Imperial Valley press., 1918-03-13
LEROY HOLT DETAILS
LAGUNA POWER PLANS
CONTINUED from Page One)

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.iathews of Los Angeles, who is here
no he says this will in no way at
ct our legal rights; that he has ne
oubt but what the courts will give
5 a prior right to the Yuma people
/ believe we have convinced Mr.. Da.
/ is, Mr.. Bradley. Mr.. Finnev and Mr.
altman that this proposition is fan
nd that they will recommend to the
ecretary of the Interior that the con-
act be drawn in this way.
We feel that we have gained VIC
tory in regard to these wadef rights
as many Of the Valley people wish
to concede the Yuma project a prior
light, and this was used against us
by Mr.. Davis, who stated before the
committee that it was his orin.?r
Jhat nine-tenths of the people Ct the
Valley were willing to accept the con-
! .ract conceding Yuma first right
However, l have made up my mind
that if this was inserted in the con-
tract it would be against my protest,
and would leave it up to the Valley
10 approve the contract in that form
81 have taken the position n re-
card to the power possibilities on the
canal, that the Imperial Irrigation
District desired to pay the entire cost
of power developments and receive all
Of the benefits, and that if tre Yuma
project needed power for its develop
'1ent that we would be willing to sell
lem what power they needed at a
rice of cost plus 10 per cenr, and in
atermining the cost, the interest at
per cent should be computed upon
III power plant equipment and trans
?ission lines, and that there should
so be included the interest upon ca
al and headworks enlargement at the
alto of 1000 second-feet bears to the
anal enlargement. Each member rf
ne Department has taken the posi-
on that they would not approve any
ontract that did not protect Yuma's
interest for power.
'Mr. Davis has taken a firm stand
tnat the power should be developed
jointly and that he would nor. approve
9 bill authorizing Congress to appro-
pirate money to build power plants for
the Imperial Irrigation District FOR
the purpose of selling power at
profit. l do not think his position
has been fair on this matter. We have
1rafted and re-drafted this power
clause. but l have maintained that the
only one acceptable to the people
would be, as stated above, and that
any contract not giving them the full
right to develop and control the power
would not be acceptable to me.
"However, we have drafted a para
graph which, if we can get it through,
l would not oppose, providing the peo-
pie of the Valley wished to accept it.
This paragraph provides that Yuma
shall pay for 1000 feet canal capacity
and the same proportion of headworks
and that they shall pay
for power plant equipment in the ra-
ton that $500 horsepower bears to
the total horsepower developed, and
that power for the Yuma project and
the Imperial Irrigation District should
be furnished at the same price, which
would be cost plus 10 per cent, and
per cent interest upon 2000-foot canal
and headwork enlargement and power
machinery and transmission lines in
stalled, with reasonable cost of op-
Grafton and depreciation.>
an this way we would participate
in the profits that the Yuma project
would pay for its power, and all ex-
Aess power in addition to what the
TUNA project and the Imperial Irri-
cation District should Use should be
classed as commercial power and sold
fo rthe joint benefit of the two con-
Germs in proportion to investments, and
that in case of an all-American canal
all power developed west of the sand
hills should be the power of the I'M
perial Irrigation District, after we
had transmitted back to Pilot Knob
an amount of power which, taken
with that developed at Pilot Knob
would be sufficient for the Yuma pro.
ject. II y a@rt4s
81 do not believe we would ever have
to transmit any power back to Pilot
Knob, even if an all-American cana
should be built, for the reason tha
there would always be water enough
passing through the plant at Pilo
Knob to develop enough power for tn
Yuma project.
"Mr. Grunsky thinks that it woul'
be years before the Yuma projec