The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1916-02-21

curity and fairness for the investor
and consumer, and at the same time
fully protect the public interest. I'm.
der the existing laws there may be
granted the right to buildSa dam on
the public lands of the United States
and operate it for an indeterminate
period, but at any time all rights can
be revoked by secretary of the In
terror in his discretion without hear
ing, and such action has actually been
taken. Manifestly such an expert
ment was doomed to failure, and the
Idea is without any present advocacy
and is mentioned as one of the evils
of legislation passed without knowl-
edge Of the subject legislated about.
It is stated by some who oppose
changing the present laws for de-
velopment of water power on public
lands that there is no necessity or de-
mand for additional developments in
the west, because some existing DOW
err companies have sufficient power
unsold to supply the present and near
future market. The suggestion by
government officials that great areas
of territory in the west and south shall
be deprived Of industrial growth
through water power assistance until
these few restricted districts have
consumed all their developed power
is SO unfair and unsound economical
| ly as to be almost pitiful. Our rail-
ways had to overdevelop that the
country might develop, and the same
is true Of the water power industry.
1t can also be said that in the entire
United States today there is not
single water power developed that can
offer fprDpc iIrcfifVfno- tho g.
tablishment of fertilizer works, cleo
tro-chemical works, large irrigation
projects or nitrogen fxation plants.
It can also be said that there are now
tentatively under serious consideration
In the United States new develop
ments that will call for more than
S75,000,000, all waiting for encourag-
ing legislation only. Must our unnec-
essary importations, amounting to
$50, 100000 year, and many other
crying needs, wait until a few western
plants can sell out a small amount of
power now unsold? I do not think the
people will take kindly to this idea.
Furthermore, If it should turn out in
the future that more power is develop
ed than can be INN ediately sold, such
condition is hardly one which the
public or the government need worry
about, so long as the people reserve
to themselves the right to regulate
power rates.
Another little known fact about
water power that bears upon the
question with peculiar force at this
time is the one Of profit in water pow
er investments. Steam competition
has driven the prices for power lower
and lower for the past twenty-five
years, and, while the cost of practic-
ally every other human necessity has
been mounting upwards each year.
the cost of power has been steadily
going downward, and this process was
strongly established long before state
public utility commissions were Great
ed. For water powers to compete
with these steadily declining steam
costs has been very difficult. In 1912
over five thousand power stations in
vestigated by the department of COM
merce showed that the steam stations
were earning a surplus Of Al per
cent above fixed charges and the wat
er power companies were earning
only LIS per cent. This ITS per
cent showing is a fine tribute to the
financial genius and grabbing results
of the alleged water power trust. In
vestors will not be attracted to secrr-
tiles afflicted with strong competition
and many great risks, legal. CONNER
cial. and physical, for surplus any
thing like as low as 1.7S per cent;
and the reason for their attitude is
easily found in the fact that the in
vestors can go into many other safer
fields and make much more.
That the water powers of the coun-
try are not being developed, and that
this lack Of development Is a grave
Industrial calamity, are facts the &C
curacy Of which canont be success
fully challenged. The question then
arises as to what is needed to cause
the business to revive and assume
its proper place in our national life.
/ believe that the following conditions
should exist in the laws governing
water power development in order to
make it possible to place this class Of
securities at home, where they should
be owned; they cannot hereafter be
sold abroad, anyway.
In the first place, the franchise
term should be irrevocable in charac-
ter and for not less than fifty years.
At the end of fifty years the govern
ment should have the right to take
over the property OF une power COM
pany by paying for the fair value OF
the property, the franchise rights and
lands contributed by the government
to be excluded from payment. The |
lessee should have the right to con-
continue until the property is taken /
over There should be no federal |
charge on the water power, except !
such small amount representing rent. |
nf land and nf
ment administration OF the lease, so |
long as it's steam and other water |
power competitors are not similarly |
charged. 1t Is a well recognized fact |
that any substantial federal charges |
must be paid by the consumer, be-
cause there is no one else to pay |
them. Why, therefore, should new |
sets OF consumers be obliged to pay |