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- 8 result in the creation of operation and administration controversies to be avoided and which a unified development will avert. The transmission lines for the distribution and retailing of this power should be financed by its purchasers. To secure the greatest economy, main transmission lines leading to different localities should be constructed for joint use. This plan of power development is not an experiment. It has been adopted by the Government with satisfactory results in the construction of other reclamation works, where the generation of power is an. incident to irrigation development. Salt River, Minidoka, Lahontan, and Guernsey are illustrations. Section 6 provides that no part of the construction cost of the dam and the appurtenant works shall be charged against any lands irrigated by the waters of the reservoir. If the all-American Canal is to be considered as an appurtenant work, the bill should be amended. It is believed that the sales of water from this canal will return not only the cost of operation and maintenance but pay construction costs without interest, as is done on other reclamation projects. All revenues from power, irrigation, and domestic water supplies should be placed in a common fund and used for the payment of interest, operating expenses, and build up a sinking fund for redeeming the entire bond issue. In order to give assurance before any large expenditure is incurred that the anticipated revenues from this development will be obtained, the bill should contain a provision that before any bonds are issued and sold and before awarding any contracts for construction, the Secretary of the Interior shall secure the execution of contracts with irrigation districts, municipalities, and corporations, on terms to be fixed, for the delivery of all water to be supplied for irrigation, domestic, and municipal uses, and shall obtain definite commitment for the purchase of power from responsible bidders in an amount to insure a sufficient return from this development to repay the money to be expended with interest within a period of 50 years. Section 8, which provides for the distribution and use of all water for irrigation, power and otherwise, in accordance with the Colorado River compact, seems well conceived and is a necessary part of this legislation. This appears to afford ample protection and assurance to those States included in the upper division of the watershed against the creation of a priority of right through the building of these works, which would impair in any way their right to the volume of water guaranteed to that division in the compact. I suggest for consideration amendment to the effect that the benefits to be derived from this development shall be available only to those States or the citizens of those States which have ratified the compact. I suggest the amendment of section 9 as follows: In line 1, page 11, strike out the words "the proportionate share" and insert in lieu thereof the words "an equitable share in accordance with the benefits received." After the word "lands" in line 15 insert "subject, however, to the provisions of subsection C of section 4, act of December 5, 1924 (43 Stat. 702)." The first amendment suggested is designed to avoid the necessity of fixing a flat rate charge without regard to the classification or quality of the land. Experience has shown that a flat rate charge is undesirable in some cases. The second amendment I believe of prime importance. If soldiers and sailors are to be given a preference, experience has shown that provision should be made for selection. This is desirable for the protection of all prospective entrymen, soldiers, and sailors, as well as civilians. Since section 1 provides for the building of a dam either at Black Canyon or Boulder Canyon, I suggest that line 11, section 10, be amended so as to designate the subfund there mentioned us the "Colorado River Dam fund" which would be applicable in either case. The present designation might possibly prove a misnomer. I suggest the following proviso be inserted at the end of section 10 of the bill: "Provided, however, That no work shall be begun and no moneys expended on or in connection with the works or structures provided for in this act until the respective legislatures of at least six of the signatory States mentioned in section 13 hereof shall have approved the Colorado River compact mentioned in said section 13 and shall have consented to a waiver of the provision of the first paragraph of article 11 of said compact, making the same binding and obligatory when it shall have been approved by the legislatures of each of the seven signatory States, and until the President, by public proclamation, shall have declared that the said compact has been approved by and become binding and obligatory upon at least six of the signatory States."
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