The Birmingham age-herald., 1913-01-29
Connecticut Case Sets Pre-
cedent for All Projects
in the Country
BANKHEAD LEADER
AGAINST BURTON
Alabamian Contends That Federal
Government Has No Authority to
Levy Tax on Water Powers
Within the States
ny c. Il. STEWART

Washington, January S-tSpecial ~
national but strictly non-partisan Issue
in which the state of Alabama Is inn
mensely interested will be fought out IN
the Senate PROBABLY during the present
week, or at any rate during the present
session.
It was inaugurated when Senator Bur
ton asked the Senate to pass bill for
the construction OF dam across the
Connecticut river at Windsor locks a few
miles above Hartford While this bill in
itself is of interest to only a small sec
tion of the state of Connecticut, it as
sumes the dignity OF national question
by reason of the fact that the issue is
made that the government has no right to
levy a tax upon water power companies.
as provided in this BILL but that thsr
function and the right of regulation be-
lcng to the state alone.
Will Set Important Precedent
! II the bill is passed in It's present foi4n.
I Ii will set a precedent of vast importance
and widespread effect in dealing with tie
development of water powers aud the mt
ural resources of the country. 1t will g.
tablish a new policy for the relation os
the federal 10 the state governments as
regards control and regulation of water
rights. 1t is the offspring of the National
Conservation association, of which Clifford
Pinchot is the president.
| The provision OF the bill on which tie
issue is drawn FOR the battle is to the
effect that the Secretary of War may.
in his discretion, require the grantee
company to pay an annual tax rental
to the federal government for the use OF
the water for power purposes, tha
amount of the TAX, IL any, to be fixed with
recognition of the money invested by the
grantee and The returns received by il
upon the investment.
| Because this onl Is the first which Com
gress has been asked to pass in which the
new principle is embodied, the attitude
of Congress toward the principle is to ife
as the battle-ground.
Burton Favors New Principle
Senator Burton Is leading the night fer
the establishment Of the new principle,
and Senator Bankhead. with Senator Mel
son as his chief lieutenant, is leading u
formidable opposition. Stating the cdse
for the advocates of the principle ~
volved, SenatorSHurton says:
1T appears 10 Q settled question that
the federal government may impose a
charge for the use OF the surplus water,
not needed for the purposes of navigation.
which may be available incidentally to the
construction of a dam by the federal gov
ernment for puT s)oses of navigation.
evident
federal government also has the right to
utilize private agency for the eonstrtie-
tion of dams In aid of navigation. grant
| Ing the use of the incidental water power
thereby created TO the constructing conf
pany in compensation and requiring such
other return as tie circumstances may
warrant
Has Changed Attitude
From this 1t will appear that Senator
Burton has auise suddenly become very
progressive" His position, whether
correct one or otherwise, on The present
| bill Is quite in contrast with his utter
ances in the final report of the National
waterways commission, of which he was
chairman made 20 the Sixty-seeond Con-
gress. In that report the commission
| says
.srhe commission is of the opinion that
the federal government has no propre-
tary right or interest in navigabe waters
! which would authorize the collection of
tolls" The comrnission at this point in
the report refers to several theories all
Vanced why sucn authority Is vested in
the federal government, and says:
LAS regards the second theory, 1t should
be said that the imposition of tolls, unless
based upon more substantial foundation
than the mere authority to grant or with
hold consent-an authority arising solely
from the control of the federal goveri.-
ment for the purpose of navigation-does
not commend itself to the commission and
| It Is to be doubted whether. even in case
a bill should be passed or other actiln
taken by Congress for granting this per-
mission with 81 provision for charging
tolls. such tools could be collected
| Further ON the commission adds;