The Owosso times. (Owosso, Mich.) 1897-1926, 1918-09-27
Washington Letter.

Washington, September 24.-(Spe-
cial correspondence).- 1t is coming to
be realized by many members of Con-
gress that the pending water power
bill is likely to prove quite as abor-
tive in the accomplishment of the OBJ
ject aimed at as the numerous meas
ures of similar nature that have
preceded it. In their zeal to protect
the interests of the United States the
Democratic trainers of the legislation
Eextend practically no hope of ade-
quate reward to private interests for
the investment of their money and
initiative. In this the President Is
more to blame than any other indivi-
dual, for to him has been referred the
measure for approval at all stages of
its consideration. Every feature that
he recommended has been written into
the bill, and every paragraph that met
with his disapproval has been prompt
ly eliminated:
(1) No power dams can be built UNI
til after application, investigation, and
license from the Federal Power Com
mission. (2) plans for dams affect
ing navigable rivers must receive the
approval pfs the Chief of Engineers of
the ARMY, % IfAsuch ~ dam could
be advantageously used by the gov
eminent, license is not to issue until
two years after report of the facts
have been made to Congress. (4)
After a license has been issued the
ljcensee must submit his books and
accounts to examination at any time;
must render such reports as the COM
mission may require at any time; and
must adopt the system of accounts
prescribed by the commission. (5)
Licenses shall not be transferred with
out the approval of the commission
(6) Licensees must pay annual
charges to the United States in an
amount to be fixed by the commits.
sion.
| EAnd, most important of all, there is
the so-called recapture clause by
which the United States may take
over any project upon the termina.
ton of the license, or sooner if the
President deems the safety of the
United States demands it.
Taken as a whole the measure is
so hedged about with restrictions that
it will be practically impossible tc
interest capital in power projects. The
bill really places a penalty on sue.
cessful private enterprise, and con.
templates government ownership as
soon as a water project has proved
its feasibility under private manage.
ment. In a word the public assumes
the risk and the Government seizes
the profit.
The Fortifcations Appropriation
Act of last July contained appropria-
tons and authorizations amounting
approximately, to five and half bill
lion dollars. At the end of the act
Congress made faint attempt to re-
strict the huge expenditures that they
had authorized by providing that no
part Of the sums should be spent for
the purchase from private manufac-
turers OF material at a price in excess
| ~ 50 Pei NChe CHdII III COulu Dt
manufactured by the Government. If
the material was not being manufac-
tured by the Government then the es-
timated cost at which it could be so
manufactured was to be the governing
figure. If the paragraph had ended
with that language there would have
been some sort of restriction on the
expenditures. But Congress went fur
Their and authorized the President to
suspend the restrictions if he saw fit
to do so. Under an Executive order
dated August 10Th the President has
exercised the power conferred upon
him and waived all the limitations
placed in the act by Congress. 1t is
hoped that the five and half billions
will not go the way of the $640, 900 900
appropriated for aircroft, but those
who are charged with the disburse-
ment of the money have an entirely
free hand in the matter.
| Claude Kitchin, chairman of the
Congressional Ways and Means Com
mittee, is reported as saying, when
presenting the new revenue measure
to the House that itcwould be futile
to, try to obtain more revenue from
the tariff, for the reason that imports
have been decreasing steadily since