project in any navigable stream" 108 in the state. The New York State Water-Power Commission was organized on a plan that was almost identical with that of the Federal Power Commission, and it was authorized to coöperate with the national authorities "in an endeavor to harmonize any conflicting claims of the state and the federal government to control over the leasing or licensing of the use of waters for power purposes, to the end that the development of the water-power resources of the state may be accelerated."

99 109

The varied duties which the Federal Power Commission had to perform in its early history, the growing development of state water-power commissions, the vast water-power resources of the country which are yet undetermined, and the various purposes which these resources may serve, all indicate the future development of the commission.

108 Oregon, Session laws, 1921, pp. 642-643. 100 New York, Session laws, 1921, Ch. 579.

Coöperation on the part of various states was doubtless due in a great measure to the efforts of the Water-Power League of America which was chartered under the laws of Delaware "to assist in the revision and codification of existing laws and passage of new laws coördinating federal and state jurisdiction over waters and waterways."

In 1921, they held in Washington a convention of representatives of waterpower states in conjunction with federal officials to evolve a program which would "coördinate the activities in those states with that of the federal government." After projecting their efforts in every state, the League disbanded in 1922.

CHAPTER II

ACTIVITIES

The principal activities of the Federal Power Commission are: The conduct of investigations, the disposal of legal and judicial questions arising in the administration of the Federal WaterPower Act, the issuing of permits and licenses, coöperation with private and public agencies in carrying out the provisions of the act, the furnishing of certified copies of the commission's records, the making of blank forms, and the publication of information. Investigations. Preliminary to all other activities of the Federal Power Commission is that of investigation, and the preliminary investigation pertains to the utilization of the water resources of the region that is to be developed. The prospective waterpower industry may be studied in its relation to other industries and to interstate and foreign commerce. Consideration may be given to the location, capacity, and development costs. The relations of power sites to markets is a vital factor to be determined. When the power from its own dams can be advantageously used by the United States for public purposes, the commission must determine the fair value of the power. The commission requires the licensee to set forth in detail the actual legitimate cost of construction of the project and the price that was paid for the water rights-of-way, and lands, or interest in lands. Consequently, the applicant for a permit must do considerable investigating before he files his application. When he does so, he must make a statement of the nature and amount of data that is available concerning the power site, which may include maps, plans, surveys, explorations, and stream measurements, and a general map showing the nature of the project and its principal features.

When the application is for a license for a major project, it must be accompanied by field notes or a description of metes and bounds of the project and of transmission lines. It must be shown that the requirements of the state in which the project is to be

located with particular respect to the bed and banks, and the right to appropriate the waters for power purposes have been complied with. A statement must be included as to the effect of the project upon the normal flow of the stream and of its relation, if any, to navigation, irrigation, reclamation, flood control, and water supply.

A general map must be submitted to show the principal structures, the entire transmission system, and other features that would aid in presenting a general idea of the project. The status as to ownership must be indicated and the adjacent public lands, if any.

The commission has free access, at all reasonable times, to all projects and to all of the maps, profiles, contracts, reports of engineers, accounts, and all other documents that relate thereto.

The commission must exercise judgment as to whether the proposed project will be best adapted to a general scheme of waterpower development. Some projects are seriously involved with irrigation, navigation, and other water enterprises. Consequently, the commission is required to see to it that careful studies are made of such water sources, and that a careful and just plan of development is outlined. This must be done before any permits or licenses are issued.

The first study of the commission was on the Deschutes River project in Oregon, where practically all of the water of the upper section is available for irrigation. Other impending studies are of the St. Lawrence, Columbia, and Colorado rivers.

Probably no function has been exercised more than the investigation of public lands that have been reserved to the United States as power sites. These lands are considered so as to determine whether they may be opened to entry subject to a reservation of the power rights of the United States.

Another investigation of major importance is the adequate determination of the deterioration of structure and equipment. This is done for the purpose of establishing rates of depreciation and the amount of the depreciation reserves. The national government is particularly concerned with the relation of depreciation reserves to the purchase price of the property, because all such accumulated reserves, under certain conditions, may be deducted from the original cost in case the properties are taken over by the United States upon termination of the licenses.

Besides the general investigations, the commission is required to make special investigations and to report their findings to Congress. These researches include all cases in which a United States dam may be advantageously used for public purposes, including navigation.

When the commission believes that any project should be undertaken by the United States, it must report to Congress the plans and cost estimates. When it is apparent that an applicant for a license cannot construct suitable navigation structures on navigable streams, the commission must report to Congress the cost estimates of the project.

One of the first subjects which engaged the attention of the commission was the Great Falls project, on the Potomac near Washington, D. C. A report was required as to its cost and its economic value, and specific plans which would be necessary to secure an adequate water supply for the District of Columbia.

When legal proceedings are brought for the cancellation of licenses, it is the commission's duty to make engineering and technical investigations pertaining to the case and to act as advisor to the Attorney General.

The commission is required to coöperate with the agencies of both the state and the national governments in these investigations. Whenever the commission requests the several executive departments to furnish information, they are required to furnish it, and to detail to the commission whatever officers may be necessary in the investigations. The commission's investigations may be further enlarged by special act of Congress.

Occasionally Congress may authorize certain states to enter into an agreement as to the apportionment of the water supply of certain rivers. Such an agreement was provided for in the act of August 19, 1921 (42 Stat. L., 171), which authorized the states of Arizona, California, Colorado, New Mexico, Utah, and Wyoming to enter into a compact to provide for an equitable division of the water supply of the Colorado River and its tributary streams.

When acts of this character are passed the Federal Power Commission would naturally await the organization of the state commissions, so as to avoid duplication of work. After the state agencies have been organized and their activities have been outlined, the Federal Power Commission may determine the degree

of its own independent investigations necessary to an intelligent decision as to applications for water rights.

Coöperation with the International Joint Commission has been effected in the investigation of the St. Lawrence River, and boards of engineers of both the United States and Canada have submitted reports to that commission.

Numerous investigations are necessary due to the requirement that the commission publish notices of application for permits. As these notices must be published in a daily or weekly newspaper in the county in which a project is to be situated, at least once each week for eight successive weeks, it is sometimes necessary for the commission to conduct considerable follow-up correspondence to make sure that the publishers have complied with its authorization.

Legal and Judicial Activities. The Federal Power Commission must dispose of many legal questions in the conduct of its activities. This calls for considerable administrative discretion. The administrative problems may be in the nature of interpretations of the original act, or they may pertain to the relation of the commission to other agencies, state or national. Other problems may involve the state and national laws and international treaties in their relation to the operations of the commission.

The commission may act both as an attorney and as a judge in legal proceedings, as the particular case may require. It acts as advisor to the Attorney General in cases for the enforcement of the provisions of a license or for the cancellation of a license.

As a judicial agency the commission is required to hold hearings in connection with the application for any permit or license; or the making of any investigation; or the regulation of rates, service, or securities. It may order testimony to be taken by deposition at any designated place. By subpoena any member of the commission may compel the attendance and testimony of witnesses and the production of documentary evidence from any place in the United States. Should a subpoena be disobeyed, the aid of the proper United States district court may be invoked. The commission is empowered to administer oaths, examine witnesses, and receive evidence, and it may designate others to do so in its behalf.

Legal opinions are prepared by the legal division as the basis. of formal decisions of the commission. They cover, inter alia,