Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1918-01-25
THE PRESIDENTS WATER POWER BILL
of RvSOw President
greSSP Develop
BY Freder }.

experts is more scientific than either the Shields
bill of the senate the Ferris bill of the house.
1t is like the house bill in that it throws more
safeguards about the interests of the public, and is
less thoughtful of capital than the senate bill The
differences, however, for the most part minor
The measure provides that the federal power
commission shall lease to citizens corporations,
municipalities, states other parties for periods
OF fifty years the right to develop water power on
public lands and navigable waters. At the end of
the period the rights to the power site to
revert to the government which may renew the
lease to the same party or to another one, or may
operate the power plant itself. The rates charged
for power to be regulated by state commissions,
where such exist, except when the power enters
into interstate commerce. IN which case the federal
commission is to regulate the rates charged 1t will
also have jurisdiction in states where commits
sion to regulate rates exists.
These the fundamentals of all three bills.
They vary to details of terms upon which the
government may take over the property at the
expiration of lease The lease cannot be
voked as long the lessee obeys the law. The gov
eminent must approve the plans of the lessee for
construction; and he must develop the water power
adequately and competently.
The administration bill requires that the lessee
shall pay the public for the Of power sites
at the rate of not less than ten cents per horse
power per year, the rate to be fixed by the COM
mission. The house bill also provides for payment
according to value The senate bill would charge
the lessee only for his share of the upkeep of gov
eminent improvements which benefit him.
The administration bill is also different from
those the congressman have written, in that it gives
special advantages to states and municipalities
They are to be given the of water power free
of charge, and preference is to be given to their
applications for leases. This would SEEM in fact
to be the most important difference between the ad
mnistration bill and those which have been before
congress. 1t means, for example, that instead Of
corporations being allowed to develop power and
sell it to cities at profit, the cities going to be
given every opportunity to develop it for them
selves under federal control
The administration bill also contains provision
that the government may take over any Of the
power plants developed under this act for the pur
pose of manufacturing munitions, nitrates other
materials needed in an emergency, such as war
According to evidence brought out in the hear
fngs before the house committee, there has been
growing up and more centralized control OF
water power interests in the United Statesthat is
we are raising a water power trust. In 1913 ten
groups of interests controlled most Of the developed
water power in the country, and these were more
less related through the wel-known medium of in
terlocking directorates
This Capitalization is, of course, to be expected
The water power industry is merely repeating the
history of most other Industries in this country.
Many of public utilities are controlled by little
groups of fnanciers and these in turn are more or
less controlled by the government. This water
power bin is designed to make the government con-
troll Of the water power industry effective and thor
ough by beginning at the bottom, so to speak. The
whole DEVELOPMENT is to be under government SUI
pervision. The federal power commission will reg
ulate the water power industry in the interests Of
the public the way that the Interstate com
MERGE commission is supposed to regulate the rail
roads in the interests of the public. But the task
is made easier in regard to water power by keepng
the title to the fundamental resource involved in
the government, thus preventing speculation. an6
giving the government more power.
The administration bill certainly seems to pro-
vide we'll for safeguarding the public interest. The
question is whether the water power will be prompt
" developed under this measure. If it is not.
other method-possib1y development by the govern
meut itseIf-win have to be adopted. For the
United States no longer afford to waste these
millions of horsepower.