36 
BULLETIN 102, 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 promotor 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, 
the reduction of this factor would reflect in increased proportion in 
the lowered price of electric power . 1 
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 . 2 
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 . 3 
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 he 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 the 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 See pp. 12-15. 
3 While there can be, of course, no universal agreement to premises of this kind, these 
two conditions are believed to represent fairly the common sense of the country in this 
matter. They certainly involve no violent assumptions, for both for some time have 
been guiding influences in the destiny of the Nation. 
