FORESTS, RESERVOIRS, AND STREAM FLOW 307 
available which was not available before, either by building dams, as at 
lock sites, and thus creating a head, or by storing water which might 
supply powers below with more than they would have without, the 
value of the power thus rendered available should return to the Govern- 
ment $20 per horse-power per annum—an “exceedingly low price,” as 
Mr. Leighton puts it.* 
It is not understood that the Government is to build the power 
plants, but that this is to be done by the interests availing themselves 
of the privilege. Estimates of undeveloped water-powers on many 
streams of the Atlantic slope, by the Geological Survey, leave one to 
infer that these powers are considered worth at least $20 per horse- 
power to the Government even without dams or reservoir aid. While 
the statements are not clear as to what is actually meant, the various 
references to resources to be derived by the Government from these 
powers lead to the above conclusion. It would be of advantage in con- 
sidering questions involving these published estimates, if the basis 
for this $20 price or royalty could be made more specific. 
Under present conditions, or such as can be reasonably foreseen, 
no such royalty is possible except in extraordinarily favorable circum- 
stances. Efforts which have been made to derive a satisfactory revenue 
from existing powers do not justify any such prospect. The many 
and various practical difficulties in exploiting these powers are rarely 
appreciated by those who have not encountered them in actual experi- 
ence. The cost of water-power development is restricted to narrow 
limits, if it is to compete with coal. An engineer of high standing 
whose life-work has been connected with water-power development says: 
“I am advised that, with good coal at $2.00 per ton in this territory, 
the cost of fuel per horse-power per annum (300 days of 24 hours each) 
is less than $8.00 for producer gas engines and for steam power about 
$12.50 in large size equipments. In many localities coal will cost even 
less than $2.00 per ton, allowing thus a still wider margin. If we now 
consider the usual and unavoidable handicaps and incumbrances to 
all water-power installations, such as floods, low water, ice-flow, back 
water, etc., etc., we have conditions which will make it a serious study 
- for any power consumer to determine if the balance is not considerably 
against water-power in that particular territory, at this time, from a 
purely commercial standpoint. At any rate it must be obvious that no 
such rate as $20 per annum per horse-power can be paid to the 
*“On the Youghiogheny alone, where it is proposed to install a slackwater sys- 
tem comprising three locks and dams, at an expense of $600 000, proper development 
of storage will insure the production of a minimum of 4100 h. p., the value of 
which, reckoned on the exceedingly low price of $20 per horse-power-year, would 
produce a total income of $82 000.” 
