Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-09-05
NET INVESTMENT
CLAUSE STAYS IN
THE POWER BILL

rav sosmse ,oo-s.l .sse,.t ls.sso war

Washington, Sept. 4,--The house to-
day rejected President Wilson's sug-
gestion that the recapture clause of
the administration water power bin
be amended TO eliminate the provi-
sion for paying the net Investment in
the event that power projects are tax
en- under federal, state or municipal
control at the end of the lease periods.
The recommendation Of the water
power committee was retained the
house defeating, 96 to II, proposal
by Representative Ferris of oklahoma,
that fair value" be substituted for
met investment as urged by the
president.
representatives of power interests
had asked for the retention of the
net investment provision, contending
that under the presidents proposal
power promoters could not obtain
capital
Immediately after the vote, Mr. Fer
ris offered a substitute covering vir-
tually the same ground but making
the provision somewhat broader. It
was rejected,
Chairman Sims said no attempt
could he made to vote again ON the
amendment in the house, and indi-
cations were that the measure would
he passed tomorrow with the net in
vestment retained. It was said an at
tempt would be made to reach a com
promise in the senate.
President is Criticised.
Chairman Sims and Mr. Ferris, in
urging the adoption of the fair val
uation clause, based their argument
on the ground that the net investment
feature would make recapture so on
erous that private interests would
have a perpetual franchise Mr.. Ferris
said the latter plan excluded the right
of public ownership.
In the debate today Representative
Sinnot Of Oregon criticised what
he termed presidential interference
with legislation. In all war legisa-
tion, he said, he had supported the
president and in other matters had
given careful and respectful consid-
GRAFTON to whatever he had said to
the house.
Without assigning any reason ex-
cept an erroneous one" he said, the
president asks as to abandon the
work of the power committee and in
sert the fair valuation clause. This is
a subject on which the president could
not have had complete information
unless he had spent many months of
Investigation.
When his ntterances bear evidence
of the presidents mature and thought
full consideration, they are persuasive
and should not be disregarded, evxcept
fdr the most cogent reasons But
when they bear upon their face pos
tive evidence that they are not the
result Of mature and deliberate con-
sideration they should be disregarded
accordingly.
"As an illustration of his intemper-
perate utterances we have too proud
to fight the republican party has not
had an advanced thought in twenty
years and Senator Chamberlain is
guilty OF distorting the facts.
In considering the wgter power
measure. Mr.. Sinnot said the president
was not In possession Of the exact
facts"
Representative Macarthur of Oregon
said he would oppose all attempts to
insert 0 government ownership clause
in the bill. declaring there already is
too much government ownership.
The House went on record today as
favoring the fifty-gear lease period
with the governor or any municipal
ity having the right to take over pow
er projects at the expiration OF leas-
ing period upon payment of the net in
vestment An amendment by Repre-.
sentative Doremus of Michigan giving
the government the right to take over
the projects at any time was voted
down.