The Bridgeport times and evening farmer., 1918-03-02

Washington, March 2.-ChangeS m the pending administration water power bill to more clearly express the intent of the legislation were recom- mended today to Chairman Sims of the house special water power com mittee by Secretaries Baker, Lane and Houston, who drew the measure. They urged speedy passage of the bill so as to stabilize the power industry gener- ally and encourage the building of ex- tensions to existing projects.
 Water power legislation" said the letter to the secretaries, should have in view not only the maintenance of the rights of the public in the national resources, but also the adequate pro- lection of private capital by Wnlch such resources are developed. The bill before you seems to do both. All ter careful consideration, however, 1T is believed that certain changes m language could be made which WouiI more clearly express the intent or the proposed legislation.
 sIt is particularly important that the conditions which affect the dlspo- sition of the property at the terminal ton of the license should be so deh- mite that uncertainties will be reduced to a minimum. If the properties are not taken over the conditions under which a new license may be obtained should be entirely clear. If the prop critics 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 tization of capital during the period of the license in order to protect the investment. It is therefore believed advisable to define in specific language the items which should or should not enter the price to be paid"
 The letter then suggests incorpora- tion in the bill of this definition Of net investment, prepared after thorough consideration and after consultation with accounting and banking experts:
 "'Net investment in a project
 means the actual legitimate original cost thereof as defined and inter preted in the classification of invest nent in road and equipment of steam roads, issue of 1914, Interstate Com merce Commission plus similar costs of additions thereto and betterments thereof, minus the sum of the follow | ing items properly located thereto, ii and to the extent that such items have been accumulated during the period of the license from earnings in excess of a, fair return on such investment: (a) Tnappropriated surplus, (b) aggregate credit balances of current depreciation accounts, and (c) aggregate appropri- ations of surplus or income held in l -sr ,1xS,, cir Il reserves, or expended for extensions or
 betterments. The term cost shall in
 clude, insofar as applicable, the ele- ments thereof prescribed in said clas- sification, but shall not include expen- i dftures from funds obtained through
 donations by states, municipalities, in- | dividuals Or others"
 | Development of water power is
 urgently needed the secretaries wrote,
 if the United States is to retain it's
 proper place in world trade after the
 war, or even to supply it's domestic
 needs. It also is necessary in order to reduce the drain on the nations
 coal and petroleum supplies, particu-
 larly the latter.
 "The industrial expansion which
 has been necessary in order to pro-
 duce the materials and equipment
 needed in the prosecution of the war"
 the letter continued, "has placed un- precedented demands on the electric power industry, to such an extent in fact that the output of commercial
 central stations has increased more than 50 per cent. since 1914. This in-
 crease has been greatest in the manu- featuring sections of the east, where
 water power development is compara- lively limited X and has taken place notwithstanding advances in costs of construction and of operation l While the form of the bill which has been presented for your censidera- tion is directly concerned with water power development only, an adequate solution of this problem will have Q favorable and stabi1izing effect upon the whole power industry. Probably inc considerable increase in new water Apower development can be expected