33 



recent investigations show that, in the Dominion, only 13-7 per cent 

 of the power in central electric stations is generated by steam. That 

 steam has been able to hold its own in the United States, in spite of 

 the high efficiency of water-power, is largely due to the extraordinary 

 success of steam turbines. 



On the other hand, owing to war conditions, the price of labour 

 has increased enormously. As pointed out by Mr. Julian C. Smith, 

 Vice President and Chief Engineer. Shawinigan Water and Power Co., 

 "the effect on the cost of power from existing steam plants, as com- 

 pared with existing water-powers, has been to practically double the 

 cost of power from steam plants and to only slightly change the cost 

 of power from the water-power plant previously built.' '* 



Mr. Smith also states that the capital cost of a water-power plant 

 is twice that of a steam plant and that, if this cost is high because of 

 high labour costs, the water-power plant is "handicapped forever". 

 He concludes that, for many years, steam plants will be of primary 

 importance and water-power plants of secondary importance, but 

 excludes from this dictum the great powers of Niagara and the St. 

 Lawrence which have great inherent and special advantages. 



Messrs. Gilbert and Pogue, Division of Mineral Technology-, Uni- 

 ted States National Museum, point out that " when a ton of material 

 passes through a manufacturing plant, it means, with due qualifica- 

 tions, that the railroads have hauled a ton of raw material from far 

 and wide and will move a similar weight of products away for distri- 

 bution. "f They urge that, during stress of industrial expansion, the 

 freight-hauled coal, to be used for the generation of power, may create an 

 impossible situation. If. however, electric energy be transmitted 

 to points where energv' alone is required, transportation would be 

 relieved of a burden of coal haulage. 

 Hydro-Electric Whether a steam-electric plant be already established 



versus on a Steam-power basis, or whether it be desired to 



Steam-Electric j .^ .^ ui- i i 



expand a serA'ice or to establish a new operation, the 



first cost is low and the chief item of operative expenditure is for 

 fuel, which is unavoidable, but is spread over the years of operation. 

 The legitimate capitalization, therefore, is the cost of erection and 

 equipment of a steam-power plant. 



In a hydro-electric development, howe\er, conditions are re- 

 versed; the great burden falls on the initial cost of development. 

 The interest upon the capital invested in the plant is much the most 

 important item of gross operating expenses. An analysis^ by Mr. Gano 



*Tke Canadian Engineer, Dec. 26, 1918, p. 551. 



^Power: Its Significance and Needs. Bull. 102, Part 5, Smithsonian Institution, 

 p. 10 



XProceedings, American Inslilule of Electrical Engineers, Mav, 191(), p. 585. 

 59875—3 



