194 MULTIPLE PURPOSE RIVER DEVELOPMENT 



It appears, therefore, that provisions of Sections 1,3,10, and 11 

 of Public Law 436 would be consistent with compensating Alabama 

 Power Company for the flood control benefits it will provide, and 

 thus make possible the sale of power "at the lowest possible cost." 

 On the other hand, F. C. Weiss, vice president in the company, 

 testifying before the Committee on Public Works, asserted that 

 flood control would be provided "at substantial cost," and without 

 "any burden being imposed upon the Federal Treasury." ^^ The 

 latter part of the statement makes for a somewhat ambiguous 

 position and reflects some evidence which suggests that Ala- 

 bama Power Company seeks no compensation from the federal 

 government. 



In keeping with the latter interpretation is the testimony of 

 Thomas W. Martin, chairman of the board of Alabama Power 

 Company. The following colloquy between Congressman Jones of 

 the Subcommittee and Mr. Martin gives the flavor of the latter's 

 views on the matter: 



Mr. Jones: Is that section [Section 11] inserted for the purpose 

 of leaving the door open for the power company subsequently to 

 come to the Congress and say, "We either are going to have to 

 raise the rates under the general law as it now exists, or we are 

 going to have to ask the Congress to compensate us for the flood- 

 control work that is done on this river?" 



Mr. Martin: I am glad you asked the question, Mr. Jones. 

 Frankly, we are not the authors of that section. 



Mr. Jones: Is the Corps of Engineers the author? 



Mr. Martin: Perhaps the Corps of Engineers, or perhaps Sena- 

 tor Hill. I am not clear myself. We did not propose that section. 

 We say to you again: We will carry out the financial burden 

 which is put at $100 million or more. We will meet our financial 

 burden. We are not asking the Congress through the device of 

 this section for an appropriation, Mr. Jones. 



Mr. Jones: As I understand it, under existing law, . . . that in 

 establishing a rate before the Federal Power Commission, if, by 

 the construction of these dams you were to make a flood control 

 contribution, then that contribution that you made to flood 

 control would, be reflected in the rates of the electricity which 

 you sell. 



Mr. Martin: Of course, the investment of our company goes 

 into the ratemaking base.^^ 



^ Coosa River Power Development, Hearings before the Committee on Public 

 Works, op. cit., pp. 46, 48, 51. 

 ""Ibid., p. 39. 



