TAX LANDS AND FORESTRY. 15 



until the State lands are at least temporarily reserved from sale, because 

 I know that the result would be that they would at once be picked up. 

 I know that land agents have made trips along many of our principal 

 rivers and blocked out the flood plains and secured the acreage thereof." 



The state of things indicated by Mr. Lane's letter is the natural re- 

 sult of the increase of utility and value of water power within very 

 recent years by reason of the progress made in ability to transmit power 

 by electricity for use at different points. This has made all land within 

 the flowage areas of streams having the necessary fall for development 

 of power, a valuable asset, and it must be expected that it will be quickly 

 picked up by speculators, to be turned over to more permanent in- 

 vestors. 



It is not our purpose to recommend any change in the policy evi- 

 denced by that clause in the Constitution which forbids the State from 

 undertaking works of internal improvement; nor is it the thought of 

 the Commission that ownership of land under discussion other than 

 that in the State reserves, should be retained in the State permanently. 

 It is desirable that this land should be made available for any use that 

 it may be suited for, subject only to such provisions as will retain in 

 the State the power that ownership of the land would enable it to assert 

 over the development, operation and distribution of the water. All the 

 incidents of ownership consistent with the State's retention of control 

 in manner suggested should be secured to the State's grantee. One sec- 

 tion of the draft of a proposed statute, submitted as a part of this re- 

 port, seems appropriate for the attainment of the purpose in view, viz. : 



Section 12. Every grant, conveyance or transfer of the title of the 

 State to, and every contract made by it affecting, any land within the 

 operation and effect of Section 1 which lies upon, includes, or is bounded 

 or crossed by, any lake, river or stream, or which lies within the flowage 

 area thereof hereinafter mentioned, shall be subject to the following 

 stipulation binding upon the land and upon all grantees and assigns 

 thereof as follows, to-wit: 



All such parts of the land included in such grant, conveyance, trans- 

 fer or contract as will be flowed by any present or future work, dam, 

 or operation for impounding, diverting or controlling the waters of any 

 lake, river or stream in order to develop water power, or to furnish 

 water supply, or to regulate stream flow, or for any other purpose, are 

 conveyed by the State only to the extent that the grantee and his suc- 

 cessors in title may use, possess and enjoy the same, except for the 

 purpose of flowage as aforesaid; the right of flowage being reserved to 

 the State subject however to the agreement that such right of flowage 

 shall not be used by the State, or conveyed or granted to any person, 

 except either with the consent of said grantee of the land or his suc- 

 cessor in title then owning the same, or upon condition that compensa- 

 tion by the grantee of such easement or reserved right shall be made to 

 the said owner of said land in the same way as though he were the 

 absolute owner thereof without Restriction or reserved right aforesaid; 

 and provided further, that any grant or conveyance by the State of the 

 easement or right of flowage shall be held and deemed to be subject to 

 the reservation and agreement that the same is, and shall forever re- 

 main, subject to such rules, regulations and requirements as the State 



