| Show FORESEER GIVES EPITOME Of OE rt i j t. t RULES MIES AffECTING POWER SITE GRANTS r K i Nov Not 1 The fhe Tho tico tice of the government in granting wat power r-power concessions j is outlined L b by Gifford Pinchot United States State forester ill in iu a letter Jetter written to Colonel II U. J. J L. L I. I W of ot Boston Haston Mass a director of of the General Electric company The J letter takes rho form of a public state meat and is significant of widespread interest iu in the tho waterpower water situation Mr Pinchot r. r seeks to lo emphasize particularly par parr that he be does docs not tt frish to reull the development of or waterpower water b. b by private vate yate capital Ho Ile makes clear the point that tho the renewal of a i permit at the tho cud caul of fifty cars 3 is at tho option of the government that it is by hy ire rc cabo by br the secretary of oC t the he interior but unless z continues fifty years whoa it terminates without nn any special revocation but bilt may 1113 then be ro- ro ne cd at tho the option of and aud on conditions conditions condi condi- to be he fix fixed d b by the government The Tho Jett letter r follows Not t to Retard Development My ly o d dar ar Colonel Jl Your letter lot let ler ter of or October 4 t Is received You M will willbe willbe III be glad Klad to know that I have becu misquoted nils- nils quoted as us to tho the you mention First of ot all 1 have o nu no d des delre Ire to prevent nt erra or retard tho a development dc 0 of water r i pow pow- ow- ow e fr by y private prate t capital rhe They should h i de clo developed d by 11 private capital In In my Judgment Judg Judg- rn ment nt under proper prop go government control I and not b by the tho nation or tho limo states Secondly I o have nut not sold fluid ild either cither pil- pil or ot publicly that tho rho General L lee lee- trio trio company or any oth other r single exist st Ing ng corporation controls or is Ig 1 now s- s sia suck suck- klog k- k log tl to control all tie the Ie water powers ers In the country country- But Dut no one ono can deny there is I. a market 1 t tendency l practical concentration and control of or the hydro hydro- electric d development over o very wide awns areas In n some cases concentration tra ma may 1 bo be 0 a. a mero mere community of or Interests Interest Q oil c nee d and nt mado 11 do effective b by orates orate In opral J all t t corpora L lion ions hold by the en n of ot th the Mme fume Interests Interest or 01 friendly Interests In Iii other cases It Il appear to l to he o brought huu ht about by be closer I. I Inter Inter corpora to relations rela- rela tlona and In still BUll other cn cases cafes 8 no fUI for or In Instance In- In stance central Call California lt there IS to be a single II Control of ot n a JIU large e and an populous territory The report re report re- re port o or of the commissioner of ot corporations transmitted to tn congress with Hh hi hits Of M January IP Hi vetoing a hill H. H H. H to lI license the th building of or a dam damin damin in tn James river Missouri establishes established these facts acts Tendency Toward Concentration The Increasing radius of or- or practicable electric I transmission and the rc recent nt cia etal history of tho the countr country a n to consoli consolidation dation dUon of or other r kinds of business lI seems ems to justify the belief that there Is 15 a 11 strong tendency toward conc concentrated control of ot lu el electric hydro de development nt In the United Slates 8 I do not say In a single tru trust t has yet ret been formed As A. an outsider I have o not the Information which would warrant my nty saying that such lIuch a trust has hap be been n planned I. but It Is la apparent that thal the present pr presS pres pres- J S ent nl ot tendencies favor such a trust and will produce It If Ie thc they continue I there therefore think I It Is t. of ot the utmost t tIm Im Importance Ortance for tho the people to understand these tendencies realize that Import and effective while 1 It Is take steps now there S yet rt time to T retain and anti effectively exercise public control of ot this thin vital ItAI at necessity of life This hl 01 may M be t o done by giving con- con conce ce si united limited in tn time requiring a n fair r f fL k t L I rental and impo in conditions to prevent pre pic- vent nt the l e evils II which c c has taught us to expect rom from unregulated monopoly I Indeed to lo h have am e very glad your roar our statement that the th United d States should Snot not part pirt with this kind of or property with with- jut ut ut fair rail leases That Is If precI precisely IY rn III ale service vice has po tho the forest get always alwa's akon To Prevent Speculation I 1 a copy cop of or t the h form of or permit permit per pr mit called a 1 Agreement now ined by h hh the h forest service In granting gruntIng grunt grant In Ing nil water power po concessions In the tho thona na national forests I rail call your our attention to th the fact that L this permit rr r requires quires that construction hI bo be begun and completed within a reasonable time In accordance with engineering engineer engineer- In ing hog conditions In order to prevent nt tho time speculative holding of or undeveloped elopEd sites flUes that a u small mall annual mileage and acreage c charge harJ be pall paid during con construction for forthe forthe the same reason that t a ru reasonable an on annual on- on nual charge In proportion to tho the eleCtrical eleC- eleC output nominal amount at the outset t and gradually Inn easing b by moderate moderate ate Increments Increment in uc j johp I e year five periods period be paid gold Id 3 after operation begins with ra reasonable deductions on account of ot other than u national 0 forest rt t land used us by br bythe bythe the th plant or forming part cart of ot the time watershed water ater shed f and In 10 order to 10 encourage hC the building build ing of ot storage reservoirs on account of or water uter storage J by hy the that tint tint- her r Cut tut or destroyed d In lu construction bo ho paid pard for fol at u a reasonable stipulated i price that the plant bu hu operated continuously continuous up to a l rCa reasonable stipulated ted td fraction of ot Its 1111 full 1111 capacity in under order to prevent ar- ar Uncial scarcity 1 and the tho resulting high prices to consumers that power be bo sold to tho time United States when requested at nt n as ns low 10 a R price e as IS to an any other consumer consumer con con- sumer flumer that the l permit shall fill not he bo d. d since the tha transfer f r of or government government govern govern- ment contracts contract Is 15 expressly prohibited b by statute that tho the must use reasonable seasonable sea rea precautions to protect tho the forest b by fire fighting etc that the permit shall hall terminate at tho the end Ju of oC fifty years cars but mB may then bo be renewal ren we l on such conditions con con- as tho government fO shall then fix Ix but hul that thal In fixing them neither the tho permit permit per per- r- r mit Itself lt nor ur the franchises tI stock or bonds of or tho the peril shall bo hl erel but hut only onh the a actual alue value at that time or physical works constructed under the permit this In ht order that future generations gen gen- generations Nations may Olav not bo burdened to lo pa pay divi dividends on Inflated securities They There permits permit are nr Issued under the this authority v of or a specific statute net act February Feb Feb- 15 IS 1001 1901 31 stab lat O p p. p The attorney at attorney itt itt- torn torney general has hus expressly given hl lilt opinion that tint the statute empowers the government to th the construction cOl cha charges charves ca a td id other conditions ui In tl the lX opinions n of attorney nc general gen n eral oral vol ot CC 6 p p. p 21 and the tho United d States Stales circuit court ourt for tor Colorado has haK b by Cx ev- cress order directed l tit I receivers of tho the ther t r TAS III as Power r company compon to tn pay the tho charge chargo and slim slain tho trio permit The Tile administration admin admin- of or this thin statute wo to far tar ta as national national na na- forests forts are 1110 concerned was waR transferred trans trans- to the th department of or agriculture by th the act of or February 1 1 t. 1111 33 fit stat at p. p IS S but still remains In tho the Interior de department department de- de so far ar R as a. reserved fj public lands and national J parks rk art are concerned d Under the tho express statutory authority so at conferred the th rOn forest t r l Issues permits per per- mits the tho provisions pro of ot which I ha have havo sum 11 I I hops hope you will agree with with- me mo that they arc fair Ir leases GIFFORD Forester Forster |
