The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1916-02-27

opolies. 1t Is this danger of selfish
private monopoly which the federal
legislation of the last ten years has,
been designed to avert.
The Justice of Federal Regulation.
That the federal government pos
sesses the power to regulate hydro.
electric plants is not open to debate.
That power is exerted today and is
confirmed by the supreme court. Nor
do we think 1t is debatable whether
federal control is preferable to state
control. The rights Of water power
builders as well as the public can be
better protected by a central authority
than by the conflicting authority OF
forty-eignt different states.
But the federal authority must be
as just to the builders of and invest
ors In water powers as to the consum-
ing public. This justice to both sides
can be maintained If the following
principles are observed in water pow.
er legislation:
The government owns and should
retain the ownership Of all public
lands on which water powers are built.
The water power wne should be
tenants only, and the relation OF the
government to the water power should
be that Of landlord to tenant.
The lease should be long enough to
justify the water power owners in in
yesting their capital, and short enough
to enable the landlord to protect his
interests by releasing his property.
A water power company should
either have the opportunity to re-
lease at the expiration OF the term
buy the plant and improvements at a
fair market valuation to be deter
mined at the time.
The water power men and the
executive officers OF the government
are in general agreement as to these
principles. They also agree that a
term of fifty years is q reasonable
period for the duration Of the lease.
There is, however, vigorous disagree
ment as to one other principle which
is essential to this question.
Shall the water power builders az
tenants pay any rem to the govern
ment?
On the one hand, representatives OF
the water power builders say that no
rent is necessary, and hat any rent
imposed will be charged inevitably TO
the consumer. II the government
wishes, therefore, to protect the con-
sumner. they urge that it should charge
rem
On the other hand, there are some
who, under what We believe
to be the mistaken impression that
the profits of the water power indus
try are beyond the dreams OF avarice,
charge a very high rent in or
der to cut those profits down. h
just course seems to us to be a mid.
die one. Some rent should be charged
in order to make the analogy OF land.
lord and tenant clear, and to form tho
basis OF a leasing contract which shall
give the federal government effective
over the social. industrial, and
financial operations OF the water pow
err companies. This rent should be
nominal to avoid danger of increasing
the cost to the public. but it should
be real in order to establish the fact
that the water power companies are
and moi perpetual owners.
No officer Of the government has
given q greater amount Of thought OF
shown a more practical wisdom in
with the water power ques-
Ion than Secretary Lane. Of the de-
oartment OF the interior. His atti-
,ude is based, we believe, upon the
principles which we have
lere endeavored to set forth. We
rope they will be embodied In the
e%gislation OF the preesnt congress.