Evening star., 1934-02-18
Federal Power Commission
Rules License Must
Be Obtained.
BODY HAD PREVIOUSLY
CLAIMED NO CONTROL
Company Has Contended Con-
struction Will Not Interfere
With Kanawha Navigation.
BY ROBERT HORNER.

Special Dispatch to The Star.
CHARLESTON, w. Va, February
17.-Plans of the New-Kanawha
Power Co. to begin operations of its
costly Hawks Nest hydroelectric
power project within 80 days, prob
ably will not be altered because the
Federal Power Commission has as
sumed jurisdiction over the project
and has issued a ruling that license
must be obtained, in the opinion Of
George T. Lancaster of Glen Ferris,
company official.
Advised of the commissions ruling,
Mr.. Lancaster said he saw no reason
why the company would have to
change its plans.
The New-KanaWha Co., subsidiary
of the Union Carbide and Carbon
Company of New York, obtained con-
sent of the Federal Power Commission
early in 1929 to launch construction
of its huge project which has cost
upward of $10,O00,0OO The COM
pany's contention was that the Fed
eral Government did not have juris-
diction because New Rivers flow
NOulo IiOG dllC(I lldN1SdSlOll Oil t4AC
Kanawha River. and, according to ad-
vices received here from Washington,
the then executive secretary of the
commission gave consent by writing
to the company that the commits
sion did not claim jurisdiction.
Three-Mile Tunnel.
After obtaining a permit from the
West Virginia Public Service Commis-
sion in 1929 the company went ahead
with its project, which involved tun-
neling three miles under the hills from
HAWKS Nest to Gauley Junction,
thereby obtaining the necessary fall
for its power plant. In conjunction
with this project the company also
erected an auxiliary steam power plant
at Gauley and erected a metallurgical
plant at Alloy, which was to use the
power generated from the hydro
electric plant The whole undertaking
Is understood to have cost about
S12,0o0,oO0.
Since completion of the metallurgi-
cal plant at Alloy, several months ago,
1t has remained idle, waiting for COM
pletion Of the power project. The
power project has about been COM
pleted and. according to understand
ing in business circles here, the COM
pany planned to begin operation of its
metallurgical plant early this Spring.
In assuming jurisdiction, however,
the Federal Power Commission has in
jected some doubt among the indus
trialiStS OF the Kanawha Valley as to
what it intends to do in regard to
the hydroelectric power plant. The
metallurgical company was expected
to consume the power plants entire
output, except that other Carbide
plants situated further west in the
Kanawha Valley also were to draw on
1t for power.
Tax Act Upheld.
Ending years struggle to find a
legal way to collect property taxes In
all S. of West Virginia's counties. to
make total of S25, 900 900, the State
Supreme Court this week upheld the
legality OF the Legislatures last act,
which undertook to tell the counties
how and how much money they could
collect. The courts decision set at
rest all fears that the public schools
would have to be closed and that To-
cal governments would cease to func-
ton, and left the Legislature, still in
extra session, only two major matters
to close before adjournipg sine die.
Another month probably will see the
end of the session.
Under the courts opinion, which
upheld virtually the same law it in
validated last Summer, counties may
lay levies in excess of constitutional
limitations where it becomes neces-
sary to meet bond debt services.
Otherwise the counties are held to
strict limitations, and this will make
1t necessary for the State to provide
additional funds for schools.
Rests on Legislature.
The duty of finding this additional
revenue rests upon the Legislature. 1t
has under consideration a series of
bills designed to raise between S15,-
100000 and $20,0o0,000 within the
year. One measure would provide a
2 per cent consumers sales tax and
another would lay tax Of l per cent
upon the assessed valuations of all
corporations, whether public utility OF
private.