Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-13
HOOVER DAM TEST
SUIT AUTHORIZED
Supreme Court Gives Arizona
Right to Fight Act of Con-
greSS and Contracts.
BY the Associated Press.

BY the Associated Press.
Two important decisions affecting
Arizona's fight to prevent the construc-
ton of Hoover Dam on the Colorado
River were handed down today-one
against the State and the other In hel
favor.
Shortly after announcement OF de-
cision by Controller General McCarl
declining AriZona'S request that funds
for the dams construction be held up
the Supreme Court granted the State
permission to test by suit the validity
of the congressional act and Colorado
River State compact under which the
project Is being built.
Meanwhile, initial work Of construc-
ton is expected to proceed without
delay.
Wilbur Announces Decision.
Secretary Wilbur announced Nc.
Carts decision, which said there APP
peared to be nothing presented BY
Arizona requiring or justifying a hold
ing up of funds for construction.
The request to test the law under
which the dam at Black Canyon is Il
be built was filed by K. Berry Peter
son, attorney general of Arizona. The
suit is expected to be filed agains
Colorado River interested In the project
Arizona in the request given the SUI
preme Court commended that both the
Santa Fee compact and the congress
sional action under which the Govern
ment has undertaken construction Of
the dam constitute an invasion OF its
rights. 1t takes the position that il
will not receive under the plan adopted
its fair share of the hydroelectric power
from the dam nor the water from the
Colorado River to which 1t Is entitled.
McCarl's decision said there appears
to be nothing presented by the State oil
Arizona requiring or justifying holding
by this Office that the appropriations
made for the specific purpose of COM
mencing construction Of the dam and
incidental work in connection with the
Boulder Canyon project act Is not avail
able for that purpose"
Therefore" he added, mo action
will be taken to withhold approval OF
Withdrawals Of funds for such pur-
pose"
Arizona had contended the contracts
executed by the Department OF Interior
for the sale Of power TO the city OF Los
Angeles, the metropolitan water district
of Southern California and the South
elm California Edison Co. were invalid
because of the alleged inability of the
city and the metropolitan district to
make the contract.
McCarl held the same argument had
been presented to the Attorney General
Of the United States. who had held the
contract valid, and to congressional
committees which recommended the
initial appropriation based on the con-
tract for commencement of construc-
ton
Ample Margin for Repayment.
Under the power contract $1,000
primary horsepower would be taken and
paid for each year by the three con-
tractors
The Secretary of the Interior re-
serves the right to reallocate SO pei
cent of this power to Arizona and Ne
vada whenever they demand it. and &
per cent to IL smaller municipalities
of Southern California.
1t was estimated that. within so years
the Government would receive between
$209 900 900 and $3.50 900, 900, asSum-
ing that the initial rate of 1853 mills
per kilowatt hour was charged for use OF
the water This, it was commended, would
give ample margin for repayment OF
the construction cost of the dam and
payment of 37is per cent OF the ex-
cess to Arizona and Nevada in lieu OF
taxes, with payments into the Colorado
Dam fund for construction work on
the river TO benefit the other States
which border upon It,
The payment to each OF the two
States, 1t was estimated, would range
between 100000 and $1,000 annually