The Winslow mail., 1923-05-18

redemption costs, proper reserver
Tor depreciation, etc., plus an equit
able royalty or profit to the State.
| would leave such matters as royal
ty or profit to the State, and the pol
icy to be adopted in the reduction
of bonded Indebtedness, etc, entirely
in the hands of the legislature.
would have the State obligate
| users wherever they may be as fast
as it is commercially feasible. L
would give the State, through it's
Legislature, the sole power of deter
mining this commercial feasibility.
| would let the prior users of pow
er participate in any reduction in
the price that may result through
subsequent developments and in
crease output, On the other hand, |
if the power developed in any pro-
ject costs more than from the pre-
vious projects, I would have the sub
sequent users bear the burden of
such increased cost In other words,
in general, / would have each new
project or demension of service
stand on its own feet.
/ would have the bonds long term.
say fifty years, no refunding COM
mencing for at least twenty years,
making the burden ON the power
users who bear the brunt of the
| first development period as light as
possible
l would have the management as
outlined one of the conditions of the
issue Of all bonds, so that the bond
| holders could positively prevent any
| change in the form of management,
if they see fit, until all bonds issued
subject to such management are re-
tired.
The various issues of bonds that
will be required from time to time
as the development progress should,
of course, be subject to the will Of
the taxpayers of Arizona.
While the bulk of the power will
| be delivered to California, it may
not be necessary for Arizona to con-
struct the transmission lines into
California. If this proves the case,
it would quite materially reduce our
financial responsibility in the first
development I would, however,
give the Arizona State Power Cor
poration the power to acquire prop
erty and transact business in any
state, the same as any private cor
poration would have, enabling the
State to enter any market and COM
pete in the sale of it.
/ / have merely sketched a brief
outline of a plan. There are many
details to be taken care of the work
ing out comprehensive legislation to
cover the plan proposed.
There is strong agitation at the
present time against the further is
sue of tax exempt bonds. Arizona
should have no hesitancy in this
however. There are many who ad-
vocate financing the development by
direct appropriation from the federal
treasury. Surely there can be no
serious position ito our depriving
the federal treasury Of any the tax
on the bonds for such a development.
If Arizona does not act promptly,
the opportunity to issue tax exempt
bonds may pass. If Arizona delays
long, California may success in hav-
ing our resource natfonalized.
Present State Administration Has
/ Opportunity for Great Service.
We already have here in the Salt
River Valley a demonstration of a
great enterprise managed through a
cooperative organization OF the users
of that enterprise,-those who pay
the bills, if you will,-the water US
ers. This enterprise is a model in
efficiency and a tribute to the sound
business sense of the people of that
Valley.
Why shouldn't the people Of Ariz-
ona take advantage of a combina-
ton of low capital charges and eff
ficient management that will give the
State the maximum benefit from the
Canyon development, and will even
tually give Southwest, which posses
ses such vast potential possibilities
the lowest cost power in the world?
When we solve the problem of the
comprehensive development of the
Canyon for power, we at the same
time solve the problems of flood con-
troll and water for reclamation in
the lower Colorado River Basin.
I believe the present State admi-
nistration, our Governor and Legis-
Iature, have an opportunity to per-
form an unparalleled service by
launching Arizona into the owner
ship of a great super-pOwer resour-
ce under management that will be a
pattern for others to follow, and
that will be a monument to the en-
terprise foresight and sound bust
ness sense of our people for cen
turtles to cOme,-a monument to a
people possessed with true pioneer
spirit, who recognized their oppOr-
tunity and seized it.