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The Columbia University Libraries reserve the right to refuse to accept a copying order If, in Its judgement, fulfillment of the order would Involve violation of the copyright law. Author: Westinghouse, George Title: Electricity in tiie development of the South Place: [Atlanta] Date: [1911] f3 ^537-(-3 COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET MASTER NEGATIVE # ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD ■ - - ^t^—^—^ gJ3INES<; 50 W62 Vifestinghouse, George, 1846-1914 • Electricity in the development of the South, with observations on the importance of federal incorporation for small companies engaged in interstate commerce; an address by George West- inghouse before the Southern commercial con- gress at Atlanta, Georgia, IVIarch 10, 1911, 1 1911 J 19 p. 23P", ^ RESTRICTIONS ON USE: TECHNICAL MICROFORM DATA FILM SIZE :S^ iyjiy\ REDUCTION RATIO: 12. X' IMAGE PLACEMENT: lA ( llA^ IB MB DATE FILMED: <^j(?h? INITIALS: _£_! TRACKING # : tt\iH CkOA^ FILMED BY PRESERVATION RESOURCES, BETHLEHEM, PA. > CO A^' A^' ^l^^ %:<^ a? 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WE>2 LIBRARY School of Business Given by F.D.Fackenthal Bc\><>' ' r>* Bii*«tne«« Library Electricity in the Development of the South With Observations On The Importance of Federal Incorporation for Small Companies Engaged in Interstate Commerce AN ADDRESS CyEQRGE WEStlNGHt]^USE r^ , , , •, , BeToi.e THE SOUTHERN COMMERCIAL CONGRESS . - * " « ! : ' • • . At . , - . . ATLANTA, - GEORGIA MARCH 10, 1911 vkLvA>4_ J)5-3'0 • I • I • • • « • •• t * t t • • • * • • i • 1 1 • > t * ( * • t • • • • • • •* • I • • • • > • • • • I • « • • . « « • ( ( I c • ELECTRICITY IN THE DEVELOPMENT OF THE SOUTH. I have been greatly honored by the Invitation of The South- ern Commercial Congress to address this eventful meeting of emment men whose homes are in the South, of eminent repre- sentatives of foreign governments, and of your distinguished guests and well-wishers from the North, who are assembled to celebrate the physical recovery of the South— a recovery in- dicative of that moral health and physical strength which have already had a wonderful Influence in the development of the resources of our whole country, and which will continue to exert tneir force in amazing ways. The Bases of Progress. ^ "The South's Physical Recovery" is the significant head- ing of the program of the Southern Commercial Congress on this occasion In the broadest sense, commercial progress rests upon a physical and moral basis; upon the physical prod- ucts of the mine, the forest, and the field, upon their trans- formation through mills and factories into commercial prod- ucts, and upon the means for transporting them to the con- sumers; and no less upon the moral and spiritual qualities of the race. Upon these foundations the South must depend for its future advancement. No words from me are needed to eulogize the splendid courage of our Southern brothers, and when we consider the happy combination of the spiritual and intellectual qualities of its people with the resources so bountl- fully bestowed upon It by Nature, we of the North might well envy the glorious destiny which unquestionably awaits the bouth, did we not deeply realize our indissoluble union and believe that the achievements of the South will be a source of pride to the North, will add to the lustre of our country's fame, and strengthen Its position among the great nations of the world. I - Present Era Characterized bv Utilization of Me- chanical Power. If we examine broadly the changes which have come about in industrial methods and in the means of transportation since the invention of the steam engine, it will be found that the application of power has been the fundamental factor in bringing about the characteristic conditions of the era in which we live. The steam vessel and the steam locomotive, by revolutionizing transportation methods, made possible the present development of our country. It is the power of the steam engine or the water-wheel which has substituted the power loom for the hand loom, with all the marvelous results which have followed. Similarly, throughout nearly every in- dustry, human muscle is no longer the source of power, for the hand now directs and controls the untiring and unlimited power of great engines. Reduced to its ultimate terms, the vital forces in industry and in transportation come from coal mines and waterfalls, resources with which the South is abund- antly blessed, and the problem is to secure power from these sources and to utilize it in building up the industrial and com- mercial life of the community. Coming Era to be Characterized by Utilization of Electrical Power. Had a Jules Verne sought to imagine some universal ser- vant of mankind, he would well have depicted some magic agent which would apply Nature's forces to do man's work; which could take the energy of her hidden coal, of the air, or of her falling water, carry it by easy channels and cause it to give the light of a million candles, the power of a thou- sand men, or to move great loads faster than horses could travel, to produce heat without combustion, and to unlock chemical bonds and release new materials. No such wonder was pictured by the imagination of the seers of the past ; and yet a subtle force which transcends the powers of the imagina- tion is daily doing all these things — a vitalizing force, which is already stimulating the Physical Recovery of the South. And if we still think of the present as the era of steam and steel, unquestionably the coming epoch, whose dawn we are privileged to witness, will be known as the Age of Elec- tricity. First the toy, and long the mystery of the scientist, electric power is now a familiar tool for the accomplishment of the work and the increase of the comfort and pleasure of mankmd. Although we may not know the ultimate nature of elec- tricity, yet we do know some of its essential laws and methods of controlling and using it. Rapid Development of Electrical Art. During the twenty-five years in which I have been in- timately interested in the electrical art a development has been witnessed which has surpassed the most optimistic predictions At the beginning of this period it was the general conviction that electricity would be limited to local use in the lighting of densely populated districts or the supply of power to ad- jacent factories. Indeed, there had been no developments remotely to foreshadow what has since been accomplished. At that period, however, there had already been developed and operated electric arc lighting circuits of high voltage, ex- tended over rather large areas, with the pressure upon the wires of from 2,000 to 7,000 volts, which practically demon- strated that considerable electric power could be transmitted cheaply if means could be found to utilize safely high-voltage electric current for power and light and for other purposes. But such means were not then known. Necessity the Mother of Invention. It often happens, when something is greatly needed for any great purpose, that as a result of a lively appreciation by many of the existing need there arises in due course invention or discovery which meets the demand. And so it was in the matter of invention and discovery which gave us a simple static device, consisting of two coils of copper wire surrounded by sheets of iron, which could, without an appreciable loss of energy, transform alternating electric currents of high voltage and small quantity, dangerous to life, into low voltage currents of large quantity, safely available for all power, light, heat and other purposes. Alternating Current. To the part I took in bringing forward in the '80s of the last century the alternating current system of electric genera- tion and distribution I owe much, if not all, of the reputation accorded to me as one of the many pioneers in what is now a great and important industry. I • Danger in Restrictive Legislation. The Introduction of alternating current apparatus was bitterly opposed by those who were then exploiting direct- current apparatus, and legislation was sought to prohibit its use because of its alleged danger to life. I mention this in- cident because it clearly shows that restrictiiie laws are not always advantageous, for had the legislation sought by the op- ponents of the alternating current system been secured and en- forced I would not now have any justification for this ad- dress, because the influence of electricity in the development of the South would be too uninportant to entitle it to con- sideration on this occasion. Long-Distance Transmission of Power. As a result of the development of the alternating current and of years of experience in the manufacture of electric trans- formers and of insulators for supporting electric conductors, power is now successfully transmitted by alternating current over distances of two hundred miles or more. Thus water- power in almost Inaccessible places awaits only the coming of engineers and of capital to be made available for industrial purposes. Water-Power Available in the South. It Is estimated by those who have made a study of the sources of water-power of the Appalachian Mountains that there can ultimately be developed from 5,000,000 to 7,000,- 000 horsepower during the dry season of the year, and a much larger quantity at other times. This great water-power is brought by Nature to your mountains and hills In widely varying quantities and will continue indefinitely; but the maxi- mum and minimum flow of the waters of your rivers can be affected by the works of man and by a wise conservation of your forests. Utility of Electrical Energy. Notwithstanding our familiarity with the present uses of electricity, few of us really comprehend how universal and fundamental is the part which electricity Is destined to assume In the life of future generations. Nothing else can convey, distribute and apply power in a way which compares with electricity. From one dynamo can be taken the power for operating the telephone and the telegraph, the power for light- ing, the power for operating street cars and railroad trains, the power for operating mills and factories and mines, the power for electro-chemistry, the power for heating. Elec- tricity IS a universal means of applying power for doing the physical work of the world. It is effective, not only in the application, but in the production of power. Less coal is required for producing electric power on a large scale than is when many individual engines of smaller size are used. VV ater-powers which otherwise would be unavailable are made useful for supplying power to distant cities, and even a mill located at a water-power will give better service when it uses the electric drive. Electricity affords a simpler, better way of doing many things with which we are familiar, and it also makes possible new methods and new developments which, without It, would be impossible. With electric power the mill can draw its energy from any stream within a radius of a hundred miles or more; it may be located on high and healthful ground, on the outskirts of an established town or city where labor is plentiful and trans- portation facilities are the best. In the plan and design of the mill itself there is no longer the necessity for arranging buildings and machinery to be operated from great belts and long shafting taking power from a single source; but individual motors in each depart- ment, or on each machine or loom, enable the whole plant to be laid out so as to give economy in construction, convenience m handling materials, and ensure the safety and health of em- ployees, thus securing a freedom and an excellence which is im- possible without electricity. The oppressive heat of the summer months In the South can be made tolerable by cooling devices and fans operated by electricity, and electric heaters, which are always ready for in- stantaneous service, can be used during the short intervals in the winter when artificial heat is necessary for comfort or health. Conservation of Coal Resources. Furthermore, the use of electricity will conserve the coal deposits of the world for those Industrial processes in the per- formance of which it may always be an indispensable element. To Illustrate what a conservator of the coal resources of the country water-power may prove, I will mention only that to produce from coal for ten hours each day the five million horse- power which may be developed from Southern water-powers would require, with the most efficient kinds of engines, not less !l than twenty-five million tons of coal annually. If there were no water-power available, methods would be adopted for producing power and conserving heat, which would effect a saving of over one-half of the coal now consumed in the world. Here is a field for agitation against waste of our natural resources surpassing all others in importance. The South's Opportunity. Now, what is the significance to the South of these facts? How can the South, which has almost everything before it in the matter of industrial affairs requiring the aid of modern achievement, by foresight and by promptly grasping the op- portunities which are presented to it, hasten its industrial development, increase its wealth, improve the health of its people and increase their happiness? Truly, here are subjects not to be circumscribed by the wisdom and judgment of one man, but calling for the united counsel and effort of the wisest and best among us — requiring not merely the knowledge of the scientist, the skill of the en- gineer and the wealth of the capitalist, but also the broad view, the enlightened experience and the high endeavor of our greatest statesmen. Present Achievements in the South. In the development and utilization of the energy of water- falls, the South has already taken a leading position, and the industrial benefits thereof are so widely and favorably known that no argument is now needed to justify the work already done, or to point out the great and lasting benefits to be de- rived from its extension. Any address on electricity in the South would be incomplete without an expression of high appreciation of the work of the Southern Power Company, begun by Dr. Wylie and de- veloped to its present stage by the Messrs. Duke. This is the largest power-transmission system in the South and is among the most extensive and important in the country. It is not a simple transmission line from a single power house to a single mill or city, but an extensive system which receives power from many power plants on different streams in several States. Hence low water or high water on one river, which might temporarily disable certain plants, has but a slight effect on the whole system. The lines of the Southern Power Company extend 150 miles north and south and 200 miles cast and west, and con- 8 nect mto a smgle hydro-electric power system plants aggre- gatmg 100,000 horsepower. It is a magnificent demonslra- tion of what electricity can do to conserve and utilize water- power in developing the great and growing textile and other industries of the South. The Southern Power Company Is furnishmg light to forty-five cities and towns, and supplying current to six street railway systems, and to hundreds of motors for various uses. This power development is the result of inte ligent and far-sighted business courage and confidence in bouthern affairs, which have inspired and actuated the men who have built up this great enterprise. I am informed that the millions already invested in the bouthern Power Company have not yet yielded even a moder- ate net mcome to those who have put their money into an investment which has benefited others more than themselves by insuring an increase in production and profit to its patrons —a striking evidence of the importance of a generous treat- ment by authorities as well as by those who derive an absolute money benefit. Industries Likely to be Developed. The industries most likely to be developed and to increase because of peculiar suitability to conditions now existing in the bouth are: Textile mills, fertilizer works, cement plants, coal iron copper and gold mining, ore reduction plants, iron and A u -1 J- ^g^^^"^tural implement works, canning factories, road building furniture manufacture, lumber plants, paper mills shoe and leather factories, and oil refineries, in all of which industries electric power increases production. Electricity in Metallurgy. The South abounds in coal and iron, as well as other metals, which can be cheaply mined. Owing to the presence of impurities in the iron ore, especially phosphorus, the pig irons produced in the South have not been considered so suit- ^5 1 xi'^^l manufacture as those made from the purer ores of the North. The electric furnaces for refining steel, which have been recently developed and quite extensively used, will make available the iron resources of the South in the produc- tion of the high grades of steel, and it is no stretch of imagin- ation to foresee that the South will become a large producer 'u^ ^^^ material, and through the cheapness of its labor it will be able to turn these materials into finished products At the same time the slag by-product of blast furnaces will re- main to be used for fertilizing purposes. L Electrical Production of Fertilizers. The South is already a large user of fertilizers, much of which is imported and the supply of which is limited and ex- haustible, nitrogen forming an important part of the ferti- lizers which are commonly used. During the past few years great attention has been given to the development of means for the electric production of fertilizers, and, so much has already been accomplished, it may be said with confidence that the fertilization of our soil within the near future will be largely dependent upon electricity. Most of the material re- quired, coal and limestone, for this purpose is found in the South in unlimited quantities. Were the soil in the United States as carefully tilled and fertilized as in many densely populated countries there would be an immense increase in our agricultural products. Electricity in Cotion Mills. A brief consideration of the special advantages already derived from the use of electric power in the cotton industry will well illustrate the benefits to be gained from the general extension in the use of this wonderful force to odicr fields. The output of cotton mills has been increased and the quality of goods is improved, largely because of the uniform speed attained by the electric drive as compar.ed with power conveyed through belts and lines of shafting. This uniform speed has resulted in an increased production with an increased profit, which in some cases exceeds the cost of the electric power. With electric drives, recording meters can be placed in the circuits which supply power, and the instantaneous power or the total power for any given time can thus be ascertained, a feature of great value to the management in determining whether separate departments of the mill are starting or stopping on time, and whether the full load is kept on the machines during working hours. With electric drives one set of machines or a part of a mill can be operated independently when it is not advantageous or convenient to run the whole mill. When there is a single power house with mechanical drive any enlargement must be conditioned upon the extension of shafting or belting; but with electricity wires can readily be run to any point In the old buildings, or to new buildings. In the territory of the Southern Power Company it was at first difficult to Induce the mill managers to adopt electric power, and It took three years of effort to Introduce ten thou- sand horsepower; then, however, mill managers observed the 10 I W ^ -WJ'^*^ 1^^ advantages of their neighbors who used electric power, ^Ith the result that at the end of the next period of three years electric power had increased to more than 65,000 horsepower, while now there is a total of 80,000 horsepower of electric machinery installed. Of the 300 or more cotton mills in North Carolina, about 25 per cent are now wholly driven electrically. Although there has been a great increase in the number of cotton mills in the bouth in recent years, the mills have been devoted to the production of the cheaper grades of cloth; but it Is pre- dieted that the future growth will not be merely in the num- ber of mills, but will be in the production of the finer grades of cotton fabrics. Generalization. I have sketched briefly the fundamental place which electric power distribution is taking in industrial activities, and I have reterred briefly to what one electric power transmission com- pany is accomplishing in pushing the textile industry in which the South takes just pride. Time does not permit me to catalogue all the possibilities of electricity In the development of this great country. The South has mineral resources to be de- veloped—electrical operation is the established method for mming. The mam railway lines of the South run north and south— electricity enables trolley lines to be run east and west to serve as feeders for the trunk lines, and when electricity Is used tor the operation of your railways, as It will certainly be some day, there will follow a more Intimate relationship be- tween producers and carriers than might otherwise exist. THE FUTURE. ^ Having been asked to speak upon the subject of electrlcltv in the development of the South because of my connection with the electrical industries of the country, it seems to me I cannot tulhll the expectations of those who have planned this con- gress by limiting my observations to matters with which you are more or less familiar from personal experience, or from articles in your daily papers and In magazines; I should also ask you to look forward to what we may expect in the vears to come. ^ Electrical Stimulation of Plant Growth Sugges- tive Experiments. In 1906-7 some experiments were made in England with the co-operation of Sir Oliver Lodge, the eminent English II scientist, In the stimulation of plant growth by electricity. It has been frequently observed that plant growth Is stimulated by electric light, and numerous experiments have been made having for their object the stimulation of the soil by the ap- plication of electric current. The experiments reported by Sir Oliver Lodge in a privately printed brochure on Elec- tricity In Agriculture are briefly as follows : Two tracts of land about twenty acres each were similarly sown or planted. On half of this land poles with Insulators were erected to support the electric wires, only one pole per acre being required for the purpose. The electricity required was produced by a small dynamo driven by a 2-horscpower oil engine and was transformed to a tension of about 100,000 volts of very high frequency. The experiments, which ex- tended over several years, gave remarkable results, an increase of from 30 to 40 per cent, being secured In wheat crops grown on the electrified plot as compared with the crop produced on the unelectrlfied plot. Moreover, the electrified wheat was of a better milling and baking quality and sold at a considerably higher price than that grown on the unelectrlfied plot. Similar experiments with strawberries, mangolds, tomatoes, cucum- bers, beets and carrots showed equally remarkable results. One-year strawberry plants showed in one Instance 80 per cent, increase and more runners produced, while with five- year plants the increase was 36 per cent. In writing to me on this subject In response to my request, in order that I might make a reference to it In this address, Sir Oliver Lodge suggested that the results attained In the experiments referred to and in others would justify an elab- orate series of experiments. These experiments could be usefully undertaken at the stations under the control of the Agricultural Department An explanation given for the excitation of vegetation by these high-tension currents is that high-frequency electrical dis- charges favorably affect the deposit of the nitrogen in the atmosphere into the soil, upon which deposit vegetation so largely subsists. Electricity in the Preservation of Health. Whatever prevents disease and ensures health contributes not only to man's happiness, but also to his efficiency, and it appears that the electric current is to play a very important part in this field. 13 Mercury Vapor Lamps— Ultra- Violet Rays. The outcome of the efforts of one who specializes in any particular kind of apparatus Is often interesting. The de- velopment of the mercury vapor lamp by Dr. Peter Cooper Hewitt has provided a light which Is the least fatiguing to the human eye of all artificial lights, and experimentation with this lamp has led to the development of several other uses ot the mercury vapor arc, one of which is the production In quartz tubes of ultra-violet rays, the effects of which are likely to be of the very highest importance In our daily lives. While these ultra-violet rays are emitted in the quartz tubes they are effectively neutralized by the glass tubes which contain the mercury vapor used in lighting. Sterilizing Water and Milk. One of the important uses to which these ultra-violet rays have already been put has been to absolutely sterilize water however much it may have been contaminated by bacteria Experiments have also shown that the ultra-violet rays will sterilize milk without the application of heat in such a manner that it can be kept In properly sterilized vessels for long periods without deterioration or loss of Its food values. With the growth of population, the pollution of rivers, and the contamination of the water supply upon which our popula- tion must rely, and the difficulty of determining whether the water and milk we use are free from noxious bacteria, this safe and thorough method of sterilization becomes of In- estimable value. The elaborate experiments and demonstra- tions which have already been made at the Sorbonne, In Paris, and at the city water works of Marseilles, France, have not only proved the feasibility of this method of sterilization but have brought out the fact that a i5,ooo.kilowatt generator of electrical energy could sterilize, by means of mercury vapor quartz lamps, as much water as is actually used for drinking and cooking in the United States. Simplicity and Economy of Sterilizing Apparatus. The simplicity of the apparatus for sterilizing water is such that there is no doubt but that it can be advantageously installed in factories and other places, and even in dwellings, adjacent to the point or points where the water is to be used! thus avoiding any possible contamination between the point of supply and the point of use. 13 The electric energy required for the operation of a quartz mercury vapor lamp used for the daily sterilization of 85,000 gallons of water Is about equal to that required for half a dozen ordinary Incandescent lamps. Aging of Wine. Not only have water and milk been sterilized, but In other experiments, also carried on at the Sorbonne, it was found that new wine was affected in a manner to give It the qualities nor- mally attained in years, or an age of apparently many years was given by a few seconds' application of the ultra-violet rays. These experiments and Investigations suggest that uses for the ultra-violet rays will be found which have not yet been con- ceived. Mercury Vapor Rectifiers May Supplant Rotary Transformers. An Important use of the mercury vapor apparatus has been to transform or rectify alternating currents into continuous currents, and some recent experiments Indicate that this can be done on a large scale with a considerable saving of elec- trical energy. These promising results foreshadow the dis- appearance of the costly rotating apparatus which is now used for that purpose in the operation of railways, and for pur- poses where the use of a continuous current Is advantageous. HERTZIAN WAVES. Possibilities in Wireless Transmission of Electrical Energy. The transmission of electrical energy through the atmos- phere without wires has, in a very few years, so far advanced that wireless telegraphy is now an important feature of our daily life. We read of instances where wireless messages have been received at a distance of over 3,000 miles from the point at which they were sent, and it is said that we shall shortly have regular wireless communication between Paris and New York. 14 Wireless Telephony. Not only has it been possible to communicate by wireless m the Morse code, but it has been found that, with suitable apparatus, telephone conversations can be carried on over con- siderable distances, and It is expected that by improvement in the apparatus conversations can be carried on over verv con- siderable distances. Portable Wireless Telephones. Investigations, of which there Is almost daily mention in the public press, indicate such great simplification in wireless telephone apparatus that we may, within the quite near future have placed at our disposal a simple portable apparatus which will permit wireless conversation to be carried on over a con- siderable area. This will prove of great value in sparsely settled districts. Frequency, Power and Possibilities of Hertzian Waves. It may Interest you to know that the frequency of the elec- trical waves sent out by some forms of wireless transmitters approaches a million per second, and that either by an increase in the amplitude of these vibrations or by a more sensitive re- ceiver, the distance over which these waves (which undoubt- edly extend to Infinite distance) may be recorded, can be greatly increased In an experiment made by Dr. Peter Cooper Hewitt with powerful wireless transmission apparatus, Including a mercury vapor Interrupter, it was found that the effect of the hlgh-fre- quency discharge upon the iron in the building occupied, such as water and heater pipes, quickly produced incipient fires within the room where the apparatus was erected, thus dem- onstrating the wonderful power of this incomprehensible force and suggesting great possibilities in the transmission of electrical energy without wires. Wireless Signaling and Distant Control. The transmission of electric energy without wires, which will be especially valuable for signaling purposes and for the control of machinery at a distance, will undoubtedly play a most important part In army and navy operations. 15 RADIUM. Lord Kelvin — Indication of Form of Energy Not Yet Known. We are hearing and learning more and more in regard to the power of radium, and predictions have been made that it will some day furnish power in great quantities. This I very much doubt. The popular belief is that radium constantly produces heat and light without an appreciable loss In its weight, and that it will continuously produce heat. Lord Kelvin, whom I had the honor of knowing, was greatly in- terested in the discovery of radium by Madame Curie. In one of the last conversations I had with him, I ventured to give a conception of the cause of the "production" of heat by radium, my idea being that radium acts as a transformer of one of the forces of ether into some other form of force, and that in such transformation heat is produced. Lord Kelvin, who had studied the subject, said that he had already arrived at the same conclusion on the general hypothesis that neither heat nor light can be produced without energy. I refer to this because of the Indication that there exists a form of energy of which we have as yet no knowledge, but which may yet be- come available to us as a result of further discoveries. PRACTICAL CONSIDERATIONS. Co-operation Should Be Compulsory'. The advantages of co-operation in the matter of the de- velopment and supply of electricity, having regard to a les- sening of the cost and insuring the certainty of supply, cannot be overestimated, and those already secured by operations on a large scale are well known. Further co-operation in this great work for the benefit of the public, if not voluntary in the future, should, in my opinion, be an enforced one, notwith- standing the outcry which has been raised by the ill-informed with reference to an imaginary monopolization of the water- power of the Nation. Encouragement and Regulation by Legislation. Encouragement should be given to the investment of capital in the development of these enterprises under such wise and i6 reasonable regulation as will insure economy in the construc- tion and operation of plants, adequate returns to the capital invested, and at the same time protect the consumer against exorbitant rates and charges or unfair discrimination. Federal Incorporation the Solution of Many Diffi- culties. In the larger industrial developments which I foresee for the South there are other Important factors which equal In importance the development of the water-power resources upon which I have dwelt. I have particularly In mind those existing restrictions which make It difficult and expensive for a small corporation to carry on conveniently and in a simple manner its business with ramifications in several States, restric- tions which, however, the great corporations of the country can easily surmount by reason of their financial ability to organize separate subsidiary companies In those States where such an expedient Is rendered necessary to meet legislative require- ments. I have long held that a Federal Incorporation Act, which the President advocates, under which all companies doing an interstate business could organize, would be a solution of the difficulties which are now almost Insurmountable, and which are being added to in an alarming manner in the endeavor of the Legislatures of the several States to curb a few of the tens of thousands of companies and firms doing an interstate busi- ness. Protection of Minority Owners. After having read and carefully studied the bill providing for Federal incorporation, which was Introduced In the long session of the present Congress, I am constrained to say I would prefer to see a Federal law In terms more easily com- prehended by business men and devoid of those provisions which would give to a privileged few a practical control of a corporation by expedients which have been skilfully developed and which are now looked upon as a matter of course. I have in mind particularly the depriving of minority owners of possible representation by the formation of voting trusts and the election of directors in classes, methods which can, and often do, defeat the purposes of laws which have provided for cumulative voting whereby a substantial minor- ity can insure the election of at least one member of a board of directors. 17 li rig Directors Should Be Large Shareholders and Elected Annually. In my judgment, each director of a corporation should be required actually to own a substantial interest in the shares of the company, the affairs of which he aids to control, and the term of office should be only from year to year. To make my meaning clearer I will illustrate by supposing that a com- pany had, by appropriate by-laws, established a board of five directors, only one of whom could be elected each year. Ob- viously, the provision of the law for cumulative voting would have no meaning in the government of the affairs of such a company. It may be unorthodox to say this, but it is my conviction that the conduct of a business without profit is disadvantageous to the community at large because of its demoralizing effect on the industry and its Influence upon others. A Federal in- corporation act should provide for a statement, on prescribed forms, of the assets and liabilities of each corporation taking advantage of its provisions. This statement should be avail- able to all who are asked to extend credit to the corporation. The disadvantage to a company of doing business at a loss under such conditions need not be enlarged upon. Each of the great corporations of to-day had its origin In a business established by an individual or small company based upon the skill and efforts of one or more individuals. The development of the South must be more or less rapid accord- ing as the work of such men is appreciated and encouraged, especially during the period of strenuous effort necessary to the building up of large and prosperous Industries from small beginnings. the instructions of superiors. President Taft's statement that the introduction of military discipline in the schools and col- leges of the land, in the advantages of which all would partici- pate, would be of greater benefit to our country than the high development of athletics by a few, is worthy of most serious attention. The present pre-eminence of Germany in industrial matters arises very largely from the military training and disciphne to which each of her citizens must submit I CONCLUSION. Advice to Young Men — Value of Military Discip- line. In conclusion, I urge the young men of the South to make themselves familiar with Industrial affairs by learning to be proficient in the use of their hands as well as In the use of their heads. My early greatest capital was the experience and skill acquired from the opportunity given me when I was young to work with all kinds of machinery, coupled later with lessons in that discipline to which a soldier is required to sub- mit, and the acquirement of a spirit of readiness to carry out i8 19 COLUMBIA UNIVERSITY LIBRARIES This book is due on the date indicated below, or at the expiration of a definite period after the date of borrowing, as provided by the rules of the Library or by special arrange- ment with the Librarian in charge. DATE BORROWED ksrt TSS DATE DUE DATE BORROWED DATE DUE C28Cn4l)M100 war'^>^-^^mm.^••J D550 W52 ,Westinghouse, George Elect rioity in the development of the South. of the South. I I y/^.w y. i-.. J) SSO WSA COLUMBIA UNIVERSITY LIBRARIES 0044269420 /w$/y o'ioti^ OCT181994 NEH I! IN 21 iy4;-< R ■m 'Ml 1 m m.i ■;.ir: i END OF TITTI C