New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-14
TO COMPENSATE STATE
NEW LONG SAULT BILL.
Suggestions by Governor Incorpo-
rated an Imcnded Measure.
rBy Telegraph to The Tribune. J

Albany MAY l3-Because of Governor
Hughes's determined stand against the giving
away of water power rights, the O'Neil Long
Ssult charter bill. which he caused Senator
O'Nen TO withdraw, was reintroduced tonight
with adequate provisions for payment TO the
state for ali power developed. This is the first
sime that the state government has taken steps
toward getting for the state some part Of The
reward resulting from the development of valu-
able water powers. In considering this bill
Governor Hughes had advice from competent
engineers, and after talking with them suggested
changes along the line of those incorporated by
Senator O'Nef.
This measure incorporated the Long Sault De-
velopment Company. and gave il rights TO land
under water and water powers from the ST Law
renee at Long Sauit Island, together with various
other valuable privileges, such toll bridge
across the river and the right 10 transmit and
sell power generated.
Governor Hughes takes the position that the
time has come when grants of land under water.
water rights or other privileges by the state 10
private corporations should be accompanied with
q proposition by which the state shall receive a
compensation for the benefits surrendered. Here
tofore it has been the practice in this and other
states TO grant these privileges with the view
that the establishment Of the industry and the
developments Of the localities interested. fol-
lowed by assessments of property for state and
local Purposes, were a sufficient consideration TO
the public for the grant Of such privileges.
In accordance with these views. Senator
-ONeil and others interested. endeavored to
meet the situation by providing in the amended
bill for a method Of compensation by annual
payment Of a sum fairly representing the
mercia value of the for the states interest.
The amendment a to compensation provides
that during the first year of its existence the
company shall pay $4,000, the second year
$4,000 and the third year $4,000, by which
time it is expected that the company will be in
operation After that the company IS to pay
the state at the rate of - cents horsepower for
the first 25.000-hOrsepower developed, 30 cents
for the next 1J0e0-horsepower developed and
- cents for ali over 0O-horsepower.
but a minimum of $4,000 must be paid
TO the state. The State Engineer shall have
thority To prescribe the kind Of books and
records 10 be kept by the company, and If the
company is sixty days overdue in its payments
its rights and privileges are to be forfeited.
That this may not be a sleeping charter
provision is added that rights and privileges
shall he forfeited if the company does not be-
gin construction within one year after having
obtained permission from Congress, and fur
Ther amendment that if all the land and water
rights are rot used they to be reclaimed.
In view of the fact that the Governor has
insisted that the principle of compensa-
ton to the state be placed in this charter. 1t
seems probable that bills amending the charters
of other power companies or extending their
time, as that amending the charter Of the
Genesee River Company. must have added to
them similar provision requiring that those
companies pay the state for the privileges OBJ
tanned.