Every evening, Wilmington daily commercial., 1918-03-02
WATERPOWER BILL
IS TO Be AMENDED
Cabinet Officers Urge Speedy
Passage to Stabilize the
Industry.
by Associated Press to Every Evening
WASHINGTON. MARCH Z

WASHINGTON, IARcH 2.
Changes IN the pending admlnLstra-
tion waterpower bill to more clearly
express the intent Of the legislation were
recommended today 10 Chairman Sims
If the House special waterpower com
mittec, by Secretaries Baker Lane and
Houston, who drew the measure. They
urged speedy passage of the bill 81 az N
stabilize the power industry generally and
encourage the building Of extensions TO
existing projects
"Waterp0wer legislation" said the let
ter from secretaries, should have in
view not only the maintenance of the
rights of the public IN the national re-
sources, but also the adequate protection
Of private capital bv which such resources
are developed The bill before you seems
to do both. After careful consideration,
however, il IL believed that certain changes
in language could be made which would
more clearly express the intent of the
proposed legislation.
1T Is particularly important that the
conditions which affect the disposition
Of the property at the termination Of the
license should be 50 definite that uncer-
taintles will be reduced 20 minimum
If the properties arc not taken over, the
conditions under which a new license
may be secured should he entirely clear.
II the properties are taken over the
price to be paid should not include alleged
values not represented by investment or,
on the other hand require needless amor
tizatlon Of capital during the period of
the license in order 10 protect the invest
ment. 1t is therefore believed advisable
to define in specific language the items
which should or should not enter INTO
the price to be paid.
NET INVESTMENT.
The letter then suggests Incorporation
in the bill of this definition Of net invest
ment, prepared after thorough considera-
ton and after consultation with account
ing and banking experts
Net investment IN u project means
the actual legitimate original cost thereof
a. defined and interpreted in the cl2s-
sificatIon Of investment IN road and equip
nent Of steam roads, issue Of 1914. Inter
state Commerce Commission, plus sim
liar costs OF additions thereto and better
ments thereof, minus the sum Of the fol-
lowing items properly allocated thereto,
i and TO the extent that such items have
been accumulated during the period of
the license from earnings IN excess OF q
faIr return Ou such investment. "a n
appropriated surplus, b., aggregate credit
balances ot current accounts,
and (cl, aggregate appropriations of
surplus or income held IN amortization.
sinking fund or similar reserves, or
expended Tor extensions or betterments.
The term cost shall include, insofar as
applicable. the elements thereof pre-
scrlbed IL SAID classification, but shall not
include expenditures from funds obtained
through donations by States. munioi-
palltieS, individuals or others
development OF watcrpo"er Is urgently
needed, the secretaries wrote, if the
United states IS 10 maintain its proper
place in world trade after the war, or
even 10 supply rs domestic needs. 1t
also Is necessary III order to reduce the
drain on the nation 5 coal and petroleum
supplies. particularly the latter
The industrial expansion which has
been necessary in order to produce he
materials and equipment needed in the
prosecution of the war, the letter con
tinued, has placed unprecedented de
lnands upon the electric power industry,
TO such an extent ia fact that the output
of commercial CENTRAL stations has in
creased more than 90 per cent since 1914.
This increase has been greatest IN the
manufacturing sections OF the east where
waterpower development is comparativelN
limited and has taken place
notwithstanding aasances in costs of
construction and Of operation
While the form Of the bill which
has been presented for your consideration
is directly concerned with waterpOwer de-
vclopment only, an adequate solution Of
this problem will have favorable and
stabll5ing effect upon the whole power
industry Probably no considerable in
crease in new waterpower development
can be expected immediately, but legisla-
ton is urgently needed in order to put
existing waterpoWer developments, which
have been made under inadequate law
into position Of security which will
enable them to make extensions and to
meet maturing obligations upon favor
able terms