to bear tremendous pres sure to persuade Congress to spend si6, 100000 of the peoples money in de- veioping this great water power for the Alabama company.
 Congress is told that it's share in the investment is for navigation. Sta tistics show that only 5000 to 5000 tons per year (three trainloads) is handled through the navigation of this river So that the project Is in reality a water power proposition. and for the benefit of the water power company Now, this corporation is not content with the donation to 1t by the state of this tre- mendously valuable water power right, and with an appropriation by the na- tlonal government of $16,000.000 to- ward the development of the water power, but 1t even wants the state to exempt it from taxation for 10 years. A very modest request.
 What of the Future
 Now, I want to let you know some of the things the giving away of this great water power will mean to the future generations of this state. First. 1t will mean that a water power monopoly will be formed in this state for the next 100 years This monopoly will gradually secure franchises in all the cities and towns of the state, and will in time become powerful political factor in the affairs of the state With its em- ployes, lawyers and political agents To- cated all over the state, it will dominate and corrupt Its politics for the next 10t years.
 This corporation owns or controls prac- tically every site in the Coosa and Talla- pocsa watersheds These great water touched. By securing control of the Muscle Shoals it will secure a monopoly of the water power resources of the state and this. as with every other monopoly is it's ultimate goal.
 | The monopolization of the water power in itself is of no very great consequence The price of power will always be fixed | by tho cost of generating power witt steam plants. At the present time the rates offer nothing as compared with the rate at which power can be produced ir l this state with modern steam plants 1 It is well known among most of the large power producers of the Birmingham dis trict that with modern plants located ir the Birmingham district, power can be | SOlu dl lHt A1dDdiIld l-OWtI tOIipdHy primary rates very profitably, when pro duced from a first-class steam plant. l In other words, power Is being sold 1T this state at a rate as high as the mar ket will stand, and in my judgment al I a much higher rate than the market will continue to stand This is the well-knowr law of monopoly, and it is an excellen index by which to judge the future bene i fits resulting from further rnonopolizatiof l nf bn xu-o tor nf cf a Q The case of the Birmingham Railway Light and Power company is a fair ex ample. In this case the president of thu company made public a statement that 1 inasmuch as water power would cost th' company more than steam power had cos them, there could be no reduction in rate 1 to the consumer. The net result of tn change, therefore, was that about loo min
 CTS were thrown out of employment, ant that the wages which formerly had beer paid these men for mining coal were sen to foreign country as interest on thu
 water power bonds.
 Company No Benefit to State | You ask me, then, wha. benefit has tn 1 Alabama Power company been to the stat of Alabama? My answer Is that as ia as can see there has been little benefit 1 Tha capital which they brought into tn l state is exempt from taxation. They hav thrown hundreds of men out of employ
 ment at a time when most of the mine of the state were either shut down or run I ming or, reduced time, and they hay
 brought no new industries into the stat
 to furnish unemployment to the men thu
 thrown out of employment.
 | Moreover. unless their rates are ma terialy reduced, see no req son why the,
 should bring industries to the state, a
 their present rates offer no incentive a compared with steam power.
 Finally, being a foreign corporation, tn rev enue derived from the sale of curren is sent abroad. and not being subject t
 reinvestnent in this state does not giv
 unemployment to the men who have bee threw out of work around mines, in tn
 boiler rooms and in the power plants o
 our state.
 Tn the light of these facts, l cannot SC
 that the corporations activity has beel
 of material benefit to the state, since
 would appear that every power consume
 added to their mains means an economi