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9 An approximate estimate of cost, operating expenses, and income leaves no question as to the ultimate solvency of this undertaking if carried out along the lines proposed. The main source of revenue will be power, and the rate assumed is lower than the wholesale prices now being paid in the West. Those of which we have information range from 3 1/2 to 8 mills per kilowatt-hour, measured at the switchboard. As the largest consumers of this power would be distant, a low figure of 3 mills per kilowatt-hour at the switchboard has been assumed in the estimates which follow: Colorado River Development—Boulder Canyon Reservoir, All-American Canal. CAPITAL INVESTMENT Estimated cost for-— 26,000,000 acre-foot reservoir_____________________________ $41,500,000 1,000,000 horsepower development_________________________ 31,500,000 The All-American Canal________________________________ 31,000,000 Interest during construction on above, 5 years, at 4 per cent__21,000,000 _____________ Total---------------------------------------------------------125,000,000 ANNUAL OPERATION Estimated gross revenues from—- Sale 3.6 billion kilowatt-hours power at 3/10 cent___________$10,800,000 Storage and delivery of water for irrigation and domestic purposes______________________________________________ 1,500,000 ____________ Total------------------------------------------------------ 12,300,000 Estimated fixed annual charges for—- Operation and maintenance, storage and power_____________ 700,000 Operation and maintenance, All-American Canal____________ 500,000 Interest on $125,000,000, at 4 per cent_____________________ 5,000,000 ___________ 6,200,000 Estimated annual surplus, $6,100,000, or thought to be sufficient to repay the entire cost in 25 years. The height of this dam as fixed will not prevent the construction of the proposed dams at Diamond Creek or Bridge Canyon. The approval of this project should open the way for other development and encourage the construction of projects above this dam for development of irrigation, power, or other purposes. Although the difficulties of construction and magnitude of the proposed structure compared with any other for similar purposes are unprecedented, assuming that it is a feasible engineering possibility, the Reclamation Bureau of the Department of the Interior as now organized, with its present commissioner, is competent to construct the works contemplated in S. 1868. With the amendments suggested, I recommend the favorable consideration of this bill by Congress. Respectfully submitted. HUBERT WORK. The CHAIRMAN. At our last meeting we concluded that it would be wise to have a tentative bill prepared containing some suggestions that had been made, and we have a "committee print" this morning which I assume will be the basis of our considerations in this meeting. Mr. Swing. Mr. Chairman, pursuant to what I told the committee at the last meeting, with such assistance as I could get, not only from interested parties themselves but also from the department, I have been at work undertaking to embody in my bill the suggestions of the Secretary of the Interior and now have before the committee, under the title "committee print" a bill, which I believe substantially conforms to the recommendations of Secretary Work,

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