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Professor DURAND. I can say yes to that question. I believe the city of Los Angeles is ready to make an immediate proposition. Just what the terns of that proposition might be, of course, I am not prepared to state, but I do know that she is so anxious to insure for herself an adequate supply of power in the future as to be quite ready to enter into an immediate understanding with regard to the point you have mentioned. Mr. SMITH of Idaho. It has been represented in the newspapers that at least one-half of the expense of constructing this dam would be taken care of by power sold to the city of Los Angeles, and that is a question which will have to be worked out before the matter comes up on the floor of the House.Professor DURAND. Whether it will be one-half or some other fraction, of course, I could not tell offhand at the present time, but I am sure that the city of Los Angeles is very desirous of entering into some understanding in regard to these matters. Mr. BARBOUR. Mr. Creswell, I understand, intends to discuss that feature of the matter. Mr. RAKER. Possibly I did not make myself plain. Taking your statement as to the demand for power during the next 10 years, and assuming that the Boulder Canyon Dam will not be completed and ready for 10 years, and these private concerns and private individuals proceed to develop their present projects, at the end of 10 years will there be a demand for the power created by the Boulder Canyon Dam, in addition to the developments of the private concerns and private individuals I have spoken of, that will justify the private concerns and private individuals in continuing in business and getting a fair return from the power they sell to the public as well as from the energy to be taken from the Boulder Canyon Dam? Professor DURAND. Yes, sir; I think there will be; I think the demand for power will be so great that within a period of seven or eight years it will absorb the output of the Boulder Canyon project and at the same time let these other projects continue on a reasonable business basis.Mr. RAKER. So that the contemplated construction and completion of the Boulder Canyon Dam, with an ultimate capacity of 600,000 horsepower, will not. in your view, interfere with the general development now contemplated by the private concerns and private individuals for the purpose of building up the country generally? Professor DURAND. No, sir; it will not. I will now pass to the next point which I had in mind. Mr. SINNOTT. Would you prefer to go on and not be interrupted until you complete what you have to say? Professor DURAND. Not at all; I am perfectly willing to be interrupted at any point. I will now say a word with regard to the possible figures at which this power might be sold. Of course, it will be understood that any such estimates are entirely tentative in character, especially so far in advance of the realization of any part of the project; still estimates can be made which will apparently indicate the order of figure at which such power might be sold. I have taken the estimates of the Director of the Reclamation Service as to the cost of the dam, and I have made other estimates with regard to the cost of the power plant and machinery; I am applying fixed charges of 9 1/2 per cent which, I take it, will be sufficient to cover an interest charge of 5 per cent; depreciation on such part of the entire plant as will be subject to depreciation and provision for the retirement of the bonds at 2 1/2 per cent; this, together with a reasonable operating charge, would result in a total annual charge of about $8,000,000. The total annual output of the plant, operated as the equivalent of 600,000 horsepower continuous throughout the year, would be 3,920,000,000 kilowatt hours, and this works out almost exactly to one-fifth of a cent per kilowatt hour-that is to say, this power could apparently be generated and delivered at the plant with a fixed charge, which would insure the interest depreciation where required and retirement of bonds at a charge of about one-fifth of a cent per unit or kilowatt hour. Mr. SINNOTT. It is now 12 o'clock. What is the wish of the committee? Mr. SWING. Professor Durand must leave to-night. Mr. SINNOTT. How much more time do you wish? Professor DURAND. I can finish very promptly and it would be a great privilege to me if I might be permitted to do so. Now, with regard to the cost of this power at distant points. Such cost will depend entirely on how much is taken and how far it is transmitted. I have simply taken an illustrative case. I have assumed one-third of this total amount of power transmitted a distance of 280 miles, which would lay it down substantially in what might be called the center of gravity of the power market of the southern part of the State of California; and under those circumstances, allowing similar charges, etc., it could be laid down at this point in the southern part of the State of California for about

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