The New York herald., 1922-01-05

Of the State to maintain the canal at
the maximum Of efficiency. A channel
rs feet wide, with q depth OF IL rect
of water, has been promised. The State
has constructed such a channel. IL Is
honorably bound to those VINO invest
capital in canal carriers to maintain 1t
at least at that depth and width. The
present equipment for maintenance is
inadequate and the shops of the old Erie
Canal are both inadequate and ini-
properly located for use on the improved
canal. I recommend that provision be
made for modern equipment ana shops'
"It is also necessary to conduct
campaign of education to teach the
public sthe advantages Of the canal and
how to use 1t. That will stimulate the
construction of carriers.
.It is also necessary to apply modern
methods of transportation. The state
has already provided terminals ana
terminal facilities; 1t must be UNDER
stood that these will be developed as
the needs Of commerce justify and re-
uuire II. Rail connections must be- Sc
cured where possible at these terminals
and trust that provision can be mace
for through shipments by rail and water
under through bills Of lading.
Water Power Control.
AFTER many years Of fruitless dis
cussion the Legislature at its last ses-
sion adopted the definite policy OF en-
couraging the development OF water
power by private enterprise under such
safeguards and such supervision ana
regulation as will adequately protect ana
promote the public interest. / am per-
suaded that that Is the only policy that
offers any prospect of the economical
and efficient development OF the potential
water power of the State. which / am
advised amounts to 100000 continuous
horsepower in interior streams alone,
much of which are privately owned and
require no license from the State for
their development The Water Power
Commission has received up to date
twenty-one applications for preliminary
permits and licenses for the develop
ment of power coming within the scope
OF the. act. No licenses. however. have
been granted, as the commission has
adopted the wise policy OF proceeding
slowly and of first making sure that
the law is adequate to protect the public
interest. The law has now been on the
statute books nearly a year with the
suggestion. The commission will make
a report to the Legislature with recon-
mendations for needed amendments to
perfect the law. invite careful con-
sideration OF those recommendations and
without considering them now in detail
wish to emphasize the Importance OF
plainly providing for the regulation OF
the use and distribution of power de-
veloped under license from the State
and of rates, service and capitalization
of licensees.
"The state should grant licenses for
the development of power for general
distribution, not for private use. With
q general distribution assured, with the
power to fix rates and to regulate SER
vice, capitalization and secured debts
Of the licensee safeguarded. the maxi
mum public benefit from the develop
ment of the potential water power
within the State will unquestionably be
secured through private enterprise.
For More Development.
"Thc public should be assured of pro-
lection and the investment of capital
should be encouraged by the like as
surance of a reasonable return on actual
investment. The statute now provides
think 1t might well provide for pref
erential right in municipalities to pur-
chase on the terms prescribed by public
authority power developed under n
license from tho State. OF course, such
T. preferential right should not be per-
mitted to interfere with other DISPOSE
ton, IL not exercised. and unless exer-
cised within a given time of notice of
the quantity Of power available such
power should be released from such
right to purchase. I trust that the law
will be perfected at this session of the
Legislature and my hope is that the
definite establishment OF settled policy,
Just alike to the public and the investor.
will stimulate the development of water
power. which L. becoming more and
more necessary each year
II renew my recommendation OF last
year that Article Z. Section Z, OF the
state Constitution be amended so as to
include power development among the
purposes for which the specified 3 per
ccntum of forest preserve lands may be
used. without, however. increasing the
percentage that may he used for all
purposes. Unless an appropriate resolu.
tion be passed this year. n delay OF
from one to two years will result.
"The surplus waters of the canal pre.
sent e u1lIerGnt problem. Incy are a by
product. Navigation Is the primary pur.
pose OF the canal. Any use of the sur.
plus waters must be entirely subordlnat.
thereto. That subordination can only be
effectively secured. In my opinion. IL tn,
development of power from the surplu.
waters and the maintenance of tn,
canal for navigation are under singl,
| control.
/
To Protect Navigation.
The water power act provides for tn
leasing OF surplus waters by the wate
Power Commission upon the certificat
OF the Superintendent of Public Works
and tho act theoretically provides for
complete control IN the Superintendent
of Public Works of such waters. Blu
past experience conclusively proves tina
such control will not be effective unde
private development. Theoretically an
legally the private power owner woul
get only such water as was not needle
for navigation. practically the needs O
navigation would often be subordinate
to the desire for power. as has bee