10 Second Annual Report of the 



is a just policy, regards that former policy as only a comparatively 

 minor feature of a much broader one. Under the present policy 

 brought forward by the Commission, the unused waters of the 

 State are to be developed both by storage of flood waters and con- 

 struction of plants at new sites, and the resulting energy trans- 

 mitted throughout the State. Physically, the project contemplates 

 the ultimate construction of a grand system of electric trans- 

 mission covering the State by main trunk lines, with branches 

 radiating to all points, from sub-stations located at convenient 

 places on the main trunk system. Power is to be supplied to this 

 system primarily by the utilization of the undeveloped water 

 powers of the State. 



The various municipalities of the State are to be furnished this 

 power under contract with the State at a price sufficient to cover 

 costs of production and transmission, including interest and sink- 

 ing fund charges on the bonds of the State issued for the construc- 

 tion costs. The power is to be used by the municipalities for all 

 municipal purposes, such as lighting their streets and public build- 

 ings, pumping city water supplies, and for supplying light, heat 

 and power at cost to all the inhabitants. With this brief description 

 of the proposed plan, we pass to a consideration of the reasons why 

 it is advocated by the Commission. 



Legal Advantages. 



As has been repeatedly pointed out heretofore all procedure or 

 proposed procedure for storing the flood waters of our streams has 

 had to rest upon a palpable subterfuge, viz., that the proposed 

 reservoirs are being constructed for the benefit of public health and 

 safety, whereas the main purpose is increasing the power at sites 

 below. In all the large projects it will be necessary to exercise 

 the power of eminent domain, and the subterfuge was necessary 

 in order to escape the implied provision of our fundamental law 

 prohibiting the taking of private property for a private purpose. 



Various other expedients for practical evasion of this constitu- 

 tional inhibition have been proposed. The Commission holds that 

 the only way to make the purpose a public purpose is to make the 

 benefits accessible to the entire public. The development of power 

 by the State at the storage dams or at points on the stream below, 



