Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-30
STATE TO LEVY TAXI
Amendment to Power Dam Bill
Considered Compromise.
Ito PACIFY BOTH SIDES
Governments Rights Upheld, But
States to Supervise and License
Power Companies.

The fight pending in the Senate over the
recognition of a new principle in dealing
with the granting of power rights in
navigable streams, and in general with
the policy of conservation, ts expected tC
be taken up within the next few days
Last Tuesday. which was to be devoted
to the controversy, was taken up with
the executive session. at which the re-
publcans Iegan their militant fight fol
the confirmation of President Tafts ap.
pointments. which has postponed the de-
termination of the issue.
What is regarded as a suggestion fol
a compromise was presented by Senator
Jones of Washington yesterday afternoon
in the form of an amendment to the bill
authorizing the construction Of dam
across the Connecticut river at Windsor
Locks. The bill contains a provision
recognizing the right of the Secretary OF
War to impose an annual tax on the
product of the power dam. and is the
first measure of the kind approved by a
committee of Congress which recognizes
this principle of federal taxation on power
dams across navigable streams
Advocates of this principle have main
tanned that in return for the valuable
grant of the right to construct the power
dam the federal government should re-
ceve return in the form of an annual
tax. The opponents of the principle de-
clare that only the state in which the
power dam is to be located has the right
to impose the tax as the water used for
power purposes is not for navigation.
State to Tax.
Now comes Senator Jones with a promo
sition that the federal government shall
not give authority to construct the power
dam until the state has arranged to i'm
pose tax on the product. This meets
the argument of one camp that the grant
Of valuable rights should he paid for by
an annual tax or rental, and yet acknowl-
edges the position OF the other camp that
the state only and not the federal gov
ernmen has the right to impose the tax
and get the benefit of the revenue.
The Jones Amendment.
Senator Jones proposes to strike out of
the bill the clause giving the Secretary
of War the right to impose an annual
tax, which would be federal tax, and to
insert the following provision:
The assent of Congress for the con-
struction of the dam herein given shall
not be complete and operative until there
shall be filed with the Secretary of War
an agreement signed by the said Con-
necticut River Company (grantee) and the
proper authorities of the state of Con-
necticut. in which is recognized and ac-
knowledged the full authority OF the state
of Connecticut to supervise. regulate and
control the rates to be charged by said
company. its successors and assigns, for
the energy developed and the right of
said state from time to time to readiust
such rates and the right Of said state to
supervise, regulate and control said cor
poration. it's successors or assigns. its
management, stocks. bonds or evidences
of Indebtedness in such manner as NAV
be provided from time to time by the
laws of said state. and the right of said
state to exact from said corporation, it's
successors or assigns, such annual charges
as NAV be just and reasonable taking
into account the amount spent and re-
uuired to be spent by said corporation
in improving the navigation of said river
and the right of said corporation to rea-
sonable return on the fair value of such
dam and appurtenances. works and prop
erty. allowing for the cost of construction,
maintenance and renewal