Evening star., 1932-08-07
STATE FIGHTS j. s.
ON WATER POWER
Virginia's Claim Over New
River Project Tests Scope
of Federal Control.

BY the Associated Press.
Wrapped in the simple title THE New
River Case" there rests in the Federal
Court at Norfolk Va, an Important
question of the scope of the Govern
ment's authority to regulate water
power development.
Pointed to as a probable precedent,
the question to be settled is complex IN
its ramifications for the future but
stands in its unadorned essentials at
present as:
Whether the Federal Power Commits
sion, on behalf of the Government, or
the State Of Virginia, has Jurisdiction
over the New River.
The commission contends it has, and
has notified the Appalachian Electric
Power Co. that before it can build an
$11 100000 plant on the stream it will
have to get Federal license.
Virginia Disputes Contention.
Virginia joins the company in the as
sertion that the power commission does
net have Jurisdiction, and that the only
thing required for the company to start
work is State approval
The commission lost the first skir-
mish when the Norfolk court overruled
its motion to dismiss the company's
suit for an injunction against the COM
mission to prevent it from interfering.
This leaves unsettled the basic point
Of jurisdiction, which is expected to be
carried either by one side or the other
all the way to the Suprtme Court of
the United States.
Power commissioners, attorneys and
members of Congress concede that on
xYrf1I e%
as the case will be looked to as a guide
post in handling similar cases arising
under the water power law by which
Congress set up the commission to
supervise utility developments on navi-
gable streams or affecting interstate
commerce.
Issue of Navigation.
The commission contends the river Is
navigable and that development on it
would affect interstate commerce as 1t
empties into the Kanawha River in
West Virginia, and there is no doubt
about navigability of the latter.
The contrary is the contention of the
company and Virginia. The stream is
not navigable in the sense that boats
ply it regularly now. The navigability
question is strictly legal and whether it
mas Deen DaVlgdIeu Ut COulu Ue Wlell
improvement is to be settled.
If navigability definitely can be es-
tablished, there will be little left on
which to challenge the commissions au-
thority, as the law specifically gives it
power over navigable streams.
To press its case, the commission has
appointed Huston Thompson, former
Trade Commission chairman, as special
counsel. Whether an appeal will be
taken from the recent adverse decision
of the Norfolk court is expected to be
decided within a few weeks.
First Step in Case.
This decision, however, is not looked
on as conclusive by the Government,
which views it as a step that must be
disposed of in preliminary maneuvering
before the real issue can be settled
In one form or another, the New
River case has been up for several years.
II was handed along to this commits
sion by the old commission of cabinet
officers which passed out of existence in
1880 without a definite decision.
Consideration of the problem by the
present independent commission led to
throwing it into the courts for settle
ment.