268 UNITED STATES FOREST POLICY 



along this stream anywhere to build a dam and reservoir and create 

 power. Now, we will not let you buy this land. There is no price on it. 

 You can not condemn or buy it. We will lease it to you for a period 

 of years, and will not simply charge you a rental for the land, but we 

 will impose a charge that will be equivalent to a tax upon the value 

 of your plant and the proceeds of your entire business.' "^^ In some- 

 what similar vein. Representative Taylor of Colorado complained of 

 the effort of the government to get water power companies to pay 

 royalties into the Federal treasury, pointing out that the East was 

 not paying any royalty for the use of its water."^ 



There has been much dissatisfaction also with that provision of 

 the law which authorizes the revocation of permits at the discretion 

 of the government. It is urged that on account of this clause, it is very 

 difficult to obtain capital for development. Water power development 

 is said to have cost many capitalists their fortunes, even when the 

 terms were most liberal, and the restrictive policy of the government 

 is claimed to have made the field even more uncertain. 



There is a large element of justice in the complaints of western men 

 regarding the water power situation. It is easy to see how they would 

 resent the payment of rentals to the government. As far as conserva- 

 tion is concerned, it appears that the speedy development of water 

 power resources would be an excellent means of conserving other 

 resources, furnishing electric power for railways and for other pur- 

 poses, and thus saving the coal and oil and wood which are now used as 

 fuel. This would greatly decrease the number of forest fires also, since 

 a large proportion of such fires are started by locomotives, and so 

 would conserve the supply of timber. It might easily seem that the 

 government should encourage the development of water power in every 

 way possible, instead of imposing a tax upon it. 



In answer to this, however. Forest Service officials argue that it is 

 not unreasonable to impose some charge for the use of a valuable 

 natural resource, and point out that by requiring the payment of this 

 charge, and by requiring development to be made within a reasonable 

 time, they have been able to keep better control of the water power 

 situation, and keep out speculators who otherwise would have appro- 



20 Cong. Bee, Mar. 7, 1912, 2991. 



21 Cong. Rec, Mar. 2, 1911, 4016. 



