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The enclosed resolution reads as follows:

Whereas the Bone-Smith bill for the creation of a Columbia Power Authority, said bill being Senate bill 2430 and 6890, is now before the National Congress, and the provisions of said bill are not only controversial but vitally affect the economy of the States of Oregon and Washington; and

Whereas said bill and the objectives to be accomplished thereby are not essential to the war effort or defense but will result in considerable controversy within the area, and will disturb the economy of local government units therein: Now, therefore, be it

Resolved by the Common Council of the City of Roseburg in regular meeting assembled, That the members of the Oregon delegation in the National Congress be, and hereby are, urged and petitioned to seek the deferment of such legislation, and all other nonessential legislation that would have the effect of disturbing or in any way adversely affecting the people of the State of Oregon, until a public hearing here in Oregon or in the Northwest may be heard on the matter. ROSEBURG, OREG., June 15 1942.

I have a letter from the Oregon Reclamation Congress, dated June 15, 1942, Grants Pass, Oreg., addressed to me, reading as follows:

Hon. HOMER D. ANGELL,

United States Representative,

Washington, D. C.

Re Bone bill (S. 2430 and H. R. 6890).

DEAR REPRESENTATIVE ANGELL: The current hearings upon the above bill now in session and, I am informed, to be concluded June 19, were discussed at a directors' meeting of the Oregon Reclamation Congress held in Portland on June 9. The Oregon Reclamation Congress, as you were doubtless informed, took action opposing the Bone bill at its annual session held in Ontario, Oreg., September 30, 1941. A copy of the resolution there adopted is enclosed herewith for your information.

The board of directors concluded that about all they could do at this time would be to reaffirm that position which was done by a resolution, a copy of which is likewise enclosed herewith.

Similar action was taken by the National Reclamation Association at its meeting in Phoenix, Ariz., October 15 to 17, 1941, by resolution, a copy of which is enclosed herewith.

All these resolutions were predicated upon a careful study of the proposed measure which the State and national bodies determined did not adequately give effect to the principles which should control.

Accordingly it is the belief that the Bone bill should not be passed; that any legislation occasioned by the Grand Coulee installation should be in the form of amendments to the Bonneville Act; and that a comprehensive enactment should not be undertaken until after the war.

It is found that practically all units of local government desire that there be no more placing of special taxation and assessments upon local property until after the war effort with its extraordinary expenditures shall have been successfully concluded.

Should it be possible to extend the hearings beyond June 19, it would be much appreciated if I might be advised, as there are numerous municipal governments within the State, not parties to the reclamation congress, which would like to have expressions in the record.

Very truly yours,

NIEL R. ALLEN, Director; Chairman, Legislative Committee.

There are resolutions attached, which I should like to have inserted in the record.

Senator OVERTON. They may be inserted in the record at this point.

74169-42-pt. 1-49

(The resolutions referred to are as follows:)

RESOLUTION ADOPTED BY THE THIRTY-FIRST OREGON RECLAMATION CONGRESS IN SESSION AT ONTARIO, OREG., SEPTEMBER 30, 1941

Be it resolved by the Oregon Reclamation Congress in annual meeting assembled as follows:

SEC. 1. We approve the theory of a recognized statutory and stable authority for the Columbia River watershed for the development and conservation of the resources of the Pacific Northwest through the widespread generation of electric energy, the development of irrigation, the improvement of navigation, and the promotion of national defense.

SEC. 2. We believe that our position as stated in section 1 hereof can best be accomplished through the operation of the present Bonneville Act together with such amendments as may be necessary to accomplish the purpose, thus giving full recognition to States' boundaries and State rights.

SEC. 3. We deplore the centralization of power under any authority in any person or persons not immediately responsive to the area affected.

SEC. 4. We object to any action which will further remove the control of intrastate nonnavigable water from the particular State in which such water is found. SEC. 5. We protest any action which will take from the State the sole right to contract with a sister State concerning its differences with such State, and subject only to the approval of the Congress.

SEC. 6. We believe that in the event of establishment of an authority it should be democratic in form as an autonomous public corporation with its offices and directors drawn from the area involved.

SEC. 7. We believe that all legislation affecting the waters of the irrigation States should be drafted with a mind to the purpose of and without any limitation upon cr control of the Reclamation Act which recognizes the rights of the States to legislate with respect to the irrigation waters within its borders.

SEC. 8. We support the policy that all net revenues from the use of water in any development of the watershed within the State of Oregon should be allocated to the reduction of the costs of construction of reclamation projects within the State.

SEC. 9. We recommend that all authority bills as the same are generally known be held in abeyance until the passing of the present national defense emergency; that in the event such delay in action is not granted, Congress be urged to hold all Columbia Authority bills in committee, and that regional hearings be held for discussion of the subject, and that therefore a bill be prepared which will express the will of the people in the States of the Pacific Northwest.

SEC. 10. The delegation of the Oregon Reclamation Congress attending the meeting of the National Reclamation Association at Phoenix in 1941 are hereby instructed to support this program at such convention.

SEC. 11. The secretary of the Oregon Reclamation Congress is hereby authorized and directed to mail copies of this resolution to the Oregon delegation in Congress.

RESOLUTION OF BOARD OF DIRECTORS, OREGON RECLAMATION CONGRESS, ADOPTED AT PORTLAND, OREG., JUNE 9, 1942

Be it resolved, That the board of directors of the Oregon Reclamation Congress does hereby reassert the stand previously taken by the Congress-namely, approving the theory of a recognized statutory and stable authority for the Columbia River watershed for the development and conservation of the resources of the Pacific Northwest through the widespread generation of electric energy, the development of irrigation, the improvement of navigation, and the promotion of national defense. But we do hold that these comprehensive purposes are sacrificed in the pending Bone bill in the interests of a bureaucratic authority that is definitely not democratic in form. We insist, therefore, that the pending legislation should not be passed, that further Columbia Valley Authority legislation should be deferred for the duration of the present war, and that the appeal for regional hearings should be heeded before the enactment of any Columbia Valley Authority.

PROCEEDINGS OF TENTH ANNUAL CONVENTION NATIONAL RECLAMATION ASSOCIATION, PHOENIX, ARIZ., OCTOBER 15 to 17, 1941

Resolution No. 17: Opposes regional authorities-favors coordination of existing agencies and extension of Reclamation Act-Defines highest use of water. Whereas there is pending in the Congress of the United States a group of bills identified as "Regional or Valley Authority" legislation, each measure seeking to provide some form of centralized control over one or more of the major drainage basins of the Nation; and

Whereas it is our conviction that this proposed legislation, if valid, would deprive the States of general jurisdiction over and inherent right in the distribution and use of the waters and initiation of water rights within their boundaries; prevent the making of compacts between States governing the use of such waters; drastically interfere with the basic agricultural economy of many States; unnecessarily and unwisely centralize in new Federal agencies, power and duties that can be most efficiently and economically administered by the States; lead to the ultimate elimination of a substantial portion of the assessed valuations of the States, thereby bringing to an end tax revenues which in many instances have been hypothecated well into the future; and thus increase the burden on other taxable property, and tend to create an undesirable and monopolistic type of Federal agency; and

Whereas existing agencies of the Federal Government, including the Bureau of Reclamation and Corps of Army Engineers concerned with the planning, construction, and operation of reclamation, power, flood control, and other projects such as are contemplated under said proposed authority legislation are well organized and fully competent to carry on each in its own sphere such planning, construction, and operation; and

Whereas this association recognizes that the use of water for irrigation is the necessary and fundamental asset of the arid or reclamation States and is unalterably opposed to the creation of any superagency or authority that would assume control or administrative functions contrary to or in conflict with the laws or constitutional provisions of the respective States, or in any manner infringe upon or impair the vested rights acquired by our people in western water resources by appropriation, use, and occupation, including the inherent right to accomplish works for the necessary regulation of all rights already acquired: Now, therefore, be it

Resolved, That the National Reclamation Association commends the effective service of the Bureau of Reclamation and the Corps of Army Engineers and asserts its opposition to the enactment of said regional or valley authority legislation which would destroy their effectiveness and independence, curtail their functions and operations, or tend to transfer them along with their related projects to other Government agencies; be it further

Resolved, That appropriate steps be taken by legislation, or otherwise, for the purpose of coordinating more effectively the activities of existing Federal agencies engaged in investigating, constructing, and operating projects for the development and utilization of water resources, and be it further

Resolved, That this association recommends that the Reclamation Act of 1902, as amended and as supplemented by the Reclamation Act of 1939, be amended to the end that the Bureau of Reclamation may function, in accordance with the provisions of these basic acts, outside of the area to which its activiies are now restricted, and be it further

Resolved, That this association urges that all Federal legislation relating to the control, regulation, and utilization of water in interstate river basins recognize fully the principle of equitable cooperation between Federal and State governments, each operating within its constitutional limitations, and that it recognizes fully that the highest use of water shall be for domestic consumption and for growing crops, that multiple use reclamation projects should be so designed and operated that power production shall at all times be subservient to the needs of irrigation; and that in the allocation of repayable costs the problem of having power bear an appropriate share of these costs and of keeping the water users' obligations within their ability to pay may be met.

I have a letter from the Walla Walla Chamber of Commerce, Walla Walla, Wash., dated June 16, 1942, addressed to me, reading as follows:

DEAR CONGRESSMAN ANGELL: This organization has watched with interest and concern, reports on hearings being conducted by your committee in Washington, D. C., on the Bone-Smith Columbia Valley authority bill.

We are particularly interested in the comment made by several witnesses to the effect that "the people want and are demanding this measure."

To the best of our knowledge, no one in southeastern Washington has had an opportunity to completely study the bill and the several suggested amendments, nor has anyone from this area had an opportunity to appear before your committee.

We believe, in fairness to all viewpoints and more particularly to the people of the Northwest who are most directly concerned by this proposed legislation, that your committee should hold hearings in the Pacific Northwest, where the affected people will have an opportunity to be heard.

We, therefore, respectfully propose that the committee schedule such hearings, at some time convenient to the conduct of the committee's functions, in Spokane, Wash., and Port., Oreg.

Respectfully yours,

WALLA WALLA CHAMBER OF COMMERCE. By GUS NIEMAN, President.

I have a telegram dated June 18, addressed to me, from the city of Grants Pass, Oreg., reading as follows:

Grants Pass City Council adopted resolution opposing Bone bill and urging postponement until after war of all such measures opening channels of additional local assessment. Resolution being mailed.

W. E. MOORE, Mayor.

I have a resolution from the council of the city of Medford, reading as follows:

RESOLUTION No. 479

Whereas the Pacific Northwest power empire bill, being House Resolution 6890 and Senate bill No. 2430, is now before the National Congress, and the provisions of said bill are highly controversial and vitally affect the governmental economy of the States of Oregon and Washington and the various municipal subdivisions thereof; and

Whereas said bill and the objectives thereof are not essential to or connected with the national defense, and will result in the raising and expenditure of vast amounts of money, and will within the States of Oregon and Washington and the various subdivisions thereof cause dissension, controversy, and political unrest: Now, therefore, be it

Resolved by the Council at the City of Medford, Oreg., That it is the judgment of said council that the consideration of such legislation by the National Congress at this time is detrimental to the welfare of the people of the city of Medford and of the State of Oregon; be it further

Resolved, That the Members of the National Senate and House of Representatives from the State of Oregon be, and they are hereby, urged to oppose and encourage the deferment of such legislation and other nonessential legislation disturbing to the people of the State of Oregon until the termination of the present national emergency; be it further

Resolved, That the recorder forward a copy of this resolution to the Members of Congress from the State of Oregon and the chairman of the congressional committee having consideration of said bill.

Passed and adopted and signed by me in authentication thereof this 16th day of June 1942.

Approved :

Attest:

H. S. DEUEL, Mayor.

H. S. DEUEL, Mayor.

M. L. ALFORD, Recorder.

Mr. SMITH. The Committee on Rivers and Harbors has received the following endorsements of the bill, S. 2430, and similar House bills:

Albany (Oreg.) Economic Study Club, resolution.

Blachly-Lane County (Oreg.) Cooperative Electric Association, resolution.

Central Peoples Utility District, Lincoln County, Oreg., resolution.
Coos Electric Cooperative, Inc. (Oreg.), resolution.
Drain (Douglas County, Oreg.) City Council, resolution.
Grays Harbor (Wash.) County Democratic Central Committee,

letter.

Klamath public power committee, Klamath Falls, Oreg., resolution. Northern Wasco County Peoples' Utility District, resolution. Peoples' Utility District of Lincoln, Lane, Douglas, and Coos Counties, Oreg., sponsors of petition containing 24 signatures. Public power committee of Klamath Falls, Oreg., resolution. Port Orford (Oreg.) Chamber of Commerce, resolution. Port Orford (Oreg.) Common Council, resolution. Quillesascut Grange 372, Rice, Wash., letter.

Santiam (Oreg.) Central Farmers Union of Linn County, resolution.

Stevens County (Wash.) Public Ownership League, letter.
Sutherlin (Oreg.) City Council, resolution.

Washington Public Utility Commissioners Association State-wide membership meeting at Seattle, May 24, 1942, telegram.

West Douglas (Oreg.) Electric Cooperative, Inc., resolution. There has also been filed with the committee a copy of the proclamation of the Hydroelectric Commission of Oregon, declaring the formation of the Northern Wasco County Peoples' Utility District.

Senator OVERTON. I would like to have an executive session of the full subcommittee, if the rest of you gentlemen will retire.

(Thereupon at 4:55 p. m., the subcommittee went into executive session, the hearings to be resumed at the call of Senator Overton, chairman.)

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1 Allocation based upon original Federal Power Commission order of allocating 32% percent of joint facilities to power and the balance to navigation.

Division of costs of Grand Coulee and the Columbia Basin project are based upon Bureau of Reclamation estimates of costs of ultimate development. Allocation of these costs to power, navigation and flood control, and irrigation is still pending.

This figure does not include a portion of the cost of waterways-and interest on such cost during construction-which is presently classified on the books and records of the Bureau of Reclamation as "Reservoir, Dams, and Waterways". This cost is included in costs of direct power facilities in this table.

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