Imperial Valley press., 1924-03-21

ATE enterprise under some such plan
as IS proposed by the Southern Cali
lorna Edison Company, which,
whlle retaining Government control
ana supervision as to the location
ana character of, works to be erect.
Cd, as to the impounding and re-
lease of water therefrom and as to
the rates to be charged for power.
Wlil at the same time wholly relieve
Doth the Government and the ter.
rltory to be benefited from all ex-
pehSe i'll connection with the con
'strurhon of said projects. Wheth-
er the building of reservoirs on the
Colorado River is accomplished bv,
public or private agencies, our com
pany will expect to have allocated
to 1t such portion of the power to
be developed in connection there
with as will reasonably be required
for the service of the territory de-
pendent upon it for electric light.
heat and power and to meet the
cost thereof either by directly par
ticlpating in the expense of deve-
loplng such power or by purchase
OF the power so allocated to it at
the rates and upon the conditions
as may be prescribed by the regulat-
ing authorities.
Advantages Of Publicly Regulated
But Privately Owned Development:
Among the advantages that will
accrue from publicly regulated
but privately owned development of
the proposed project, we desire to
point out the following:
1t will avoid all demands upon
the United States Treasury for this
project at 4 time when public eco
nomy is the most vital of all issues.
1t will avoid the delays and exces-
sive costs that are usually incident
to construction and operation of
publicly owned works.
1t will avoid the withdrawal from
taxation of the physical properties
involved and the issuance of mil
lions of dollars of additional tax
free securities with the consequent
increase in the burden of taxation
imposed upon lands and other pri,
vately owned property.
1t will insure more effective re
gulation by the Government of the
operation of the reservoir for flood
control and irrigation purposes than
would be the case if political sub
divisions were in control of the DOW
err.
1t will result in a more equitable
ALLEGATION and distribution of the
power throughout the several states
sand the communities thereof, than
would be possible with municipal
ownership of the power end of the
Aproiect which would inevitably re-
suit in the power falling into the
hands of one or more of the larger
cities. the smaller towns and COM
munities not possessing the bondinc
ability of financial. strength to fin
ance their portion of the generating
works and the transmission and dis
tribution facilities required in their
service.
Protection Afforded Public in Case
Development Made by Private
Capital:
Finally, we wish to point out that
there is much popular misappre-
hension rs to what will be the situa-
tioh if the proposed project is de-
legated to private capital to carry
through. 1t is often intimated that
this situation would permit the ex.
ploitation of the rights granted at
the expense of public interests.
Nothing could be further from the
facts.
The development of the Colorado
by private enterprise can be done
only under and in accordance with
the provisions of the Federal Wat
er Power Act and the rules and re-.
pulations of the Federal Power
Commission, IAN examination of
which provisions will clearly dem
onstrate that the rights of the Gov
ernment would be in every wise
protected, natural resources pre-
served from exploitation, and every
objection on account of threatened
high water rates and undue profits
thoroughly silenced.
The license cannot he granted for
a term to exceed fifty years, and at
the expiration of the license, wheth-
er for fifty years or less, the United
States has the, right to take over
the project upon paying to the lie
ensee the net investment in the pro
ject. Rates and charges are requir
ed to be far, reasonable and non
discriminatory, and are subject to
the regulation of State regulatory
bodies or commissions. Earnings
are limited to fair return upon
the actual legitimate investment in
the project, and the Government has
the right to appropriate to itself
all excess profits above such rea-
sonable return. The United States
or any State or Municipality, can
condemn the project at any time b.
eminent domain proceedings and
the compensation to be paid is linn
tied to actual net investment of the
licensee' in the project.
AS rental the licensee must pay
the Government for the first calen-
dar year five cents per horsepower
of installed capacity; for the second
year, ten cents; and for the third
and succeeding years, twenty-five
cents. Thus, a development of
600 600 hnrsa.nnunr ,ynnll nftnr tho