The Republican journal., 1921-04-07

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State of Maine, thru their represen.
tatives in the 1923 Legislature, will
be able to take forward step in
water power Development. A con.
stitutional amendment would be val
ueless which in any way restricts or
limits the power of the people of this
State to decide this question for
themselves and upon its language de-
ponds to large extent the future
health, safety and prosperity of this
State.
Taxation.
The last paragraph of the proposed
amendment deals with the taxation
OF water powers and the Water
Power Commission has made no rec
ommendation on this phase of the
question.
BY the terms of the Federal Water
rover Bill the water powers of
Maine are in danger of passing under
federal control, and it we'll may be
mat the only method of preventing
'nls Is to levy a tax upon hydro
eiectrlc energy generated within the
State and shipped beyond it's borders.
Under the decisions of the Supreme
court of the State water powers
altho they represent great value, are
not taxable as property. This de-
clsion is not in conformity with the
law of many other states but is bind
ing upon our courts until the State
constitution is changed These
water powers today virtually escape
taxation and it has been well said,
for the State to receive no COM
pensation of any kind for the util-
izatlon of such great wealth pro-
queer (water flowing over a dam, or
horsepower developed) is to bring
into existence the greatest po sible
injustice in the matter of taxation.
In Maine there are about 400. 900
developed water horse power the fair
value of which is not less than 500
per horse power and in some devel-
opments its value is even larger.
There also is l 200, 900 horse power
pndeveloped in the State. These
sreat values should become a source
of revenue to the State. If the Leg
islature adopts this amendment and
II the people later ratify it the leg
islature of 1923 will be in a position
TO pass some reasonable tax laws
Under which these valuable rights will
share in the burdens of taxation.
prNf y
yard Engineering School, water
power expert, in a lecture delivered
IN the Maine House of Representa-
t1ves of March 10th. 1921. stated that
every developed horse power in
Maine can do the work of at least
. tons of coal, He stated that this
means saving of at least $50 per
horse power per year on a coal basis.
If each horse power will save $50 per
year in coal it is easy to compare
what the annual saving to the people
OF Maine would be if our water
resources were fully developed and
gives an idea of the value of Names
Water-power. With the ever increas-
ing demands for appropriations now
made upon our legislature, some
tanned, else the burden of taxation
can no longer be borne by our
citizens.
1t was my intention to submit this
amendment to you at an earlier date
but circumstances over which I had
no control prevented my doing so.
This Legislature in my opinion will
act wisely if it passes this construc-
tive legislation, for under the first
paragraph of the amendment the peo-
pie can derive direct benefit from the
development of storage reservoirs
and water powers if they later deter
mine by proper legislation that they
desire to do so and under the second
some relief from the crushing burden
of taxation can he obtained without
will be called upon to pay
The amendment follows:
Constitutional Amendment.
''The conservation. storage, con-
troll and use of waters, and the de-
velopment, improvement, transmits
sion, utilization, electrical intercon-
nection, control and sale of water
powers, by the State of Maine, either
directly OF thru suchs public district
or districts, as the Legislature may
authorize and not otherwise are de-
clared to constitute paramount public
uses, for the accomplishment of
which right of eminent domain may
be exercised, and in furtherance Of
which the right of taxation may be
employed; and the Legislature may
also provide therefor and for the
apporticnment to, and assessment
upon, the lands and property which
shall or may be benefited thereby,
and according to the extent of such
benefits, the whole~or any part of
the cost of such conservation, stor-
age, development, improvement,
transmission, control, electrical in
terconnection, and utilization of said
waters and water powers, including
the cost of maintenance and opera
ton thereof
For the purposes of taxation
within the State, and hydro-electric
energy generated therefrom, may DO
treated by the Legislature as prop
erty distinct from the land or struc-
ture to which they may be appurte-
nant, Or from which they may be de-
rived and Sllch DOwars nriviIapas