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CONSERVATION 



Westinghouse interests, similarly known, 

 about 180,000 horse-power, and by other large 

 power companies, 875,000 horse-power. This 

 makes a total of 1,307,000 horse-power. Adding 

 the horse-powers of the third class (c), those 

 whose connection with these two great in- 

 terests is at least probable, to-wit, 520,000 

 horse-power, we have a small group of thir- 

 teen selected companies or interests con- 

 trolling a total of 1,827,000 horse-power. 



Assuming that the water-power at present 

 in use by water-power plants in the 

 United States is 5,300,000 horse-power, as 

 estimated by the United States Census and 

 Geological Survey from figures of installa- 

 tion, it is seen that approximately a quantity 

 of horse-power equal to more than thirty- 

 three per cent of that amount is now probably 

 controlled by this small group of interests. 

 Furthermore, this percentage by no means 

 tells the whole truth. The foregoing powers 

 naturally represent a majority of the best 

 power sites. These sites are strategic points 

 for large power and market control. Poorer 

 sites will not generally be developed until 

 these strategic sites are developed to their 

 full capacity. And should these strategic 

 sites be "coupled up" they become still more 

 strategic. There are _ powerful economic 

 reasons for such coupling. The great prob- 

 lem of water-power companies is that of the 

 "uneven load," and not only an uneven load 

 but of an uneven source of power, because 

 of the fluctuating flow of the stream. A 

 coupling up utilizes not only the different 

 storages in the same drainage basin, but, of 

 still greater import, the different drainage 

 flows of different basins. Also by coupling 

 up, powers which have largely "day loads" 

 can at night help out other powers which 

 have largely "night loads," and vice versa. 

 Coupling up is rapidly in progress in the 

 United States. The Niagara Falls Power 

 Company and the Canadian Niagara Power 

 Company are coupled. The Southern Power 

 Company, in North Carolina and South Caro- 

 lina; the Commonwealth Power Company, in 

 Michigan; the Pacific Gas and Electric Com- 

 pany, the Pacific Light and Power Company, 

 and the Edison Electric Company, in Cali- 

 fornia each concern has its various develop- 

 ments coupled up into one unit. 



The economic reasons urging water-power 

 concentration are thus obvious. The facts 

 set forth above show the very rapid and very 

 recent concentration that has already oc- 

 curred, practically all in the last _five years. 

 These economic reasons and business facts 

 indicate clearly the further progress toward 

 concentration that is likely to occur in the 

 near future. It is obvious that the effect on 

 the public of such present and future condi- 

 tions is a matter for serious public considera- 

 tion. 



In his veto message the President re- 

 fers to the facts stated in this letter, 

 and says : 



The total water-power now in use by 

 power plants in the United States is esti- 

 mated by the Bureau of the Census and the 

 Geological Survey as 5,300,000 horse-power. 

 Information collected by the Bureau of Cor- 

 porations shows that thirteen large con- 

 cerns, of which the General Electric Company 

 and the Westinghouse Electric and Manu- 

 facturing Company are most important, now 

 hold water-power installations and advan- 

 tageous power sites aggregating about 

 1,046,000 horse-power, where the control by 

 these concerns is practically admitted. This is 

 a quantity equal to over nineteen per cent of the 

 total now in use. Further evidence of a very 

 strong nature as to additional intercorporate 

 relations, furnished by the bureau, leads me 

 to the conclusion that this total should be in- 

 creased to twenty-four per cent; and still 

 other evidence, though less conclusive, never- 

 theless affords reasonable ground for enlarg- 

 ing this estimate by nine per cent additional. 

 In other words, it is probable that these thir- 

 teen concerns directly or indirectly control 

 developed water-power and advantageous 

 power sites equal to more than thirty-three 

 per cent of the total water-power now in use. 

 This astonishing consolidation has taken place 

 practically within the last five years. The 

 movement is still in its infancy, and unless 

 it is controlled the history of the oil industry 

 will be repeated in the hydro-electric power 

 industry, with results far more oppressive 

 and disastrous for the people. It is true 

 that the great bulk of our potential water- 

 power is as yet undeveloped, but the sites 

 which are now controlled by combinations 

 are those which offer the greatest advantages 

 and therefore hold a strategic position. This 

 is certain to be strengthened by the increas- 

 ing demand for power and the extension of 

 long-distance electrical transmission. 



Facts like these, supplemented and 

 emphasized by such papers as those of 

 Mr. John L. Mathews in Hampton's 

 Magazine, quoted elsewhere in part in 

 this issue of CONSERVATION, throw light 

 upon the question as to whether the ex- 

 istence of a "water-power trust" is to 

 be dismissed with a sneer. 



Yet over against the above should be 

 placed the statement of Mr. Ormsby 

 McHarg, who, he says, "in the late 

 campaign was put in charge, by Mr. 

 Hitchcock, of nine far western states," 

 and is now Assistant Secretary of Com- 

 merce and Labor. 



In a column-and-a-half interview 

 published August 28 in a Washington 

 paper attacking the Forest and Reclama- 

 tion Services, he says: "The talk of a 

 gigantic -water-power trust being form- 

 ed to lay a heavy tribute on all posterity 

 of the land is the veriest nonsense." 



