New-York tribune., 1921-03-12
Governor Asks
Aid to Develop
w ater Power
Special Message Outlines
Plan for Use Of Private
Capital TO Take Up Work
and Sell to the Public
Favors Licensing L Act
Would Create Commission,
but Service Board Would
Have Control of Rates
From, a StnU Corrcspoudert

ALBANY, March Maximum de-
velopment Of the states water power
resources by private capital, but with
ample provisions for safeguarding the
public's interests, is the policy pre-
sented by Governor Miller in q spc-
cial message dealing with tho water
power situation and submitted to the
Legislature to-day.
Legislation along the plan outlined
by the Governor would provide for the
creation of state water power COM
mission to consist Of the Attorney
General, State Engineer and Conscr-
vation Commissioner. This commits
sion, however, would not be given regu-
latory powers as to rates and service,
which the Governor would have vest
cd with the State Public Service Com
mission, together with supervision over
the capitalization of hydro electric
companies.
Governor Miller believes that the
public would be best served if water
power development is undertaken by
door should be left open for state de-
velopment in the event that capital
should not be disposed to enter the
field. Ilc does not believe that the
complications which have arisen out
Of the dispute between the state and
Federal governments over boundary
water control should permit delay in
the harncssing of the more than t.
al bCr aou
ing to waste on interior streams AS to
the Federal governments claim to cou-
troll over boundary waters, the Govern
or declares that, in his opinion, the
Esch water power act is unconstitu-
tional.
Steps Taken to Test Law
Steps already have been taken by the
Attorney General to test the validity
of this law. Although Governor Miller
looks upon the Esch act as an infringe
ment upor the sovereign rights of the
state, he believes that state legislation
for water power development should
follow along the lines of the Federal
act, which, he says, appears to be
carefully drawn to prevent the cxploita-
tion of public resources for private
gain He would prohibit the diversion
and use OF state waters without a per-
mlI Win Cne exception OF such diver
slons as are now actually and lawfully
made.
In addition, the Governor recon-
mends that the condemnation law be
amended so as to facilitate the taking
over of lands necessary to bring the
water power development project to q
elimination.
The general benefit from water
power Development says the Gov
ernor, will be by taxation and cheaper
cost of power. Under any proper
system of safeguards. the ultimate con-
sumer will bear whatever taxes are i'm
posed, and 1T does not appear to me to
be wise policy for the state to seek
to make the proposed DEVELOPMENT
revenue producing beyond reasonable
recompensc for the use of state land
or property and reasonable charge for
the cost Of administration. From the
standpoint of revenue alone the state
is likely to gain most from a policy
which will stimulate it's industrial
development. OF course, l am speaking
of development of power for distribu-
ton to the public, not of private de-
velopment for private use
~ therefore recommend the PASSAGE
of licensing act along the general
lines of the Federal act, with careful
provisions to safeguard the public in
terests as hereinafter indicated.
Commission to Have Discretion
"In order to assure maximum de-
velopment the act should confer dis
cretion on the Water Power Commits