20 Second Annual Keport of the 



may be done in advance of the completion of the canal, the quan- 

 tities of power which can be derived from the surplus water under 

 the ordinary traffic conditions, to ascertain how much of this 

 power will be the property of the State and how it can be most 

 advantageously developed. This work, which is still in progress, 

 includes the project for the Capital District, to which reference 

 has heretofore been made. 



There are various localities in which there is a question as to 

 the legal ownership and use of the water-powers created by the 

 construction not only of the Barge canal but also of the original 

 Erie canal. The Commission recommends that it be empowered 

 by law to bring proceedings which will secure the State's title to 

 all such properties, including or affecting water-powers, so that 

 the way may be paved for the utilization of these powers as soon 

 as the construction makes them physically available. 



Answers to Objections to Commission's Plans. 



In the main, the Commission's plan has received the approval 

 of the press, and the people of the State. 



It is charged, however, that the plan is socialistic in that it 

 authorizes the State to embark in business in competition with 

 private capital. This criticism shows a failure to draw a true 

 distinction between a public and a private purpose. 



In these days nearly every municipality is required to furnish 

 lights for its public streets and buildings, and for domestic and 

 commercial purposes. It is a public function, as well as a public 

 duty. In fact, the underlying principle governing this class of 

 service is based upon the common public necessity and welfare. 

 The courts have drawn this distinction, and held that a State or 

 municipality may lawfully engage in any enterprise which is 

 based upon the common good of the people. 



The federal government has applied this policy in connection 

 with the construction of reservoirs for the irrigation of waste and 

 arid lands; also by withholding from private entry, large areas 

 for the purpose of controlling the water powers, with a view of 

 the ultimate development thereof for the benefit of the consumers. 

 Likewise, forest lands have been withheld from private occupation 

 in order to protect the water sheds of navigable streams. Coal 



