NATIONAL CONSERVATION AND WATER POWERS 



983 



create a false impression. Waterpowers cannot be used 

 under any conditions until they are needed. There is at 

 present, on national forests, a total of 1,067,621 horse- 

 power for which permits are outstanding, and the water- 

 powers already in operation produce 266,797 horsepower. 

 Instead of immediately increasing the amount of power 

 development, there is reason to believe that the effect of 

 private ownership might be just the reverse, and that a 

 powerful motive for desiring absolute ownership is the 

 opportunity which it insures of holding possession of 

 valuable powers, and keeping off competitors, until the 

 time comes when it will be profitable to use these powers. 



market. Meanwhile, unprofitable waterpowers retnain 

 the property of the nation until such time as they are 

 needed. It is so obvious that the leasing system instiead 

 of preventing, tends to secure the maximum develop- 

 ment, that it would have been well for the champions of 

 private ownership had they made overdevelopment the 

 basis of their objections rather than retardation, and it 

 is notable that much of the opposition to the passage of 

 improved and amended legislation so long sought by con- 

 servationists, is based on this feature of insistence on 

 development as a condition of holding leases. 



It is not claimed that the present system is perfect. 



CAZADERO PLANT OF PORTLAND RAILWAY LIGHT AND POWER CO., CLACKAMAS RIVER, OREGON. 



This public-service corporation is planning to develop additional power through new construction under a Forest Service permit, on tlie Oregon 

 National Forest. The plant here shown is not under permit, since it does not involve use of National Forest land. 



The principle naturally striven for, that of a reasonable 

 profit, urges consolidation of power interests and elimina- 

 tion of competition as a means of assuring this profit. 



The present system of leasing effectually prevents 

 artificial restriction of power development. A govern- 

 ment permit is granted only on condition that construc- 

 tion work be begun within a specified time. The appli- 

 cant secures a priority right, and is then given time to 

 prepare surveys and specifications, and to further inves- 

 tigate markets and cost of installation. If he decides 

 that the venture will prove profitable, the lease is granted 

 and actual development work must begin. If not, the 

 permit is cancelled, and another applicant is given oppor- 

 tunity to consider the prospect. The inevitable effect of 

 such a system, provided the terms are equitable, is to 

 secure development at the earliest moment when eco- 

 nomic conditions appear to justify the venture, and to 

 absolutely prevent the holding of power in an unde- 

 veloped condition as a means of influencing the power 



Leases revocable at the option of the Secretary should 

 be made irrevocable (but subject to cancellation on fail- 

 ure to observe the terms thereof) and renewable pre- 

 vious to the expiration of the period of 50 years for 

 which they run. Other modifications are possible with- 

 out sacrificing the principle of national ownership. The 

 Ferris bill (H. R. 1GG73, 63rd Congress 3rd session), 

 embodies the principles for which the advocates of na- 

 tional conservation contend, and to which those who 

 are not opposed on principle to all government control 

 are substantially agreed. But of late there has been a 

 growing movement to repudiate this bill, and it is the 

 probable intention of waterpower interests to attempt to 

 secure from this coming Congress a radically different 

 measure, which will give them absolute control of na- 

 tional waterpowers, free from all interference. The pro- 

 ceedings of the waterpower convention called in Oregon 

 for September should throw some light on this subject. 

 Efforts may be made to confuse the issue of national 



