Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1916-09-12
water POWERS
NOT COLD MINES
Steam Plants Compete CLOSELY
In Electric Production.
BY HERMAN B. WALKER,


nation exists as with reference to tn.
pending water power legislation. Thu
Shields and Myers bills propose term.
under which capital will be encouraged
to build water power plants. Oppo
nents Of these measures would pas:
laws the effect of which would be t.
discourage investment in these enter
priseS.
Nobody denies the Importance Of ou
water powers or that 1t Is well to have
them put to work. TO be told, however
as the country has been told, that wa
ter powers are so important and valua
BILE that great trust is seeking t.
grab and control them all in order tina,
1t may dominate all power using indus
tries in the country, is ridiculous to one
who knows anything Of the question.
In the first place, water power is no,
always cheap power. In many sections
Of the country it Is cheaper to generate
electricity by steam than to develop the
local water powers. The steam turbine
and other improvements in machinery
about this situation. The average cost
of building a water power plant is from
500 to $3.50 per horsepower. Some
very large water powers can be devel
oped for less, but they are the excep
tons. A big modern steam plant can
be built for $40 or $50 per horsepower.
Counting interest, taxes, depreciation
obsolescence, etc, on this additional
Investment, 1t often happens that 1t Is
cheaper to build and buy coal for a
steam plant. The actual economy In
use Of water powers Is confined solely
to the saving in coal and labor bills.
Then, too, the question Of which kim
of power is cheaper depends very
much upon the use made of the pow.
er. Electric current in large quaint.
ties cannot be put in storage and kept
until needed It must be generated at
the moment Of use. Where electricity
is used for chemical metallurgical and
other industries which run day and
night, water power may be cheaper,
even counting larger interest and der
head charges. It doesn't cost much
more to run water power plant con-
tinuously than to run it few hours
a day. The more continuously 1t is op-
Grated the less is the cost per kilowatt
Of the current generated. Where pow
err Is needed for general utility pur-
poses-house lighting, street cars and
industries that run only eight or ten
hours day-the water power plant is
net economical, because it's full capac-
ity, which must be used to make the
power cheap, cannot be utilized, and it
is often cheaper to generate current in
a steam plant which can be shut down
part Of the time without so much loss
in overhead charges.
1t is like farmer borrowing money
to buy tractor to do his blowing. If
he has farm big enough to keep the
machine busy most of the time, it is
a good investment and saves him mon
ey. If he has only few acres to pillow,
and the machine stands idle most of
the time, it would be cheaper for him
to do his small blowing with horse.
For the reasons given big steam
plant is now being built in Buffalo, al
though Niagara Falls, the biggest wa
ter power plant In the world, Is only
few miles away. Buffalo's utilities
and industries, running only part of
the time, can get power cheaper from
coal, while big chemical plants which
run day and night have located at Nj
agara because for their purposes the
power is the cheapest available.
fhnr, ofny thok
can be developed and operated advan-
tageously it frequently happens that to
use them to advantage these water
powers have to be supplemented by
steam plants. In some cases one
stream will have a low water season
at time when another stream is run
ming in flood. If these two water pow
ers can be united in one system it is
possible to get a more constant and
uniform supply Of power than If they
are under separate control.
Chief Engineer O. c. Merrill, of the !
U. S. Forest Service, explains the ad-
vantages Of monopoly in the power |
business in recent report to the Unit
ed States Senate, as follows:
Monopolizatiop Of the supply in any CIV
en-. territory makes possible through in |
terconnection Of stations and through
dtversifcation Of load, economies Of op-
GRAFTON that would not be possible for iso- |
lated Independent stations. Interruptions !
to service may be lessened. the needs OF
the customer may be better served and |
rates may be lower with single power |
system than with several. No better serv- |
ice is given and no lower rates charged |
than in California. where, notwithstand- |
ing the considerable municipal develop I
ment. 90 per cent Of the total primary |
power is: owned by public service cor
porations. or IN Montana. where SO per
cent Is owned by two affiliated corpora
lions.
Water powers are not always gold
mines by any means. The records
show that something like 1925 100000
Is invested in water power plants in |
the United States that have been in
operation for a number of years with
out having paid. a dividend to the stock
holders and in some cases without hav-
Ing earned interest on their bonds.
Census figures show that the average
net earnings of all commercial power
stations in the country. steam and wa
ter poWe.. combined. are ONLY about G |