Now, the subject which I am going to call to your attention briefly this morning is one of those few matters where my own Department, instead of the Department of the Interior, touches upon the problems of national Conservation. It is also a subject the history of which, I think, exemplifies clearly the importance of the methods to which I have just alluded. I wish to point out to you the attitude of the administration as to the Federal regulation of water power in our navigable rivers.
It is needless to remind such a body as yours of the importance of that sphere of Conservation. All our other present sources of power—such as coal, wood, oil, and the like—are limited, and will be eventually exhausted. Water power alone is permanent. And just as we are coming to learn more and more the value of that permanence, we are simultaneously, through the development of electricity, learning to transmit its energy to greater and greater distances. No other subject occupied more keenly the attention of the past session of Congress, or was more vigorously debated upon the floors of that body.
For many years our national policy, or rather lack of national policy, towards our waterways and our water power, has presented a singular inconsistency. On the other hand, we have been spending hundreds of millions of the taxpayers’ money on the improvement of the navigation of our great inland waterways. On the other, we have been granting away permits for the construction of dams on these same rivers and waterways, which will create water power of incalculable and increasing value; and we have been doing this without exacting for the taxpayers any return or compensation whatever.
I believe it was not until the administration of President Roosevelt that any effort was made to obtain for the public any compensation for the water power which was thus granted away. Mr. Roosevelt demanded in his veto of the James River bill, and in several other messages, that no permits for dams in navigable rivers should be granted without a reservation of proper compensation to the public for the grant thus made. His action was courageous and right. But there were not as yet in the hands of the public sufficient carefully ascertained facts upon which the constitutional power of the Federal Government to take such action could be confidently based. And there was therefore great ground for misapprehension in the public mind of any action attempting to take such a position. A bitter controversy at once arose with those advocates of States’ rights, who contended that the Federal Government had no rights whatever in connection with water power, that under the Constitution its powers were limited solely to navigation, and that water power was an entirely separate and distinct sphere, falling wholly within the jurisdiction of the several States. Such advocates contended that for the Federal Government to exact compensation for a water power right, simply because it was in a position to withhold the permit altogether if it wanted to, was little better than legalized blackmail; and the progress of the reform was stubbornly and for a long time successfully contested.
Even as late as 1906, the General Dam Act, passed by Congress and approved by the President, conveys to the Executive no clear right to exact compensation for these grants. It has remained for Mr. Taft’s administration, following the method of patient investigation and research which I have above mentioned, to collect the facts necessary to solve the problem, and to show from these facts that the jurisdiction of the Federal Government over navigation must necessarily include jurisdiction over water power as an incident of the navigation.
Most of the rivers of this country are long and comparatively shallow. In order to make them commercially navigable, there has become prevalent among engineers a method of improvement known as the “slack water” method or the method of “canalization.” The method consists in building throughout the length of these rivers, a series of dams and locks, by which the river is converted into a succession of deep pools, adequate for commerce of a far more important character than could use the river in its unimproved condition. In fact, many rivers which are not capable in their natural state of being used at all commercially, can by this method be made useful and available for important commerce.
Now, most of the dams thus constructed in a “slack water” improvement, particularly in the rapid portions of the streams, will create water power of commercial value. It is also manifest that if the commercial value of the water power thus created can be realized by the Government and turned into further river improvement, the improvement of navigation on our rivers can be greatly expedited, and the expense to the general taxpayer very much lessened. And, on the contrary, unless this is done, the complete improvement of the river will be just so much delayed and postponed. The water power developed is thus shown to be intimately connected with navigation. It is a by-product of the improvement which can be turned into further improvement. And from the standpoint of constitutional law, it makes no difference whether the dam in question is to be erected by the Federal Government or by a private corporation. If it is a dam which is to assist the navigation of the river as well as to create water power, the power of the Government will be complete. What the Federal Government can constitutionally do itself it can do through an agent.
The corps of army engineers to whom are referred all proposed bills in Congress granting permits for dams for water power have been accordingly, under Mr. Taft’s administration, directed to investigate and answer specifically four questions in every report. They are directed to ascertain in regard to every such bill:
First, is the river on which the dam is to be created a navigable stream subject to being improved, either now or in the future of the country, at the expense of the general taxpayer?
In the second place, they are asked whether the dam which is sought to be constructed will form an essential part of any such improvement.