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Show I ;WATD I POl I Amended Measure Up for Speedy Legislation by Con-gress Con-gress Changes in Lan-guage Lan-guage Proposed. ' WASHINGTON, March 2. Changes In the pending administration water power bill to more nearly express tho Hj Intent of tho legislation were recom- mended today to Chairman Sims of the house special water power com-mittee com-mittee by Secretaries Baker, Lane and Houston, who drew the measure. They urged speedy passage of tho bill so as to stabilize tho power industry gen-orally gen-orally and encourage the building of extensions to existing projects. "Water power legislation." said the letter from the secretaries, "should have in view not only tho maintenance of the rights of the public in the na-tional na-tional resources but also the adequate protection of private capital by which such resources arc developed. The bill before you seems to do both. After careful consideration, however, it is believed that certain changes in lan-guago lan-guago could be made which would more clearly express the intent of the proposed legislation. Conditions Should Be Definite. "It is particularly important that tho conditions which affect the dispo-sltlon dispo-sltlon of the property at the termina-tlon termina-tlon of the license should be definite, that uncertainties would be reduced to a minimum. If the properties arc not taken over, the conditions under which a new licenso may be secured should Hj bo entirely clear. If the properties are taken over the price to bo paid should not include alleged values not fl represented by investment or, on the other hand, require needless amortiza-tion amortiza-tion of capital during the period of the license in order to protect the invest -ment. It is tlicrefore believed advis-able advis-able to define in specific language the items which should, or should not enter into the price to be paid." Definition of Net Investment. Tho letter, then suggests Incorporates Incorpora-tes tion in the bill of this definition of net investment, prepared after thorough consideration and after consultation with accounting and banking experts: " 'Net investment' In a project Hj means the actual legitimate original cost thereof as defined and inter-preted inter-preted in tho classification of invest-ment invest-ment in road and equipment of steam roads,, 'issue of 191-1, interstate coin-merce coin-merce commission,' plus similar costs of additions thereto and betterments thereof minus tho sum of the follow-ing follow-ing items properly allocated thereto, if and to the extent that such items have been accumulated during the period of the licenso from earnings in excess of a fair return on such invest-ment: invest-ment: (a)' Unappropriated surplus; (b) aggregate credit balances of cur-rent cur-rent depreciation accounts, and (c) aggregate appropriations of surplus or income held in amortization sinking funds or similar reserves or expended for extensions or betterments.- Tho term cost shall include so far as ap- ipncaDie uio elements thereof prescribed pre-scribed in the legislation but not including in-cluding expenditures from funds obtained ob-tained through donations by states, municipalities, individuals or others." Water Power Urgently Needed. Development of water power is urgentl yneeded, the secretaries wrote, if tho United States is to maintain its proper place in world trade after the war, or even to supply its domestic needs. It also Is necessary in order to reduce the drain on tho nation's coal and petroleum supplies,, particularly particu-larly tho latter. "The sinking fund "which has been necessary in order to produce the materials and equipment needed in the prosecution of tho war," the letter continued, "has placed unprecedented demands upon the electric power industry in-dustry to such an extent in fact that the output of commercial central stations sta-tions has increased more tnan GO per cent since 1914: This increase has been the greatest in the manufacturing districts in tho east, where water power generation is comparatively limited and has taken place, notwithstanding advances in cost of construction and operation. "While the form of the bill which has been presented for your consideration considera-tion is directly concerned with water . , power development only, an adequate solution of this problem will have a favorablo and stabilizing effect upon the whole power Industry. Probably no considerable increase in now water power development can bo expected ex-pected immediately but legislation is urgently needed in order to put existing ex-isting water power developments, which have been made under Inadequate Inade-quate law, into a position of "security which will enable them to make extensions ex-tensions and to meet maturing obligations obliga-tions upon favorable terms." |