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28 their lines and the large power companies, who say that if they had notice that it was going to be available 10 years from now there would be no question as to there being a demand for the whole of it. That can easily be assured by simply arranging in the years that intervene for the development that will be ready for it as soon as we can turn it over the wires.I want to say that in the bill there has been incorporated three alternative ways of dealing with this. The Secretary, I find, is authorized here to sell power at the power house, to lease units in this power plant, or lease the privilege of erecting a power plant. These are the privileges which he would have discretionary power over.Mr. LEATHERWOOD. On that question, does that contemplate the construction of generating plants at or near the dam?Doctor MEAD. Yes; but I think anyone who will look at the plans for that work will admit that separate plants are not feasible.Mr. LEATHERWOOD. DO you think the Government could maintain perfect accord between these lessees at the dam?Doctor MEAD. NO. My view is that this power house ought to be built as a part of the general scheme, and that it ought to be operated as a single plant, and that the best way is to allocate and sell the energy after it is generated.Mr. LEATHERWOOD. AS I listened to the reading of the bill by our chairman, I noticed a provision for the erection of power plants upon canals that might be constructed.Doctor MEAD. Yes.Mr. LEATHERWOOD. Is there any possibility of generating any considerable amount of power in that way?Doctor MEAD. Yes, there is.Mr. LEATHERWOOD. Could you give us some general idea about it.Doctor MEAD. Yes. Before we come to that, I want to say this: Of course, there is, on the part of power companies that are generating and selling power a great misgiving which I understand and can sympathize with, that if the Government should build this power plant, it might lead to going into the business of building power plants.Mr. LEATHERWOOD. I do not want my question to be misunderstood. That is not the misgiving I had in mind. I am wondering whether or not you might not be creating an agency to fight you at the dam.Doctor MEAD. Yes; I want to say that it is my view and I know it is the view of the Secretary, that no power development that is a power development ought to be touched by the United States. That is, other power developments that are feasible up along the stream are to be acquired by private enterprise, and I do not share in that feeling that this would be a precedent that would lead to it. I would not favor it here if it were not absolutely necessary to provide water to irrigators at a price they can afford to pay.Mr. ARENTZ. Could not these individuals who were contemplating the development of water power between the Laguna Dam and minor elevations of 120 or 130 feet use that as a whip to receive certain concessions from the United States Government below the Canyon Dam?Doctor MEAD. Yes; but I do not want to leave this main power development until I have an opportunity to clear up my attitude

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