Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-03-25

be hurt by such a law.
| I'VE have a few advantages in Maine
and many handicaps."- said Judge
Cleaves, land any tax which will in
crease the cost of operation must be
paid by the consumer. I do not want
the Legislature to build wall around
our State. In some places village
| has been built around an industry.
Does anyone want to close down these
industries and a tax on waterpower
might close Them
| DO you think that the State should
tax these waterpowers that you speak
of to the extent Of $1,000, 000?" asked
Mr.. Cummings.
II should hope not" replied Judge
CIeaves.
Judge Cleaves then outlined to the
committee his idea of what might be
done for the development of the wa
ter powers of Maine in somewhat
more elaboration than he has pre-
| viously done in his public utterances.
j This was that the State by a bond
issue. authorized by constitutional
amendment, might finance a private
~ owned and operated company
ana supply all users--small power
companies-thereby greatly reducing
the overhead cost and making every
dollar of investment work, instead
OF having some remainidle, as must
be the case under existing condi-
tons. The State he said could fin
ance this much more cheaply than
could private concern. He would
nave this money loaned by the
state at rate which would satisfy
all as to the return which came to
the State. This was the way be be-
lieved in the State exercising its
paternalism.
Replying to Il question by Rep.
brewster of Portland he said that if
u resolution along that line were Of
Tered he would support it.
Rep. Winter of Auburn asked
Judge Cleaves if he considered that
there was a present need for such a
development and the judge said that
he did not think there was a de-
mand for electricity in the State at
this time which could not be taken
care of.
n. b. Tracey of Auburn told the
committee that he had told the Gov
ernor that if every voter in the State
voted for this resolution it would not
be constitutional. He then went
into detailed statement to the COM
mittee of his belief that the State
today owned this power ~ this he
outlined his opinion, expressed to all
Legislatures for the past eight years.
that under an ancient deed from the
Queen of England the water powers
still remained in the people.
Where did the idea come that
err" asked Mr.. Davies of Judge
Cleaves.
That idea was reported as COM
ing from Gov Baxter" replied
Judge Celaves.
Did you talk with Gov Baxter
about the proposed tax, or did Gov.
| Baxter tell you that the tax would
be $50 per horse power?" asked Mr..
Davies.
Gov. Baxter did not tell me about
any tax" replied Judges CIeaves.
Walter s Wyman was the next
opponent of the resolve. He said
that he represented the Central
Maine Power Co, and also appeared
in opposition as a citizen of Maine
This agitation has now been GO
ing on for 10 years regarding the
State doing something about the wa
ter powers and why the agitation
has been kept up has puzzled me-"
said Mr.. Wyman.
(,
continued Mr.. Wyman, Il supposed
that the water power belonged to
the person who owned it and de-
veloped it. I supposed that per-
son had the right to develop water
power Just as much as he would
! have the right to build a house on
his property or cut the grass on his
property. / cannot understand why
the water powers should be picked
out and have it said that they are
inherited.
but tho real serious matter in all
this affair." said Mr.. Wyman, sis the
constant therat that this proposition
puts before the men and women who
own stock in water power or electric
companies, and 7 will further say
that no necessity for this amend
| ment exists
Mr.. Wyman stated that under the
federal water power act n, licensee
received no rights other than to take
electricity out of the State. All the
rights they secure was to take a
water power site and develop it: they
did not even have the right to take
electricity from the site. There was
nothing in the federal law for any
one to get excited over.
| In Maine he said the eastern or
Penobscot River section was supplied
with electric power by the Bangor
Railway & Electric Co, which has a
surplus of power; the central section
by the Central Maine Power Co, al
so with surplus and the western
| section by the Cumberland County
Light & Power Co, which was pre-
pairing to have surplus. IT would
be a very easy matter to link these
companies together. Aroostook coun-
| ty had an ample electric system of it's
| own and Washington county was de-
. veloping one
Discussing the tax feature he said
| that the plants of the Central Maine
! Power Co, were now taxed to, nearly
their full structural value. plus a
water power valuation. That COM
pany had spent 100000 in the past
five years in the development of pow
ers They could not see what they
had done TO call for this attention mr.