Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-04-06

dustries along the river as well as
| citizens who use the current OF the
power companies will derive imme-
date benefit therefrom. All profits
over per cent which the company
makes will be credited to the State.
and this will reduce the price at
which the state may acquire the
| property il 1T SO elects.
| This charter permits the develop
ment of electric power in connec-
! ton with the storage development,
but the States interests are fully
protected under a clause that pre-
vents electricity generated on this
| property from being taken out Of
| the State, contrary to the provisions
of our general laws relating to that
subject.
The payment Of rental herein pro-
vided will begin on July !, 1924. &C
| cording to the charter which charter
must be accepted within five months.
CONSTRUCTION work will he begun on
| the dam at once. and it is made OBJ
| ligatory on the lessees that the con-
| struction work shall be pushed for
| ward to completion with all reason
| able expedition. II the charter is
not accepted, ship work Is not be-
gun and carried on without delay.
| the charter will lapse and all rights
granted under 1t. will thereupon be-
| come of no effect.
a very important provision Of the
charter is that the company must
! fill annual accounts with the State
| Auditor. who has the right to ex-
! anime its books at any time. The
| State also will derive a large income
| In addition to the rental on account
of the taxes that will accrue to the
l. ~f
| No exemptions from taxation arc
| granted. and il it costs a million
and a half to build the dam, there
| will be that amount Of property
available for taxation purposes.
! If the State should not see fit to
| take over the property at the end
of forty years. the terms of renewal
| of the lease will be agreed upon be-
! tween the Legislature of that period
| and the company; and these failing
| to agree, the Supreme Court is to
! fix the rental to be paid.
| | have outlined al some length the
! details of this charter so that YOU
all may understand it. In my opinion
! this document inaugurates policy
of leasing rather than deciding away
/ the states natural resources. If YOU
adopt it. YOU will have placed upon
our Statute books legislation that
/ will be hailed as both wise and con-
! Structive, and YOU will have estab-
! lishcd precedent and a policy that
! we'll may guide those who follow.
These arr the terms of the Dead
7 river charter. In my opinion this
/ marks a new era in the water power
! history of the State of Maine. If
( this Legislature in its wisdom cnacts
I this bill into law, it means that
never again will a private corpora
ton obtain storage rights from tho
State under deed or transfer, but
that all such rights. in all probability,
hereafter will be granted on lease
( under which a rental accrues to the
/ State and under which there are
proper safeguards to protect the in
tcrests of the people.
This .chartcr means that private
; development will hc encouraged in
! every way. and that the great in
dustries along the kcnncbec river
! will be enabled to secure large
I amount of cheap power. which they
sorcly need. and for which they arc
/ willing TO pay. 1t also means that
! future generations OF Maine people
, Will derive an ever increasing in
come from these water sources. II
means that the discussion of the
kenncbec Reservoir charter that has
taken place from one end Of tho
State to the other will cease. In
my opinion, the people will approve
this policy of leasing rather than
deciding away their property.
In my inaugural address delivered
to this Legislature on January J.
1928, | stated Water storage is the
foundation of successful water pow
Ell development. We all
want del elopment. and if the State
does not undertake it, private inter-
csts should be allowed to do so with
the States interests fully safeguard
ed. In every private storage develop
ment hereafter undertaken. l would
reserve to the State the right to pur
chase it at any time for a fair price
without paying for the franchise or
storage rights granted by the State,
the purchase price in no event to cX
coed the cost of the Development"
The State also could charge
Waer storage companies a reasonable
annual rental for the privilege of i'm
pounding the water. and arising the
natural water level of the lakes and
reservoir basins. In this way private
development would be encouraged
the State would derive an income. its
rights would be protected. and it
would be in a favorable position to
acquire valuable rights upon pay
mcnt of fair price therefor if con-
ditions later warranted such action
4 All these conditions that | outlined
in my message have been complied
with in the new Dead River charter.
| am presenting it to you for your
careful consideration, believing that
ii you understand it you will agree
with me that it is the solution Of the
issue raised by the kennebcc Rescr
voir charter. This is not revamp-
ing Of the old charter; it is an en-
tirely new and distinct proposition
under a new name and founded on an
entirely different principle.
I have referred to the referendum
petitions that have been sent broad
cast over the State. AS these daily
are pouring into my office it will of
course be necessary for me to honor
them and to have a referendum on
the kenenbec charter, unless this
Legislature takes same further &C
ton. The only course open is for the
Legislature to repeal the kennebec
Reservoir charter. There is a clause
in the new bill that provides that this
shall be done. If this is done all rea
son for referendum will be removed,
and those who have signed the petit
lions will have accomplished their
purpose. If this Dead River is not
passed 1 of course shall press the
referendum on the kennebec charter,
so that the people may decide that
issue for themselves.
Important matters often times are
settled at the last moment and | be-
l:eve this is such case. The mat
ter has been thoroughly discussed
from every angle and | believe the