The Winslow mail., 1926-03-26
MELLON FIGHTS
BOULDER CANYON
FINANCE PLANS

WASHINGTON-Boulder Canyon
hearings in the house came to an
abrupt close Saturday after two
unexpected developments which bid
fair to change the whole charted
course of the fight being waged
around the new Swing johnson
Boulder Canyon bill.
Secretary Melons letter to the
house irrigation committee in which
he expressed opposition to govern
ment ownership and operation of
the project and which made recon-
mendations which if carried out
would require revision of the
Swing-Johnson bill, was the first
surprise of the day.
1t was quickly followed by a
statement to the committee that the
appearance of L. Ward Bannister,
representing the city of Denver,
Colorado, had been arranged with
out the knowledge or consent of
those in charge of the case for the
upper basin states, of which Colo
rado is one.
This statement was made by
DELPHI E. Carpenter, water commits
sioner of Colorado, who said that
Bannister himself asked the COM
mlttee that he be permitted to test
ify. Bannister's discussion of the
dispute between Arizona and Cali
fornia over division of waters of
the Colorado caused Carpenter to
tell the committee that in light of
recent activities, it was apparent
that the state of Arizona was not
attempting to defeat or delay an
agreement on the Colorado river
compact.
Secretary Mellon held that if con-
gress decided the government
should, because of international and
Interstate aspects of the PROPOSE
tion, own. and operate the project,
then a change should be made in
proposed method of financing it.
The bill providing for $125,0OO,OOO
bond issue, to be retired by rev.
enues from the project, was not
convenient to the treasury, which
should be permitted to finance it
in the regular method by appro-
priation. The fact that the pro-
posed bonds would be offset by
revenues from the project, did not,
the secretary said, effect the finan-
cial problem presented by the pro-
ject.
Secretary Melons letter pre-
cipitated a discussion, Chairman
Smith contending it was not dis
approval of the financing plan out
lined in the Swing-Johnson bill.
Representative Hayden, Democrat,
Arizona, however, held it was q
most emphatic disapproval of the
plan and that if the secretary's
recommendation were carried, a
revision of the Swing-J ohnson bill
will be necessary.
Chairman Smith said that regard
less of effect of the latter in this
respect, it indicated the desire of
another member of the cabinet for
early disposition of the Boulder
Canyon question.
Bannister urged the committee
not to approve the SWlng-J OnnSOn
bill without protectice amendments
accerted that unless the entire
Boulder Canyon project, and with
drawal of all waters from the river,
were placed under the terms of the
compact, the rights of upper basin
states would be jeopardiZed
In this connection, he also urged
that no state be permitted to par
ticipate in benefits of the Boulder
Canyon project unless it ratified
the compact, which under present
conditions, he said, would deny
Arizona the benefits of projects in
all respects except use of electric
power. Power from the project, ne
contended, should not be withheld
from Arizona as this would amount
to "DerSecutiOn.