Evening journal., 1922-09-30
START fight
ON WATER ACT
New York Wants Delaware
to Join in Attack on
Constitutionality
SEE LOSS OF
REVENUE IN LAW

Attorney General Sylvester d.
Townsend, Jr.. proposes to take up
with Governor Denney the Federal
Water Power Act of 1920 which is
being fought by the State OF New
York on the grounds Of its consti-
tutionality.
Mr.. Townsend recently attended a
conference in New York City in con-
nection with the act. Under the act,
the State Of Delaware would lose
considerable money, which would be
obtained by the government through
the operation OF the bill.
On September 21st a conference
OF the Attorneys General OF various
states was held at the Bar Associa-
ton Building in New York for CON
sideration OF a bill filed in the United
States Supreme Court by the State
constitutional the act and to deter
mine what other States would Join
New York in the pending action.
The Act provides in part that II
censes shall be issued by the United
States on navigable streams OF the
United States for the development
Of water powers: that the licenses
shall not extend for more than fifty
years; that the licensee shall pay a
rental; that the funds realized shall
be usedgfor various specified govern
mental. purposes; that at the end OF
fifty years the property shall be
vested absolutely IN the United States
and generally that the United States
shall have exclusiv Jurisdiction and
control over such navigable streams
subject however, TO certain apparent
ly indefinite rights which are re-
served TO the States.
Mr.. Townsend said today: The
situation presented Is an intricate
one and I probably have not fully
and accurately covered II.
THE State of New York is oppos-
ing the Act upon various grounds,
chief among which are that the Act
IS an invasion of State rights and
will deprive the State Of numerous
sources OF revenue which Il now has.
II was contended that under this Act
il would be impossible even 20 lay
pipes and wires under navigable
streams without securing a license
from the Federal Government. Il
was also urged that the States would
be deprived of their riparian rights.
The matter might not be of so
much importance TO the States, ex-
cept for the construction placed by
the courts, on the words 'navigable
streams II seems that stream is
when used for any pur-
pose OF navigation such as floating
logs in the spring time. when streams
otherwkise unnavigable, are high or
when used for the carrying of trap
pers' commodities and supplies, or
when used for various purposes OF
Ike nature.
'eThe State OF New Jersey was par
ticularIy interested because the
revenue derived from the sale of ri
parian rights and meadow lands In
hat State Is appropriated by the /
New Jersey Constitution OF 1S46, for
he support of the public schools.
These revenues are very consider
able, because the State Of New Jer-
sew either has been or is now the
owner Of all OF the riparian rights
rom low water mark TO the chan
lel OF the stream, and derives con-
,iderable revenue from their sale.
"In discussing the matter OF the
act OF the Federal Government in
aepriving the States Of numerous
Iources OF revenue. Attorney Cen
raj Barrett Of Missouri, in the
course OF his remarks stated that
Missouri paid in income taxes TO the
Federal Government the sum of
,ighty-slx million dollars while for
N state purposes. income, general
property and inheritance taxes all
old. the state raises only fifteen
million dollars.
"It. was apparently the concensus
q opinion that the other States were
imilarly taxed.
after I have a conference with
Governor Denney concerning the
natter I shall abide by his sUgges-
ion as to whether or not the State
J.: Delaware shall assist the State OF
ew York in it's suit"