New-York tribune., 1918-07-15
Nation Losing 90 Per Cent
Of Water Power, Is Charge
Representative Smell Asserts Before House Vast Natural
Resources of United States Are Undeveloped
Because of Unfair Federal Laws

ilts the present generation and of all
posterity.
That man is honestly entitled to
more than bond and mortgage inter-
est return OH his investment, and some
people would want him limited to that.
ne is entitled to liberal return for
the simple reason that he has been d
litter instead of leancr in the COM
munity in which he lives.
THE three largest water power de-
Veiopments in my state in the last
twenty years have all failed from one
to three times before they got on a
firm business basis. The largest one
was .reorganized by the third set of
men before it was paying proposition.
One, | guess, is still in the hands of
receiver. and yet the casual observer
or uninformed will tell you about these
water powers and how much they are
making, when he does not know how
many thousands have been sunk there
and the years it took to put them on a
paying basis.
"Our citizens have found in other
lands welcome for their enterprise
and capital denied them at home. Thus
over 500, 900 horsepower has been de-
veloped in Canada, Norway, Sweden
! and France by Americans with Ameri-
can capital, and the establishment of
great industrial plants, involving the
expenditure of millions of dollars and
the employment Of thousands of men
has been lost forever to the United
States. I have a concrete example of
this in my home county. A company
owned a power site on the St. Law
renee River. but on account of the re-
inability to get proper charter they
went seventy-five miles down the river
into Canadian territory and purchased
q new site, put in development, used
the same water, met all navigation re-
strictions and regulations, developed
100000 hydro-electric energy, and are
to-day bringing over one-half of that
power over eighty-fve miles of wire
back into the United States and manu-
featuring equipment for the United
States army. Thus millions of Ameri-
labor employed there. taxes paid there,
that should be in the United States.
But that is not the whole story. II
Canada needs this power she may take
it at any time and shut off supply
that is if vital Importance to this gov
eminent at this time. With proper leg
islation on our statute books this i'm
portant water power development would
to day be under the American flag at
the complete command of the Federal
government.
No Cheesc-Paring Policy
"Let US be careful, therefore, shat in
the preparation and the enactment Of
the new legislation now under our con-
sideration We do not perpetuate, in
stead of cure. the present unfortunate
situation. If we adopt n narrow
cheese pairing policy, and load down de-
la ont RI /,
restrictions, our water powers will con-
tnuc to waste while those of other
countries are being utilized.
'The Importance and necessity that
coal and oil should be conserved
through utilization of the hydro -elec-
tric energy now wasting in our falling
waters is SO great that Congress could
we'll afford to authorize the payment Of
substantial bonus for hydro-elcctric
development if it could be secured in
no ether way.
war conditions and necessities. brought
about through lack Of coal and short
age of electrical energy for production
OF munitions, that during the period
since the war began the development
OF over 100000 water horsepower has
been undertaken in European countries.
1t may be truthfully said that it will
take from two to three years to com
plete water power developments on a
large scale and that the war will prob
ably be over before the power would
be ready for utilization. But the war
may last for three years or more, and
the development of our water powers
and the utilization of the vast amount
of energy contained therein, which
would largely replace man power,
might be mighty factor in deciding
the conflict in our favor. And in the
time of peace to come. when the ma
tions will grapple as never before for
world supremacy in trade and com
merce, no factor will be so important,
so necessary to industrial expansion
and to the growth of our foreign COM
merce as cheap electric power in unlim-
tied quantities."