132 BULLETIN" 102, VOL. 1, UNITED STATES NATIONAL MUSEUM. 



joyed, to the gain, perhaps, of even better interest rates than may be 

 calculated from the unqualified analogy. Not only would this sta- 

 bility be inherent in the transmission line development itself, but 

 would reflect a similar measure of soundness upon the projects 

 concerned with the development of power sites and the establish- 

 ment of power plants, so that the field of power operations in its en- 

 tirety would benefit. The recognition of public backing would 

 transfer the whole matter from the type of investment sponsored 

 by the professional promoter to the realm of securities represented 

 by bonds of a substantial and conservative standing. And since the 

 cost of money is the major expense attached to the developments, 

 Ihe reduction of this factor would reflect in increased proportion in 

 the lowered price of electric power.^ 



In the second place, a special common-carrier system under pub- 

 lic oversight would serve to give the proper temper to the appre- 

 hension of the public in respect to surrendering what is now 

 conceived to be its natural rights, thus breaking the deadlocked 

 issue that has so long contributed to the sluggishness of hydro- 

 electric developments; while the apathy surrounding the matter 

 of coal-field generation of electric power would be replaced by 

 conditions making for the profitable establishment of this activity. 

 The public, seeing its interests properly safeguarded, can be counted 

 on for sympathetic support of the movement; while industrial in- 

 terests in general, being in the business of manufacturing commodi- 

 ties rather than energy, will find it natural to favor any action 

 that would facilitate the supply of energy — an accessory to their 

 operations — just as they are keenly interested in any constructive 

 measures that would be likely to ease off the labor problem. 



The experience of this country has shown that the conduct of 

 the common-carrier systems must be subject to public oversight. 

 At the same time, it has been amply demonstrated that, for the sake 

 of safeguarding private initiative and business enterprise, this over- 

 sight should be called into play as slightly as conditions permit.^ 

 Applying these concepts to the proposition in hand, we reach the 

 conclusion that while it is necessary that a system of electric trans- 

 mission lines should be of a common-carrier, public-utility order, 



1 It should be mentioned that in many instances the development of water-power sites 

 involves the provision of facilities for navigation and irrigation. These attendant activi- 

 ties would be in the nature of by-products, so to speak, over the gain to be derived 

 on the score of power, and as such they should weigh in outlay calculations as joint 

 sharers in ihe expense apportionment. The provision of a lower money cost for water- 

 power development, therefore, would reflect advantages over a wider scope than is em- 

 braced even in the broad item of power usage, 



2 While there can be, of course, no universal agreement to premises of this Ifind, these 

 two conditions are believed to represent fairlj the common sense of the country in this 

 matter. They certainl.y involve no violent assumptions, for both for some time have 

 been guiding influences in the destiny of the Nation. 



