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PRESS BULLETIN No. 175 
 
 OF THE 
 
 N. C. GEOLOGICAL AND ECONOMIC SURVEY 
 
 JOSEPH HYDE PRATT, State Geologist 
 Chapel Hill, N. C. 
 
 Released for Publication August lO. 1920 
 
 THE WATER POWERS OF NORTH CAROLINA 
 
 INTRODUCTION 
 
 By Joseph Hyde Pkatt 
 
 The North Carolina Geological and Economic Survey is constantly 
 receiving requests for information regarding the water powers of the 
 State, for assistance in making preliminary surveys of water powers, 
 and for information regarding and assistance in developing the small 
 water powers for use in connection with farms. Although many of the 
 larger water powers of the State have already been developed there yet 
 remain many water powers capable of developing from a few thousand 
 to thirty thousand horse power not yet developed, besides hundreds of 
 smaller water powers from one hundred to a thousand horse power, 
 and innumerable smaller water powers that could be utilized by farms 
 and communities. The manufacturing industries of North Carolina 
 could and would use many thousands more horse power if same was 
 available. The utilization of more of our water powers would reduce 
 that much the demand in this State for fuel and would make it possible 
 to develop manufacturing industries where now it is impossible to do 
 so if dependent upon coal as a source of fuel. 
 
 Certain legislation is necessary before it will be possible to develop 
 the water powers to the extent that they should be developed in this 
 State. The water power situation in North Carolina has been very 
 carefully studied by Mr. Thorndike Saville, Hydraulic Engineer of the 
 Survey, and he presented the results of this study before a meeting of 
 the State Chamber of Commerce at Wilmington, N. C., July 21, 1920. 
 This discussion is given here in full. 
 
THE WATER POWER SITUATION IN NORTH CAROLINA* 
 
 By Thorndike Saville 
 
 Hydraulic Engineer, N. C. Geological and Economic Survey 
 
 The discussion of the water power situation in a state before such a gather¬ 
 ing as this is most easily (and I might say most commonly) treated as a 
 mere glorification of the water power resources of the state. It would be 
 easy to discourse to you upon these resources; point out to you that North 
 Carolina contains more undeveloped water powers than any other state east 
 of the Mississippi, excepting only New York; describe the location and 
 extent of our magniflcient streams and falls which might be utilized for power; 
 and enumerate almost without end the superiority of this state in such nat¬ 
 ural advantages. Instead, if you will permit me, I wish to undertake the 
 less agreeable task; to dwell in a somewhat critical, but I trust constructive, 
 manner upon the backwardness of this state in utilizing the tremendous re¬ 
 sources with which nature has favored her; to consider the effects of extra¬ 
 state developments of our powers, and of the recently enacted Federal Power 
 Bill; to outline certain definite plans which the State Geological and Economic 
 Survey now has under way for the immediate exploitation and development 
 of North Carolina water powers; and finally to request your active cooper¬ 
 ation in urging the necessary legislative and financial assistance which is vitally 
 important if the prosperity and industrial growth inherent in our water powers 
 is to remain the property of the people of this state and be developed for 
 their advantage. 
 
 North Carolina has been peculiarly favored by nature in two great natural 
 resources; her forests and her streams. Each year, through lack of scientific 
 administration and control the state, its industries, and its citizens lose mil¬ 
 lions of dollars by non-utilization or malutilization of these resources. It is 
 not my province here to do other than mention the waste and destruction of 
 our forest lands. The State Geological and Economic Survey has readily 
 available the details of this enormous annual loss. As you have seen from the 
 data furnished to your temporary Secretary and published for the convention, 
 recent estimates place the undeveloped water powers of the state at approx¬ 
 imately one million horse power. This is continuous, or 24-hour power. At 
 5 cents per kilowatt hour, this would amount to $4,000,000 per year. It is 
 probable that with storage, inter-connection of units, and other commercial 
 practices, that this annual return could easily be doubled. 
 
 The manufacturing industries of North Carolina are even now clamoring 
 for more power. This state, second in the entire country in the manufacture 
 of cotton goods, is only upon the eve of a tremendous industrial expansion. 
 New enterprises demand electric power, established industries are rapidly 
 changing from steam or water driven plants to motor drive, and those equipped 
 with machinery turned by water wheels or turbines are changing their oper¬ 
 ation to utilize the water power for driving electric generators which in turn 
 operate individual motors and so greatly increase plant flexibility. 
 
 New industries desiring to establish themselves in more than one city in this 
 state during the past year have been forced to abandon their plans and locate 
 elsewhere on account of inadequate power supply. Within the past week the 
 State Survey has had an inquiry as to water power available for operating 
 electric furnaces. We can only point out to the company which may desire to 
 locate here the districts where suitable water power and rail facilities exist; 
 
 * Address before State Chamber of Commerce, Wilmington, N. C., July 21, 1920. 
 
 2 
 
3?/ 3 
 
 there is no surplus of developed power in the state. .More power must be 
 quickly made available if the manufacture of North Carolina products is to be 
 retained and fostered within the state. 
 
 The railroads of the state, particularly those whose lines contain the steep 
 grades of the western districts, are already interesting themselves in electrifi¬ 
 cation. If the activities of the South Atlantic States Association meet with 
 the expected success, trade from North Carolina ports will he heavily stimu¬ 
 lated, with consequent increased freight movements. A large part of the 
 present freight congestion is due to the enormous quantities of coal carried 
 by the railroads, of which in many instances 50 per cent is consumed in their 
 own locomotives. Electrification then works a triple saving; in more efficient 
 power, in decreased freight movement, and in conservation of a depleted 
 natural resource. 
 
 The locomotive is about 6 per cent efficient, the best steam power plant 
 about 15 per cent efficient, and an ordinary hydro-electric plant 85 per cent 
 efficient. Added to the low efficiencies of steam plants, is the ever mounting 
 cost of coal and oil, and the difficulty in obtaining them. Moreover, the use 
 of electricity usually means decreased labor which is no mean advantage in 
 these days of labor difficulties. Most North Carolina manufacturers have 
 felt these troubles acutely. The keenest sort of competition will meet the new 
 industrial development of the South. Only decreased cost of production will 
 enable this section to hold its own. The use of its great resources of hydro¬ 
 electric energy seems the most immediate and desirable method by which this 
 state may take its place as a great industrial as well as agricultural com¬ 
 munity. 
 
 Nor are the manufacturing industries alone concerned in the matter. The 
 vast agricultural interests of the state have not yet turned in any degree to 
 the utilization of electricity. The increasing difficulty in obtaining farm labor, 
 the high wages, and necessity for using labor saving machinery on the farm, 
 should cause North Carolina farmers to turn their eyes westward to Cali¬ 
 fornia, Washington, and Oregon. A network of transmission lines traverses 
 these states, linking together steam and water power plants. In Oregon alone 
 some 12,000 h.p. is sold in strictly rural districts. In all of these states, and 
 in large agricultural districts in Canada, farmers take their power from the 
 transmission lines. The result is not alone more and cheaper power, but the 
 improvement of rural living conditions consequent upon electric lights, water 
 supply, electric washing and sewing machines, etc. Will not similar devel¬ 
 opments be called for in this state, rich as it is in potential hydro-electric 
 power ? 
 
 It is estimated that about 325,000 h.p. of electrical energy is developed 
 by water power in North Carolina. Of this some 200,000 h.p. is either trans¬ 
 mitted for use outside the state, or used by a very few large industries which 
 have developed their own power. Only about 125,000 h.p. of all that developed 
 in the state is available for general use. Of this about 95,000 h.p. or 7G per cent 
 is controlled by two large hydro-electric corporations. Both of these corpor¬ 
 ations have stated recently that they were sold out on all power now devel¬ 
 oped, and that they were not in a position to develop new sites in the im¬ 
 mediate future to supply the increased demand for power. Most of the re¬ 
 maining 30,000 h.p. of hydro-electric power is developed by individual man¬ 
 ufacturing enterprises or by municipalities, and in every case by relatively 
 small developments. 
 
 The requirements for power in North Carolina are considerably in excess 
 of the supply even at the present time. So conservative an authority as 
 “Electrical World” estimates that we shall need 219,000 h.p. in excess of our 
 present supply by 1930. This is an increase of 68 per cent in less than ten 
 years. The demand for additional power is insistent and ever increasing. 
 How shall it be met? The high prices of materials and labor, restrictions irn- 
 
 3 
 
 
/ 
 
 posed by public service commissions, and until lately unfavorable regula¬ 
 tions relative to developments upon public lands, have made it difficult for 
 hydro-electric corporations to obtain funds for new construction. The initial 
 expenditure for construction of large dams, power houses and transmission 
 lines is today very great, and the return on the investment is often not such 
 as to attract private capital for general power supply developments. 
 
 It seems probable that for the next few years, critical years so far as the 
 industrial growth of the State is concerned, will see no great additions to the 
 water power developments of public service corporations now controlling the 
 greater part of the general power supply of the State. Immediate power 
 development may be accomplished in one of three ways: by the individual 
 manufacturer; by the municipalities, acting as corporate bodies or through 
 local public service corporations; by state-constructed developments leased to 
 operating companies or municipalities. 
 
 The manufacturer now seeking to establish new industries or additional 
 factories utilizing electric power must depend either upon power furnished by 
 the municipality, or look about for a locality where he can himself develop a 
 water power of suitable magnitude. The problem of municipally-supplied 
 power is considered in the following paragraph. If the manufacturer wishes 
 to develop his own power he has numerous possibilities upon which to draw. 
 There are a number of streams in the northwestern portion of the state which 
 are admiralty situated as regards moderate water power sites, which can be 
 economically developed, and which are near rail connections. The State 
 Geological and Economic Survey has had a field party within the last month 
 investigating the power resources of Surry County. On the Ararat Iiiver have 
 been discovered two or three possible developments, which are not more than 
 five miles from excellent rail connections. A factory built near the railroad 
 needs only to develop one of these sites, build five miles of transmission line, 
 and it is independent, so far as power is concerned. This is only one example 
 of the streams of this district, which are unusually well adapted by constant 
 flow and good dam sites for developments of from 500 to 2,500 h.p. Similar 
 possibilities exist in other sections not yet covered in the detailed investigations 
 of the Survey. 
 
 Progressive municipalities in the state are many of them becoming alarmed 
 at the power shortage, seeing industries locating elsewhere, and the growth of 
 the city stopped from dearth of power. Finding it impossible to obtain more 
 power from the hydro-electric corporations they are contemplating municipal 
 developments of water power sites. Many of our larger cities are well situated 
 for this purpose near undeveloped sites. They can afford to spend large sums 
 in such developments at a small rate of interest on the investment, since the 
 difference between what their plant may earn and what stockholders in a 
 private company would demand is the benefit accruing to the municipality 
 through the mere possession of power and the industry which it attracts. Such 
 a return is intangible, but very real, and of benefit to every element in the city. 
 At the present time the Survey is conducting an investigation for a large city 
 in this state, to indicate the best location for a municipal water power develop¬ 
 ment. 
 
 It is highly desirable that the smaller developments made by individual 
 concerns or municipalities should be tied into one controlling system. More¬ 
 over, there are numerous cities and towns not so located or financially situated 
 as to be able to make their own developments, and a large additional supply 
 of general power is now needed in the state. For these purposes sveral large 
 developments are desirable. The larger water powers of the state are inherently 
 a natural resource, the utilization and enjoyment of which is essentially an 
 attribute of the state itself. The eastern states having large water power re¬ 
 sources are coming to the view which has long prevailed in the West: namely, 
 that the state should assert its right to the control of water powers of the 
 larger streams, and revoke the reparian laws in so far as they prevent power 
 
 4 
 
development by the state. Under present conditions the state can better afford 
 than any other agency to construct large dams and the appurtenances of hydro¬ 
 electric developments. The state can get money more cheaply and can condemn 
 land by eminent domain where selfish owners hold out for unreasonable sums. 
 It can use these major developments as controls into which the smaller powers 
 may be connected. It may then advantageously lease them to operating com¬ 
 panies for a term of years. This solution of the power problem has worked 
 wonders in the Canadian provinces, is in partial operation in several states, 
 •and is advocated by many state conservation commissions. 
 
 A most important phase of state interest in water powers lies in the adminis¬ 
 tration and supervision of all the water resources of the state. In nearly all 
 of the larger water power producing states in this country, North Carolina 
 excepted, there is now legislation giving to the State Geological Survey or Con¬ 
 servation Commission authority to control and regulate the development of 
 water powers and water supplies in the state. The construction of great dams 
 and impounding reservoirs have far reaching consequences quite aside from 
 their relation to power development. Indeed, in New York the creation of 
 water powers has been made subsidiary to reservoirs for flood prevention, and 
 the Conservation Commission passes first on this phase of projected develop¬ 
 ments. In North Carolina especially, should the regulation of flood flows be 
 considered, with the attendant erosion of hillsides and destruction of valuable 
 •agricultural bottom lands, together with the silting of navigable streams. 
 Inland navigation is destined to play an important part in the local transporta¬ 
 tion problem, and rivers should not be forever closed to navigation by the con¬ 
 struction of dams unprovided with locks. In many power reservoirs in this 
 state silting has so far reduced the available volume of storage that the effi¬ 
 ciency of the plant has been greatly impaired. The stability of great dams 
 necessary for water power and water supply purposes is essentially a matter 
 of public safety, and as such concerns the state. To interrelate development of 
 the state’s water resources, and for proper consideration of all of the economic 
 engineering and social factors involved, it is believed that a properly qualified 
 state board should pass on all projects for power development. Such an organi¬ 
 zation is operative in most other states. 
 
 A further reason for such control is that with the development of the smaller 
 water powers, either by municipalities or by individuals, or as part of a larger 
 scheme, it is vitally necessary that they be inter-connected into a larger system 
 for efficient regulation. The hydro-electric industry is by nature essentially 
 monopolistic. For greatest, or even moderate, efficiency the individual develop¬ 
 ments of a district or state or group of states must be inter-connected. While 
 the immediate future may see many small developments in this region, there 
 w r ill be a strong tendency for these to be amalgamated into a larger system, 
 either with those now existing in the state, or in some combination of these, or 
 by state control. In any event, to provide for systematic development, prevent 
 private monopoly, and agreements in restraint of trade or for controlling prices, 
 and to ensure continuous operation and service at the least cost to consumers, 
 there is needed immediately a law authorizing the regulation and control of 
 all the water resources of the state, in order that future developments may be 
 harmonized, and may be carried on in a systematic manner for the best advant¬ 
 ages of the state. 
 
 The water resources of the state are the inalienable heritage of the people 
 of the state. The administration and control of them inheres in the state and 
 not in the nation. The enactment of the federal water power bill is of vital 
 concern to all states, since the powers of the national government under the 
 terms of this bill are so sweeping as to seriously atfect state contiol of its 
 water power resources unless certain provisions are made. The Power Com¬ 
 mission is authorized to issue licenses for and administer the operation of 
 water powder developments upon the “navigable waters of the United States, 01 
 upon any part of the public lands and reservations . . . and to diieet the 
 
 5 
 
construction, maintenance and operation of headwaters or other improvements: 
 of streams upon which the Commission is empowered to issue licenses.” This is 
 a very comprehensive provision, but the act further provides that applicants 
 for federal license must have “complied with the requirements of the laws of 
 the state or states within which the proposed project is located” relating to 
 use and manufacture of power and that nothing within the act “shall be con¬ 
 strued as affecting or intended to affect * * * the laws of the respective 
 
 states relating to the control, appropriation, use, or diversion of water.” 
 
 The provisions of the water power act are excellent and will greatly stimu¬ 
 late the development of water powers, especially upon the public lands, such 
 as forest reserves, large areas of which exist in North Carolina. It is evident 
 that where states have adequate laws relating to the administration and con¬ 
 trol of their water resources they are eminently safeguarded from encroach¬ 
 ment by any decisions of the Federal Power Commission. But let us see what 
 happens when, as in North Carolina, no such conservations laws are in effect. 
 The act here provides “that in case of the development, transmission or distri¬ 
 bution or use in public service of power by any licensee . . . engaged in 
 
 public service within a state which has not authorized or empowered a com¬ 
 mission or other agency or agencies within said state to regulate and control 
 the service to be rendered by such licensee or by its customer . . . juris¬ 
 
 diction is hereby conferred upon the Commission ... to exercise such 
 regulation and control until such time as the state shall have provided a com¬ 
 mission or authority for such regulation and control.” 
 
 As has been stated North Carolina has no conservation or water-use law. 
 The Federal Power Commission has been appointed within the past month, 
 and is now functioning. If we do not quickly enact the necessary legislation to 
 preserve the administration of our water resources to the state, they will be 
 administered by the Federal Government. Such legislation should provide for 
 issuance of franchises under similar terms as the federal franchises to corpora¬ 
 tions or municipalities for power and water supply purposes. It should provide 
 some slight return to the state for the utilization of these privileges, and safe¬ 
 guard the rights which are inherent to the state which have been outlined 
 above. Moreover, provision should be made for preventing or regulating 
 development of North Carolina water powers for transmission of electrical 
 energy outside the state. Tennessee has requested its legislature to pass a law 
 for a similar purpose, yet in a report published last year there are specific 
 plans outlined for developing 100,000 h.p. in western North Carolina to be 
 transmitted for use in Tennessee. It might be added that the survey on which 
 this report was based was made by the Tennessee Geological Survey with funds 
 furnished by the Knoxville Chamber of Commerce. The Federal Power Com¬ 
 mission will not be interested in retaining the natural resources of a state for 
 use in that state, and the state must look to its own interests. 
 
 The foregoing should make it plain that North Carolina must immediately 
 proceed to consider a definite policy relating to the conservation, regulation, 
 and control of its water resources; enact necessary legislation, and delegate the 
 enforcement of the laws to the proper state authority. The State Geological 
 and Economic Survey is charged with the compilation of data relating to and 
 the investigation of the natural resources of the state, including water power. 
 Realizing the gravity of the present situation, it presents the following definite 
 outline of a state water resource policy, some of which it now has in opera¬ 
 tion, and some of which needs legislative action to become effective. 
 
 I. A Power Census. The compilation of data relating to the present 
 status of power development and power demand in the state. No accurate 
 figures are obtainable, the reports of the U. S. Census, the U. S. Geological 
 Survey, and other authorities differ materially. An exact knowledge of what 
 our present condition is as relates to all kinds of power needs is necessary 
 before planning any elaborate schemes for the future. The Survey will shortly 
 send out a power questionnaire to every manufacturer and municipality in the 
 
 6 
 
state that it can reach. Many of those present will receive them. It is only 
 by a complete cooperation in replying accurately to this questionnaire that we 
 ■can obtain this highly important data. 
 
 II. A Water Resources Investigation. A comprehensive survey and 
 investigation of the water resources of the state. For many years the State 
 Geological and Economic Survey, in cooperation with the United States Geo¬ 
 logical Survey has maintained gaging stations on the principal streams for 
 the purpose of accumulating discharge statistics, and has issued two bulletins 
 on water power. But it is much more detailed information which the city or 
 manufacturer proposing water power developmenes desires to know, such as 
 the location of suitable powers of various magnitude, stream flow data, dam 
 sites, storage, power that can be developed, costs, etc. Recognizing the imme¬ 
 diate need of such information, the Survey organized this spring a Water Re¬ 
 sources Division, charged with the investigation of all matters relating to 
 water supply, water power, flood regulation, drainage, and inland navigation. 
 The most immediate question studied has been the water power situation. 
 With the very limited funds available a party has been put into the field to 
 work up the water powers of Surry and Caldwell counties, and local surveys 
 have been made for individual cities and towns. To do this work piecemeal 
 with the present meagre appropriation will take several years to cover the 
 state. Immediate information is necessary, and for a state-wide survey of the 
 water resources an appropriation of $10,000 is not large. The return to the 
 state would be manifold. 
 
 III. A State System of Power Development. The Survey is now at 
 work on a general scheme for district power service by which the smaller 
 powers as they are developed may be inter-connected and tied into a larger con¬ 
 trolling system. In turn plans should be worked out with the hydro-electric 
 corporations, municipalities, and manufacturers interested, for general inter¬ 
 connection of all power developments in the state, and the operation and regu¬ 
 lation of the combined system. The larger developed powers are already inter¬ 
 connected to a considerable extent, but legislation is needed to provide for 
 inter-connection of the smaller powers and for state control and regulation. 
 
 IV. A Water Resource Law. A conservation law similar to those of 
 New York and California. Such a law would retain to the state authority over 
 her water and forest resources which will otherwise be exercised by federal 
 commissions. It would provide for state franchises, similar to those issued by 
 the federal government; and for development and operation of the water re¬ 
 sources of the state for water supply or water power or navigation purposes. 
 Regulation and control of such development would be delegated to the State 
 Geological and Economic Survey, which would scrutinize applications with 
 respect to their effect on the general power scheme outlined above, the stabil¬ 
 ity of dams, the adequacy of service, the effects on flood control, erosion and 
 navigation, and the probable market for the power generated. The matter of 
 rate regulation is already delegated to the State Corporation Commission, 
 with which the Survey would cooperate in determining fair values for taxation 
 and rates. 
 
 It is believed that this program is definite and constructive. It is presented 
 for the consideration of the State Chamber of Commerce as the body most 
 interested in power development in the state. The program is not arbitrary, 
 and the Survey will be glad of suggestions as to amendment and change. The 
 support of your organization will go far toward having it adopted with the 
 utmost expediency, and your cooperation and help is urgently desired. With it 
 we may have before another year is passed a state law providing for regula¬ 
 tion, and control of our water powers in the best interest of the industries ot‘ 
 the state, and can begin a comprehensive investigation of the power sites and 
 the collection of data on a large scale which will be invaluable to those con¬ 
 templating power developments. 
 
 7 
 

 It is popularly supposed that public boards and commissions are soulless 
 creatures, designed to perform routine work, or to provide 4-year havens of 
 refuge for political henchmen. But some state boards are peculiar. They have 
 visions; visions that are not altogether chimerical. Some of us, engineers and 
 college professors though we are, believe that we can see in the not-distant 
 future the time come when all the great resources of nature shall be harnessed 
 for the use and convenience of man and administered for the greatest benefit 
 of the people, whether that be in turning the wheels of industrial enterprise or 
 providing electric lights in the home of the humblest farmer. You, gentlemen, 
 are trained to consider affairs in terms of dollars and cents. We believe it is 
 a program of practical conservation to which we ask your cooperation and aid. 
 It has for its inception the maximum welfare of the state, and for its end the 
 creation of wealth and the provision of the beneficial attributes of modern 
 civilization for every citizen of the state. 
 
 I