Douglas daily dispatch., 1926-01-03
SWINC-JOHNSON
BILL ATTACKED
BY S. S. MERRILL

WASHINGTON, Jan. 2.--An attack
on the new Swing johnson bill for
development of the lower Colorado
river was made in the following let
ter, made public today, addressed to
Senator McNary, Oregon, chairman
of the senate irrigation and recla-
nation committee, by o. c. Merrill,
executive secretary of the federal
power commission:
'There is no requirement, either
with respect to the dam and reser,.
voir, or the power plants built TO
utilize the water released, that the
project shall best be adapted to a
comprehensive scheme of improve,
ment for water power and other
beneficial uses.
There is no requirement that les
sees shall maintain their works in 4
condition Of repair adequate for their
efficient operation--or that they shall
make necessary renewalst-or estab-
lish and maintain adequate deprecia-
tion reserves-or shall conform to
regulations from the protection of
life, health and property-or be .liable
for damages to the property of others
operation of the works.
There are no requirements re-
specting the time within which the
project or any part thereof shall be
begun or completed. There As no
requirement that any federal agency
shall in the absence Of state regu-
lation or an interstate agreement,
have power to regulate rates.
There is no provision Tor the ex-
preparation of excessive profits. There
is no requirement, that il the safety
of the United States demands it, the
government may have the right to
enter upon and use the properties oil
lessees upon payment of compensa-
tion.
There are no provisions for en-
forcing any regulations made under
the terms of the bill, or of penaliz-
ing any willful failure to comply
with such regulations or with the
provisions of the bill"
In place of the financing pro-
visions of the bill which require the
cost, estimated by the reclamation
bureau at $91,OOO.OOO to be paid by
advancing funds from the United
states treasury, Merrill suggested
that the cost be met by issue OF
federal government bonds payable In
SO years. callable in whole or IN
part on any interest date, interest
on these bonds accruing prior to
delivery Of the properties to become
a capital charge.
Merrill further suggested that cost
Of the dam and control works be
divided between power and flood
control and that the bonds shall be
paid. principal and interest, by irri-
cation districts and by licenses OF
thes power project; interest payments
after five years Lapses would be
punishable by cancellation or for
feiture.
summing m the recommendations
Merrill stated that: In his opinion,
tho probosed dam and reservoir for
impounding twenty million acre feet
of water is. reasonably adapted to "a
commemorative scheme of development
Of the lower Colorado river; that
any dam should be so adapted, IN any
lease of power privileges the terms
of the federal water power act shoulo
amply; the rights of the upper pasln
states in the waters of the COLORADO
river should be amply protected; ana
If federal aid is extended it should
be completely repaid and should
preferably be extended in the form
of credit rather than of drafts on
the treasury"
The federal power commission Will
meet Monday afternoon and it is e&s
pected that the Colorado river de-
yelopment scheme will be one of the
major topics of discussion.