The Birmingham age-herald., 1913-02-09

ances of their sympathy and offers or
active support later. whoch, however, he
couIteously declined.
Ii win be seen, therefore, that by the
provisions of the above act the state
of Alabama surrenders and conveys to
any corporation organized for the pur-
pose of developing liydro-electric power
and which either had or should acquire
the necessary sites for the construc-
tion of their dams, all the title and
interest of the state. By the general
corporation laws of Alabama these wa
ter power companies are authorized to
acquire the stocks and bonds of any
other corporation and to consolidate
before or after the completion of its
works or plant With any other cor
poration.
1T cannot be claimed, therefore, that
the state has not been extremely lib
eral in its legislation to encourage the
development of water power by hydro
electric power companies But its lh-
erality was not confined to the legis-
lation which has been mentioned but
!, the provisions of the act adopted July
%, 1907, and found in section 2o69 of
! the code, the plants. property, busi-
ness and franchises necessary for the
/ production. transformation and distri-
or firm or of any corporation organ
! zied for the purpose of developing
| hydro electric power for the use of the
public, shall be exepipt from state,
| county and municipal, property and
privilege taxation Of all description,
either under general or local laws un-
| til 10 years after the beginning of the
| construction OF any such plant The
only limitation upon this exemption is
| the provision that 1t shall not be con-
| strued to exempt the lands upon which
| the plants are erected. For 10 years
| therefore, from the commencement OF
construction of such plants they are
absolutely exempt from states. county
or municipal property and privilege
taxation.
These companies are fully author
| lied to acquire the property of any
other corporation. If such other prop
| erty of other corporations are acquired
for the distribution of electric current
some lawyers contend that by the ex-
press provisions OF law. such acquired
property would pc exempt from tax
ation If such construction is sound, all
property which these hydro electric
companies may acquire for the distri-
button of their current would be re-
lieved Of state taxation and the Far
| reaching effect on the revenues of the
state is very evident. 1t is clear, how
ever. that under the laws as they now
| exist, the state of Alabama would be
without power to exact one cent of toll
or royalty for the use of any water
power that may be developed by any
hydro-electric power company. 1t is
therefore. evident that the comparison
between the two states was unfortu-
nate.
"The policy of the two states oi
New York and Alabama have been en-
lfa hos c1ffst and f1af.
and the other has retained its control
over water power sites. There is nc
doubt that under the law, originally
every state which was admitted into
the union, without specific reservations
by the federal government Of power
sites, upon its admission acquired ful
sovereignty, juris 1iction and control o
such sites.
but whatever may have been its origi
nal power over the control of waterpowel
sites all its authority to exact revenue
for the development of hydro-electrie Sow-
er has now been surrendered by the STATE
by express legislative enactments. New
York is one OF the states which has en-
acted laws regulating and controlling tbs
use of waterpower sites for the produc
tion of electricity, and fixing the rate,
OF compensation for which such electriei
ty can be sold or distributed, and tht
term of years for which such franchise.
might be exercised.
1T occurs, therefore, to me that th'
writer of the article should have in
formed himself of the facts, or before
indulging in unfair criticism, should a
least have assumed that the governor
of a state whose election alone is a GER
tiiicate of confidence from majority o.
its people. was neither ignorant Of hii
! duties or disloyal to his trust.
I'm very recent work on water power
il is said that it is beyond the power oi
the state to appropriate to itself the ri
parian or other rights in waters for thu
| sole purpose of creating a water power
to be leased for manufacturing purposes
Even under its right of eminent domain
as said by the supreme court of the Uni
ted States, This would be case of tax
ing the property of one man for the
benefit of another which Is not CON
stitutional exercise of the right of emf
nent domain. However. We have seer
that the state may take the waters OF
a stream to aid in navigation and wher
so taken should power be created as an
incident to the Improvement Of naviga-
/ ton, It need not be permitted to go &c
waste. but it may be sold or leased By
the state. Kinney on Irrigation and Wa
ter Rights. Vol !, page 556 Cases cited.
THE state. therefore. could not appro.
pirate the riparian rights but. could ac
quire them by purchase or condemnation
| Under this authority the state could, II
the exercise of its power to improve nav
iigation. sell or lease the power which
/ was created. When Alabama was ad
omitted to the union it had full and com
plete control under its police power. tt