Show PINC PINCHOT WRITES ON WATER AlER V POWER I I I I I I Oct OcL UThe practice of the tho government In granting water concessIons is outlined by Gifford U S forester In a aletter letter written to Col Henry L HiS of Boston Mass a director of the General Electric com company pan The Tho latter aU r takes the form fonn of oC a pu public Hc statement and arni Is IR significant because of the widespread interest in the thc wat water water er power question I Mr Ir Pinchot seeks to lo emphasize particularly lint thal lie he does docs not Wish to retard the lie or of water pow cr Cl hy by private capital He makes clear the lIw point that tho ho renewal of a l at the of GO 50 years rears Is at al althe atthe the option of the government that It ItIs itis Is by statutes revocable by br the Ule sec rotary o of the InterIor bitt unless ro ic yoked continues 50 years cars whoa when It terminates an any special re revocation vocation hut but may then be renewed at the option of and on conditions to he be fixed by the government The letter follows D Dear ar sir str Your letter Oct 14 is received d You will he glad to know that I have hae been misquoted as to the you ou mention First or of all J have no desire to prevent or re retard arch tard the development of water pow pm erSt ens by private capital They The should be 0 developed by private capital in n my judgment In proper ro government control arid and not nol b by the tho nation nallon or the states Secondly I have hae not said sad either pr privately atel or publicly that the Gen Gon Electric company or any other single existing C corporatIon controls control or Is seeking to lo control all the water powers In the country But no one oue can deny there Is a marled marked tendency toward practical concentration con mil and control of the develop merit over oer wide areas In some cases this concentration may he be a mere or of Interests evidence and made effective by y in se Sev Several eral legally distinct d 1st corporations held by 13 the representatives of the same or friendly Interests In Iii othel cases It was brought rought about hy n a closet rob rola tion and In still othel cases In con cen central California there seems to lo be 1 it single corporate control of a large and poPulous territory The report rep commissioner of corporations trans to lo congress with his message of January 1 15 1909 1109 vetoing a bill II R Ii 1770 to lo license the build building In of a dam In James r niver er Mo establish lish the facts The Increasing radius or of practical electric transmission In the financial history of oC the country as to consolidatIon of other lends hillS of ness scents to Iry the belief that there is a strong tendency to central of h Is b lie lieU U F S I do not ta say a single trust has yet Ct been formed As an outsider I 1 have har not the information which woul warrant my sa sayIng ln that hal such a trust has been heen planned bin bitt it Il Is apparent the tendencies favor such a trust and will produce it it If they con cou I 1 therefore think it Il Is of the ut ul utmost most Importance fOI the people to these tendencies realize importance and take effective steps now while there is 15 yet time to La retain and effectively exercIse public control of this vital rHal necessity of life This ma may he be lone donI by y giving conce tous limited itt In time requiring a fair r rental and Imposing to lt tIm the evils whIch has taught laughl us its to expect front from monopoly J I nm am very orr glad to I have hayo your our statement that The U S should not nol part vIlh Ulis titis kind or of I without fair lease That Is 1 pl the the thc forest set ser service vice 1 has taken I II l I enclose a copy of the form of permit called a special use uso meet ment now nos used b by the forest service seTico In granting all water power concos In the national q 1 ll your attention to the tho fact I that thal this permIt requires that con COli construction be c hogun and within a time lime fixed in nc ac I with u LA W prevent the speculative r holding of undeveloped ites that al a small mileage and acreage ace I I charge be 10 dunn construction for the same sam r reason suon that a r reasonable I annual charge In proportion to the electrical output nominal amounts a athe the thc outset and gradually Increasing hy by moderate In slices sive ho five year periods he be Paid laid after operation begIns with rel reasonable do dc on account of other than na forest land by the plant oh 01 forming part of If t the hI water shed and In order to encourage tIme the building of storage on account or of water storage b by I the he that timber limber cut or royed In construe liOn ion be Paid for at Ia ij reasonable stipulated price that the plant b operated to a reason reasonable able stipulated fra fraction t of Its full fullI I capacity In order to scarcity and the thc resulting hIgh prices to that power be sold to lo lothe I the States Stales when at atas as 35 low a price as io 10 any other COIl coit I sumer that the permit shall not ho bo I transferred since the thc transfer of gO gov contracts Is pro prohIbited by state that the thc must hue reasonable precautions to protect the forest b by fire fighting etc that hat ho permit shall terminate at atthe t the end of 50 years but may be 1 re flowed on such conditions as the go gov shall then fix but that tn Ia fixIng them neither the permit nermit Itself nor the franchise stock or bonds or of orthe the be considered but on only 1 the value nt at that time or orph ph works the permit this In order that thal future gen ma flay not nol be e burdened to pay par n nn 1 I n u u These permits are issued under tinder the authority of a specific statute Act Acl Feb 15 1901 31 stat 70 The attorney general has given hit his opinion that the statute em empowers pow ers the government to Impose the construction and other condl condi contained In the permit opinIons opinions Ions of altorn attorney general Vol 26 P and the U S circuit court for Colorado has haH by br express order direct eel the receivers rs of the last power the permit TIme The admInistration or of company to pay par the charge and sign this statute so far as national for forests cats ests are concerned was to the department of oC agriculture hy by hythe bythe the act o of February I 1 1905 1105 33 st a P 28 butt still remains In the interior department so far Car as resorted reserved PUblic lands and national parks are concern concerned ell ed Under tIme the express statutory au so conferred the forest ser service vice ice issues hermits the provisions of which T I have hae summarized T I hope you will agree with me ine that thal they are fair leases Signed Gifford |