Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1910-02-11
POSITION OF MINORITY OF SPECIAL
LEGISLATIVE COMMIT
TEE.
FORMER USAGE TORN TO SHREDS
Minority Is for the State Assuming
Right to Complete Con-
troll!
PROBLEM OF INTEREST TO PEOPLE

ering the proposed legislation relating to
water powers and the giving Of fran
chises for the erection and maintenance
of dams across the rivers of Wisconsin,
the recommendation made by Senators
Husting and krumrey, us Il minority of
the special committee are of interest. In
the bills accompanying their report the
attempt is made to establish the doctrine
Of state ownership of the energy OF the
water i'll Wisconsin streams and lakes
and to nuiIfy the existing declared pol
ICY OF the rights OF riparian owners. In
order that the public may judge of the
intent and purpose OF the plans OF the
minority of the committee, the report Is
herewith reviewed.
The first purpose is to declare all
streams. whether meandered or not,
naVlgable streams, which are naylgabe
i'll fact for any purpose, including those
naVlgable for logs and roWboats. This is
done to fix the policy of the state in UNI
mistakable terms. The second PROPOSE
ton declares that the use of water in
| nayigable streams and lakes for power
developed under Il franchise from the
state Is It public use; and all of the en-
ergy developed or undeyeloped of the
water Ill the nayigable streams of the
State is subject to the control of the state
for the greatest public good" The report
the creation and use of the power.
Confscation's Cloven Hoof.
The state should declare that the
beneficial use and natural energy of the
water of the navigable streams and lakes
OF this state for all public uses belong
to the state i'll trust for all the peo-
pie" This is declaration of the right
Of the state rs against the right of ripa-
rian owners. The committee further
proposes to make the acceptance of any
franchise contract between the state
and the grantee. and thus enable the
state to manage, control and regulate the
| erection of dams and the development
of water powers upon such terms as it
may require.
One of the most important propositions
| submitted by the minority of the COM
mittee is to be found in the following:
! NO franchise should ever be granted
| i'll perpetuity but should be for def
mite period only. Such period should be
no longer than is required for reasonable
| safety of Investment" In explanation
| of this recommendation, the committee
says: I'VE recommend that no fran
| chse be granted for q longer term than
| twenty years with the privilege of CON
| tinuance for two further and successive
terms OF ten years each. at the option
| of the grantee. The state should reserve
the right to readjust tat stated periods
| the compensation to the public. The
| purpose of this provision is to give a
| Sufciently long period of enjoyment to
| the investor under unchanging terms and
| conditions so that the same will attract
and Justify investment i'll the develop
.ment of power and industrial enterprise
CONNECTED Herewith. The period stated
we believe will give every investor prac-
tically a life time in which to get re-
turns on his investment and on the other
hand will leave to future Legislatures
the right to lpgiSlate to meet the cOndi-
tons then existing
Franchises to Revert.
|; Having, to their mind, established the
doctrine that the state owns the energy
of the water, Senators HuSting and
krumrey recommend that reasonabl
franchise fee should be imposed, because
| 1t gives Il special privilege to the holder.
One of the recommendations made as
well as provisions in the bill of interest
to prospective investors in Wisconsin wa
| ter power properties and industrial aux
/ iliaries, is to be found in the following
AT the expiration or forfeiture of fran,
chise, all rights exclusive of physical
property should revert to and become the
property of the state i'll trust for all the
people. that at the expiration or forfeit
| ure Of the franchise, the water power
| privilege may be reappropriated with
right of condemnation and sale of all
| physical property not removed by the
| Old appropriation
|, The legal effect Of these recommends
| tons, should they receive the sanction of
| law and be upheld by the courts, would
| be to unSettle any existing doctrine under
which riparian owners now operate. 1t
| is a departure from policies continuing in
/ Wisconsin since permit or franchise
| for dam was first granted and an alb
i sOlute attempt through legislation to es-
| tablish socialism as it not only applies
I TO the cOntiscatOry rights of the state, but
I in the fact of state ownership and the
/ operation of industries.
Minority's Theory of Sovereignty.
Senator's Husting and Krumrey base
| their plan upon the theory that because
the applicant for dam franchise on
navigable streams is compelled to go to
| the Legislature for a permit or fran
chise the state and not the riparian
owners. is the actual posSessor and hold
er of rights, without limitation. The
doctrine sought to be established is taken
relating to the sovereignty of the crown
and in part. finds an application under
/ the Canadian laws relating to crown
lands In. practically all franchises
granted by the Wisconsin Legislature,
the right to amend or repeal is reserved
and in many instances, other limitations
are imposed This it is assumed under
the plan proposed, gives the state I'M
limited powers to prescribe all the ele-
ments of ownership and control over
any water power existing in Wisconsin
heretofore exercised by individual owners
land not included in the rights of the
public as they relate to navigation or
fisheries.