.

The only way in which the public can get back to itself the margin of natural advantage in the water-power site is to rent that site at a rental which, added to the cost of power production there, will make the total cost of water power about the same as fuel power, and then let the two sell at the same price, i.e., the price of fuel power." Of the fight of the water-power men for States Rights at the St.Paul Conservation Congress in September, 1909, Commissioner Smith says: "It was the first open sign of the shift of the special interests to the Democratic party for a logical political reason, namely, because of the availability of the States Rights idea for the purposes of the large corporations.

It marked openly the turn of the tide." Mr.Smith brought to the attention of the Inland Waterways Commission the overshadowing importance to waterways of their relation with railroad lines, the fact that the bulk of the traffic is long distance traffic, that it cannot pass over the whole distance by water, while it can go anywhere by rail, and that therefore the power of the rail lines to pro-rate or not to pro-rate, with water lines really determines the practical value of a river channel.

The controlling value of terminals and the fact that out of fifty of our leading ports, over half the active water frontage in twenty-one ports was controlled by the railroads, was also brought to the Commission's attention, and reports of great value were prepared both for the Inland Waterways Commission and for the National Conservation Commission.

In addition to developing the basic facts about the available timber supply, about waterways, water power, and iron ore, Mr.Smith helped to develop and drive into the public conscience the idea that the people ought to retain title to our natural resources and handle them by the leasing system.
The things accomplished that have been enumerated above were of immediate consequence to the economic well-being of our people.