Show COM Of CORPORATIONS CALLS ATTENTION TO DANCER DAB OF MOP MONOPOLY i WASHINGTON March h 15 Conc 15 Concentration Inn tion of control Q cr water powers b D lug huge In n Important localities is r so eo rapidly that Herbert Hubert Knox Smith i ner of oI corporations ha has to nl Taft that the government gov JOV should hould preserve Q title to the re remaining re- re poR power or er sites alive and develop them to vre prevent nl a possible monopolization of or public utility companies mp nl JI A full report or of r tho lh commissioners commissioner's f oner In investigation of ot water waterpower ow f power potter r de clo development t presented to the president yesterday Commission Smith directs particular SItt attention to the tho r affiliation of or ort t water Crater power conc concerns and public sere s aft such ns AS street railway AY and corporations tlona and Rod often banks as 5 well The connection between een such Ruch concerns he recant of 5 s pub PUD- Hc The Tile concentration of or control ot over 1 Pr t water ster powers ower the is ex exercised 11 partly ny by h direct dl di- di direct ot owners lip of stock hut but mainly through directorates Power Monopoly reared Feared The rhe fa rapidly concentration I of water teeter power er control about which the commissioner sounds a a. a may mu b DO- DO come he Jn Fn fays a I. I th the nucleus for a 0 monopoly nf of both water and steam am power 1 if It the water 1 1 r cannot meet tho entire denand de demand cle nand mand of ot a n. given shen locality he l out th that t the he ott owners nera can acquire auxiliary fuel CUll plants plant and ana han handle le water Rater and fuel rower power t over r the tho same distributing linn lines and thus a complete commercial commercial p power monopoly might be bu built 1 up up- up in fact already exists In a a. number of communities Ten Teri of Interests with w rat Yno General ral Electric cOlm nn as M the most t T O powerful oR erful are declared b by ht Commissioner Smith to control or Influence shout about 60 nor por cent of oC tho ihn developed dO commercial commercial com com- coma mercial water cater po power cr of the I United States These lhee ten themselves arc are more nore or J less SR related Inter ft resultant community of or Interest t In this connection tho commissioners commissioner's report pays NS Too Much Concentration I In Iu this maze of or I I ran cine from practically Joint control rion town n n to association In common I directorate is fa clearly revealed tho th drift I of a wat water r poR power cr and public c utilitY coro cor- cor o under tl tho o control of or a few felt I vary powerful Int interests These Theio co conn c. c j tona some romp and some ome weaker T t A 1 favorable condition for a t very cry n small number of ut pen men to consolidate very n large Int r lIt whenever the they may decide It t Jo to their advantage to JQ da s S sn This Interlocking Inter locking ot or Interests directors s tt not necessarily Indicating a. a purpose of or monopoly c certainly affords an Rn Incentive oven tive and a II means mean's means to combination Mr Vr Smith ursine the Immediate formulation for for- of a n definite policy policy- of develop Jug ing the th remaining water atel po poR power r sites slice on an tho public domain r recommends generally speak In that the government retain the ultimate control of ot theM sites The Thc They should be det de developed at once he to declares not oat only to conserve the tho fuel tt supply UP P of the iho country but ho because aUKe the they ore are feat fast passing Into private te control It is es ea estimated es that the tho water power potter now neR in fn use uso saws avos tons tom of ut coal cou annually and Mr Smith adds the R water ah I poR power or resource is 15 s not expended in lU its using The problem m of or development tho com commissioner missioner et continues cannot bo solved by fixing b by law Jaw the selling price of or water waterpower pow power ower r by Itself which h In Jn any event ent R will Ill Illa nn hA a controlled b by the co cost t of tl loci fuel l po poR power er cr Recognizing that thAl the most moat efficient uno t of tt water power requires require a considerable of or unified control the commis commissioner sinner l niches makes this i recommendation for tor forthe the development de of or public water powers Dowers Favors Rental System Tho public can ran either develop and op 01 operate rate crate the tha sties sites selling th the energy at atmark market mark t rated rates or the ma may Wray lease lefts the sites alter a at l a SI rental fairly rl representing its Ita natural value The fhe commissioner comm favors favora ora the rental system The water pO power r of or the country countr de det developed de t and wd capable of development de e at al Urn probably does not cx exceed Mr tir Smith Ea say a A. A The total d developed water poR power cr tod today y In IR about 00 bocce I power T The I Ip to total p po power on er t used ined is ed I in n the United Stales Stabs steam slam arn R and anc gaa sU Is s probably ut U t u cr cr power lOWel Th Tho bureau of corporations In fn It Its ts In In n found concentration of water vater powers U according to the tho r report vort In three threet distinct p phases to ea Fh First st l there thel WitS was a n centralization cen t r of control in tt each ch Important locality s l. l Intel eats influenced a. a number of three these local concerns and there ns round found a growing re rc re amon among tile the bl big interests P Power Corporations Jn 11 California six great power cor cor- o of which the most mon Important IK f the Gas GaR F company with Ritha 11 pofI together fr con con trot over horsepower wet el over SO SQ per PI een cent t tor of or all th the d developed water r power In th the stain Mate Mr Ir Smith t s rays 5 in Sn dl discussing g log lou lo 10 local lo- lo u cal l I concentration nc In Washington ton t U tRU o companies control er er or ot about 70 iO per cent nil all developed cle d tt water t I r power R nr In Jn South Carolina the Southern rn Power nr co company pan owns onus abott horsepower or nr T per cent of If th the total commercially 1 developed d. d with Uh unde une t clor In In the thc routh southern rn peninsula of Michigan n In th Commonwealth Tower Railway a and Light comp n ny rOn control I rail horse horse horse- bower or 3 per c l runt nt of JC tho rho rommer rommer- lall i-lall develop develop-d. lop rI together w with probably it or more undeveloped stroller similar r conditions we 1st In n M Montana tan Co Colorado orado G Georgia olla and und ai Niagara Nia Ia Ia- Ia gara 81 R II FJ Palls a More Important than this thle Oral local cen- cen n. n th the commissioner declares leclar I. I are ue th the operations of ten large urge groups of or re which control or nr In In fluence over H 1 1210 M dOC developed horse horsepower pon power cr about hout CO GO per cent of tho commer commercial clot cial n water power In to the the- States with horsepower unde 1 One Giant Company rh The General J Int In Interests restA the re rc report re- re port part d rl lare or a II Influence tt VUO horsepower cr of or developed n water ater pO power potter In tn eighteen different rent states and horsepower er of or undeveloped resources a a. agra gra grand nr total ur of o over nr a million and a half horsepower Next eat ar are arn tho Slone Stone and Webster ter Interests tho report continues which either own or strongly Influence horsepower r. er chiefly In connection with pU public lla service 8 concerns They Thoy ex exerCise exercise ex e control largely larel through h management management manage manage- m ment nt rather than oR ownership over O or sixty companies Eight hat have o water water wa wa- ter power tho Jarl largest fIl being befog on th the the- theMis Mis Mississippi III It river fiver and In the sound re region lon The Tho other ocher group are aro the Hydraulic PoR Power cr company compan of or Niagara Falls horsepower cr tho the Pacific Gas d Electric company compan R with over aver horsepower developed and the tho dominating factor Ina In InH H II largo laro portion of California the group roup knoR known tt an es th the C Clarke Foote arke Interests horsepower largely I dominating the lire R water w poR pow pow-er cr situation sit In Michigan n and also active e In Maino nn and Ore Oregon on tho the Southern Power Potter company compan horsepower er which owns the thO great reat hulk bf dt C tho commercially de developed developed de de- pow power r in South Carolina tho S. S Morgan n Smith Interests rests Georgia hor horsepower er tho the Brad Brady interest Tennessee horsepower tho United Jolted Missouri 1 River Pow Power Potter r company horsepower er which with the Butte Electric Electric- Po PoR Power er company compan General EI Elec Electric c- c group practically ally dominates th the power situation In Ut Montana and the T Tel Tel- I- I Foa Power er company compan Colorado Idaho and Utah horsepower et Tho The teal last named ulna InA Interest also algo Include under their Influence n hons horsepower undeveloped unde unde- Closely Cosely Related Belated Carrying ng the tho community of or Interest rest loin to lo toa toa in a wider Rider T range report continues continue those these It great ent groups show sheR more or less Jess relationship rela rela- with each other othet The two too greatest the General Electric and th the iho Stone Ston an and Webster groups troupe have directors In a number of or the s same ame corporations It Il ItIs Is fill added and the th R R. Morgan Horgan Smith and Brady Interests are similarly connected DI Discussing an Increasing affiliation of or water Rater poR power floer er concerns and public service companies the commissioner tl says The Th companies In th the General Electric group coup control street railways In sixteen towns tons electric lighting plants plant In seventy seventy- eight curl and gas plants in ill nineteen Alto Altogether Ito to ether gether water power rt or nr allied companies own or control contro ro and o operate Prato street treet railways rail rall- wa ways a s In 11 toR towns clec electric tic lighting P PIn plants ante In SOD toR towns ua and gas AS a plants in 11 towns to Th Thu 5 reasons rr-aFon for this are art o obvious Control Control Control Con Con- of M the chief r consumers consumer of poR power er both Insures a market for fot power and excludes t others other This conn connection cHon between ht great power groups and the tho a agencies that dl dl dl- sen serve P the public Is of public public pub pub- lic lie significance Morgan at the lIe Head R nt Interlocking rl cJ ln- ln directorates 5 Mr Smith sa ars s A A more morr general relationship of nr a 8 sort ort not peculiar tl to water lott power er but hut nevertheless never a of broad public significance is la best beat Illustrated in the General Electric compan company m men n who are officers or directors direct Of ors ora In that thal company compan or of eta HI It three wholly controlled d subsidiaries are arc 31 also o officers officer and directors In mart many other cor cor- These other COmp companies with their subsidiaries and ana with the General FIc EIt Electric and It Its make mak a far far- reaching re gro group p thus flute Interconnected by i J r onal and financial relation relation- shin hl This one anc group of In Inter relationships Inter controls or 01 Influences tR twenty four ent four corpo orpo- corporations rations that t n operate crate hydroelectric l plants OW ut over cr I fifty lith public s service corporations not counting as us m many guy minor minor subsidiaries more Inor than a n do dozen cn ra railroads loads numerous Industrial corporations and finally over or flit banks bank and financial houses hou-ea 8 m man many iny of th them In tt th the tint first rank tank of oC Importance About Aboul bout tw twenty nt General fc men In nil all constitute roost most of or this chain of td Ir con con- Un Unee ec oi of f those being members rl con I of or ortho the tho firm of oC J. J P. P Morgan d Co which is IR generally rf regarded ns as tho dominant In Interest In- In terest In lu the General Electric company These p. p connections in to h H no 9 anso 1 alwa always a amean mean control ol b by the General EI Electric company or even IJ identity of policy polk They Thoy do however mean a R striking d de degree grCe gree of or community 1 of Interest |