The copper era and Morenci leader., 1922-06-16
URGES ARIZONA ID BUILD OWN DAM
 ON COLO. RIVER

PHOENIX-Before an audience at the chamber of commerce lasE night which included several recognized authorities on the power development possibilities of the Colorado river 4. G. McGregor, member of the Arizona resources board and nationally known as a practical and foresighted engi- neer, outlined a plan by which he proposed that Arizona build and operape its own dam at Lees Ferry and thus anticipate any attempt of congress to nationalize one of the states greatest assets.
 We of Arizona cannd: consistently oppose the standardization program for the great water power resources of our state unless we work out a constructive substitute program he declared, then proceeded to offer the logical substitute
 Let the sta:e of Arizona, through proper legislation and condemnation proceedings take over all power pro- jects on the Colorado river within the state. Let the state authorize the issue of low interest, serial long term bonds for the development of it's Colorado river monopoly, with the understanding it will enter into 50- y sociation for the latter to perform all administrative duties," was his pro- posal. The operators association he explained as follows:
 ''The power users will eventually pay all the bills for the construction and development of the project Who will be more vitally interested in the best possible plan and in the man. agement than they?' Let them or ganize an operators association for the purpose of directing and financ ing the development and operation of a state-owned super power project"
 With maps, diagrams and a table of convincing figures the speaker proceeded to point out how such 0 plan would not only be entirely feas- ible, but could be carried out in a much shorter space of time than the proposition along that line now be- fore congress in the Swing bill could be carried out by the government.
 The Swing bill carried into the senate by Hiram Johnson of Califor- mia, proposes to deprive Arizona of its jurisdiction over the power re- sources of the Colorado river, he de clared, adding that he believed Cali fornia would readily accede to his plan if that state could be assured of flood projection for the Imperial val ley.
 McBregor pointed out how a dam at Lees Ferry could be built of rock blasted from the high and narrow cliffs bordering the river at that point, thus reducing cost and time. | He estimated that an adequate dam could be built within four years and could begin to deliver power in it's fifth year. He estimated that to con struct the Boulder Canyon dam of concrete, as proposed in iehe Swing | bill, would require at least 10 years if no unusual difficulties were en- f countered.
 Let those who pay the bills say whether the first dam should be at i Boulder Canyon or Lees Ferry" he invited. gro get federal appropria- hon we must ga. the senators at Washington in the proper mood It may prove quite an undertaking and time may be required to get an ap- propriation of funds for project that will be wrangled over by the politi- c1ans of seven wes' ern states.''
 There are just two things that will give us cheap power from the Colorado river,'' he continued, How rates for capital and good manage ment. As to the rates for capital, ithe state of Arizona can get money at about the same rate of interest as the federal government. As to man. agement. compare the planning and locating of such a project by the senators of the states of the basin with the planning and management to be obtained if the administrative powers are placed where they belong with those who must eventually pay the bills-1the power users."
 Stressing the point that the cost of horsepower under the plan he pro- posed, would be based upon the in- terest charge McGregor showed with detailed figures how Ehe selling price per horsepower year would gradually diminish from s3O to SIP as compared with the present rate of approXi- mately $1O0. He based these figures upon the assumption that the bond interest would be fixed at per cent net and that the bonds would be 75 year serial which would begin to re- fund 25 years from the date of issue
 The plan proposed would be differ ent from the plan used in some states for financing irrigation projects, where the states credit is used in order to get cheap money. In such cases, when the bonds are paid off by individuals, the property goes to the individuals. In the present case, it is proposed that bonds will be paid off by individuals, the power users, bur the property will go to the state.
 Harry Welch presided at the meet ing which was held under the aus p1ces of the chamber of commerce, Those attending gave a unanimous vote of thanks to the speaker and many voiced hearty approval of his proposition.