Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-25
SENATEBAT1lESURE BAILEY SEES TAFT
Connecticut River Power Dam Former Senator Says He Plans
Bill to Start Fray. to Stay in Politics.
NOW A NATIONAL ISSUE WILL RETURN TO TEXAS
Right of Government to Collect An Remains Here Short Time
nual Tax Stake tie Services Friends
BURTON FAv0RS NEW SYSTEM SENATOR SANDERS PLEASED
Members Glad That
Webb,
Has Taft's Backing Succeed i'm in Upper House.
Connecticut River Power Dam
Bill to Start Fray.
NOW A NATIONAL ISSUE
Right of Government to Collect An
nual Tax at Stake.
BURTON FAvoRs NEW SYSTEM
Many Members of Congress, How
ever, Are Radically Opposed to Idea
Which Has Taft's Backing.


Which Has Taft's Backing.
A battle royal will be started in the
Senate next Tuesday afternoon. when
Senator Burton of Ohio asks the Senate
to pass bill for the construction of a
power dam across the Connecticut river
at Windsor Locks. few miles above
Hartford While the bill, in it's main
objects. is of interest to only small
section OF the state of Connecticut, it has
become q national issue. Practically
every member of Congress is already a
warm partisan as regard the merits of
the provisions of the bill. Its discussion
is likely to develop more warmth of
feeling and to be more generally particf-
pated i'm than most of the measures that
are pending before Congress at the pres
ent time.
Apparently its face a bill to grant
permission to the Connecticut River Com
pany to build a power dam across the
Connecticut river. the measure contains
vast importance and widespread effect
in dealing with the development of the
natural resources of this country. If
passed in it's present form, il will eS-
of waterways. for the relation of the
federal to the state governments as re-
CARDS control of water rights, in fact,
a new policy for the general policy of
conservation.
Chief Issue Involved.
That provision of the bill on which the
issue is drawn for the battle is to the
effect that the Secretary of War may, in
his discretion, require the grantee COM
pany to pay an annual tax or rental to
the federal government for the use of the
water fall power purposes. the amount of
the tax. IL any, to be fixed with recog-
milton of the money invested by the
grantee and the returns received by it
upon the investment.
For years dam authorization bills have
been going through Congress without any
provision for a payment to Uncle Sam
for the valuable power rights granted by
the bills Secretary of War Stimson,
however. decided some months ago that
the United States had a right to some
return for this grant, and the President
has taken his view. Congress. however.
has not yet accepted this new policy.
Secretary StmsOns views We're presented
in The Star yesterday.
Burton Leads Fight.
Because this bill is the first which
Congress has been asked to pass in which
the new principle is embodied, the atti-
tude of Congress toward the principle is
to be fought out with the Connecticut
river dam as the battle-ground. Senator
Burton is leading the fight for the es-
tablishment of the new principle. and
Senator Bankhead, with Senator Nelson
as his chief lieutenant. is leading the
opposition
In behalf of the new principle il is
urged that the federal government gives
away valuable right in granting author
ity for the construction of power dam
to a corporation. and that the corporation
ought to make a reasonable payment to
the federal government in return for the
grant. In opposition. it is argued that the
federal government only rights in
streams are to their navigability. that it
therefore has no right or control over the
surplus water that would be used for
water power purposes, and that it, fur
thermore, cannot charge or require pay
ment for the use of the surplus water
over which 1t has no right or control.
View of the Advocates.
Stating the. case for the advocates of
the principle that the federal government
has the right to make an annual rental
charge on power dams. Senator Burton
says:
1T appears to be a settled question that
the federal government may impose a
charge for the use of the surplus water,
not needed for purposes of navigation,
which may be made available incidentally
to the construction of dam by the fed
eral government for purposes of navisa-
ton.
lit would seem equally evident that the
federal government also has the right to
utilize a private agency for the con-
struction of dams In aid of navigation.
granting the use of the incidental water
power thereby created to the constructing
company in compensation and requiring
such other return as the circumstances
may warrant.
Most Dintinct Step.
The bill presented marks the most
distinct step yet taken toward this meth
od for the improvement of navigation in
combination with ydro-electric develop
ment under the control and supervision Of
the federal government. but without fed
eral expenditure. In addition to the re-
quirement that the company shall con-
struct the dam. lock. and all works ap-
purtenant thereto, without expense to
the federal government. it is also pro-
vided that the Secretary of War, as a
part of the conditions and stipulations in
the general dam act, may I'm his dis
cretion impose reasonable annual
charge or return to be paid by the said
corporation or its assigns to the United
States. the proceeds thereof to be used
for the further development of naviga-
tion in the Connecticut river and waters
connected Herewith. 1t is provided how
ever. that no charge shall be imposed
which shall be such as to deprive the
said corporation of a reasonable return
upon its actual and necessary investment
Means Regulation.
III Is believed that the authority of the
secretary OF War TO require a return to the
government in case the corporation earns
more tnan reasonable return on it's bona
hde investment will be in effect a regu-
iatlon OF the charges of the company as
well as source of revenue to the gov
efnment, because il will be one of the
most important factors TO be taken into
consideration by the public utility com
missions or Connecticut and Massachu-
setts In hxing the rates of service which
the company may charge
The opponents of the new princinIe
recognizing the right of the federal GOV
eminent to expect returns for the power
dam rights. are In favor of the ma ass,pe
of the bill for the Connecticut river da m
without the clause embOdying thar nrin.
ciple. Outlining their position tic
'mionrity" report of the Senate cornmit