after completion of the works, and provide for the amortization of said bonds within fifty years. Contracts respecting water for domestic uses may be for permanent service but subject to rights of prior appropriators.

After the amortization of said bonds charges shall be on such basis as may hereafter be prescribed by the Congress.

General and uniform regulations shall be prescribed by the said Secretary for the awarding of contracts for the sale and delivery of electrical energy, and for renewals under subdivision (b) of this section, and in making such contracts the following shall govern:

(a) No contract for electrical energy shall be of longer duration than fifty years from the date at which such energy is ready for delivery.

(b) The holder of any contract for electrical energy, not in default thereunder, shall be entitled to a renewal thereof upon such terms and conditions as may be authorized or required under the then existing laws and regulations. unless the property of such holder dependent for its usefulness on a continuation of the contract be purchased or acquired and such holder be compensated for damages to its property, used and useful in the transmission and distribution of such electrical energy and not taken, resulting from the termination of the supply.

(c) Contracts for the sale and delivery of electrical energy shall be made with responsible applicants therefor who will pay the price fixed by the said Secretary with a view to meeting the revenue requirements of the project as herein provided for. In case of conflicting applications, if any, such conflicts shall be resolved by the said Secretary, after hearing, with due regard to the public interest, and in conformity with the policy expressed in section 7 of the "Federal water power act" as to conflicting applications for permits and license: Provided, however, That no application of a political subdivision for an allocation of electrical energy shall be denied or another application in conflict therewith be granted on the ground that the bond issue of such political subdivision, necessary to enable the applicant to utilize the electrical energy applied for, has not been authorized or marketed, until after a reasonable opportunity has been given to such applicant to have such bond issue authorized and marketed.

(d) Any agency receiving a contract for electrical energy equivalent to one hundred thousand firm horsepower, or more, may, when deemed feasible by the said Secretary, from enginering and economic consideration and under general regulations prescribed by him, be required to permit other similar agencies having contracts hereunder for less than the equivalent of twentyfive thousand firm horsepower to participate in the benefits and use of any main transmission line constructed by the former for carrying such energy, upon payment by such other agencies of a reasonable share of the cost of construction, operation, and maintenance thereof.

The use is hereby authorized of such public and reserved lands of the United States as the said Secretary shall determine to be necessary or convenient for the construction, operation, and maintenance of main transmission lines to transmit said electrical energy.

SEC. 6. That the dam and reservoir provided for by section 1 hereof shall be used: First, for river regulation and flood control; second, for irrigation and domestic uses; and, third, for power. The title to said dam, reservoir, plant, and incidental works shall forever remain in the United States and the United States shall always control, manage, and operate the same: Provided, however, That the said Secretary may, in his discretion, enter into contracts of lease of a unit or units of said plant, with right to generate electrical energy, or, alternatively, to enter into contracts of lease for the use of water for the generation of electrical energy, in either of which events the provisions of section 5 of this act relating to revenue, term, renewals, determination of conflicting applications, and joint use of transmission lines under contracts for the sale of electrical energy, shall apply.

SEC. 7. That the said Secretary may, in his discretion, when said bonds shall have been amortized, transfer the title to said canal and appurtenance structures to the districts or other agencies in the United States having a beneficial interest therein in proportion to their respective capital investments. The said districts or other agencies shall have the privilege at any time of utilizing such power possibilities as may exist upon said canal, in proportion to their respective contributions or obligations toward the capital cost of said canal and appurtenant structures from and including the diversion works to the point where each respective power plant may be located. The net proceeds

from any power development on said canal shall be paid into said Colorado River dam fund, and credited to said districts or other agencies on their said contracts, in proportion to their rights to develop power, until the districts or other agencies using said canal shall have paid thereby and under any contract or otherwise an amount of money equivalent to the operation and maintenance expense and cost of construction thereof.

SEC. 8. (a) That the United States, in managing and operating the dam, canals, and other works herein authorized, including the delivery and use of water for the generation of power, irrigation, or other uses, shall observe and be subject to and controlled by the Colorado River compact as signed at Santa Fe, New Mexico, on November 24, 1922, and particularly described in section 12 herein.

(b) Also the rights of the United States in or to waters of the Colorado River howsoever acquired, as well as the rights hereafter arising of those claiming under the United States, shall be subject to and controlled by said compact.

(c) Also all patents, grants, contracts, concessions, leases, permits, licenses, rights of way, or other privileges from the United States or under its authority, necessary or convenient for the use of waters of the Colorado River, or for the generation or transmission of electrical energy generated by means of the waters of said river, shall be upon the express condition and with the express .covenant that the rights of the recipients or holders thereof to waters of the river, for the use of which the same is necessary, convenient, or incidental, shall likewise be subject to and controlled by said compact.

(d) The conditions and covenants referred to herein shall be deemed to run with the land and water right, and shall attach as a matter of law, whether set out or referred to in the instrument evidencing any such patent, grant, contract, concession, lease, permit, license, right of way, or other privilege from the United States or under its authority, or not, and shall be deemed to be for the benefit of and be available to the States of Arizona, California, Colorado, Nevada, New Mexico, Utah, and Wyoming, and the users of water thereunder, by way of defense or otherwise, in any litigation respecting the waters of the Colorado River.

SEC. 9. That all lands of the United States found by the Secretary of the Interior to be practicable of irrigation and reclamation by the irrigation works authorized herein shall be withdrawn from public entry. Thereafter, at the direction of the Secretary of the Interior, such lands shall be opened for entry, in tracts varying in size, but not exceeding one hundred and sixty acres, as may be determined by the Secretary of the Interior, in accordance with the provisions of the reclamation law, and any such entryman shall pay an equitable share in accordance with the benefits received, as determined by the said Secretary, of the construction cost of said canal and appurtenant structures; said payments to be made in such installments and at such times as may be specified by the Secretary of the Interior, in accordance with the provisions of the said reclamation law, and shall constitute revenue from said project and be covered into the said subfund herein provided for: Provided, That all persons who have served in the United States Army, Navy, or Marine Corps during the war with Germany, the war with Spain, or in the suppression of the insurrection in the Philippines, and who have been honorably separated or discharged therefrom or placed in the Regular Army or Navy Reserve, shall have the exclusive preference right for a period of three months to enter said lands, subject, however, to the provisions of subsection c of section 4, act of December 5, 1924 (Forty-third Statutes at Large, page 702); and also, so far as practicable, preference shall be given to said persons in all construction work authorized by this act: Provided further, That in the event such an entry shall be relinquished at any time prior to actual residence upon the land by the entryman for not less than one year, lands so relinquished shall not be subject to entry for a period of sixty days after the filing and notation of the relinquishment in the local land office, and after the expiration of said sixtyday period such lands shall be open to entry, subject to the preference in this section provided.

SEC. 10. That nothing in this act shall be construed as modifying in any manner the existing contract, dated October 23, 1918, between the United States and the Imperial irrigation district, providing for a connection with Laguna Dam; but the Secretary of the Interior is authorized to modify the said contract, with the consent of the said district, and also to enter into a contract or contracts with the said district or other districts, persons, or agen

cies for the construction, in accordance with this act, of said canal and appurtenant structures, and also for the operation and maintenance thereof, with the consent of the other users.

SEC. 11. "Political subdivision" or "political subdivisions" as used in this act shall be understood to include any State, irrigation, or other district, municipality, or other governmental organization.

"Reclamation law" as used in this act shall be understood to mean that certain act of the Congress of the United States approved June 17, 1902, entitled "An act appropriating the receipts from the sale and disposal of public land in certain States and Territories to the construction of irrigation works for the reclamation of arid lands," and the acts amendatory thereof and supplemental thereto.

"Maintenance as used herein shall be deemed to include in each instance provision for a fund sufficient to keep the works in good operating condition during the period of amortization of construction cost.

SEC. 12. The Colorado River compact signed by the commissioners of the States of Arizona, California, Colorado, Nevada, New Mexico, Utah, and Wyoming, and by Herbert Hoover, as the representative of the United States of America, at Santa Fe, New Mexico, November 24, 1922, pursuant to act of Congress approved August 19, 1921, entitled "An act to permit a compact or agreement between the States of Arizona, California, Colorado, Nevada, New Mexico, Utah, and Wyoming respecting the disposition and apportionment of the waters of the Colorado River, and for other purposes," is hereby approved by the Congress of the United States, and the provisions of the first paragraph of article 11 of the said Colorado River compact, making said compact binding and obligatory when it shall have been approved by the legislature of each of the signatory States are hereby waived, and this approval shall become effective when by act or resolution of their respective legislatures at least six of the signatory States shall have approved or may hereafter approve said compact and shall consent to such waiver.

SEC. 13. This act shall be deemed a supplement to the reclamation law, which said reclamation law shall govern the construction, operation, and management of the works herein authorized, except as otherwise herein provided. SEC. 14. That the short title of this act shall be "Boulder Canyon project act.” Mr. HAYDEN. Mr. Chairman, I should like to submit some observations. I first desire to comment upon the report on the Swing bill by the Secretary of the Interior, with particular reference to this sentence which appears on page 13 of the press release of his letter to you of January 18:

I suggest for consideration, amendment to the effect that the benefits to be derived from this development shall be available only to those States or the citizens of those States which have ratified the compact.

I have great respect for Secretary Work. It is his ambition to make the Interior Department a great constructive arm of the Government for the development of the West. He is a man of high purpose and splendid courage. In seeking to accomplish good results he expects to be criticised, but is not deterred from going ahead by any fear of what may be said about him.

Like every other man who accomplishes anything the Secretary is liable to make mistakes. I have seen him make more than one, but he is brave enough to admit that he may have been wrong and wise enough to rectify the error. Knowing Doctor Work as I do. I am certain that his suggestion that any State which has not ratified the Colorado River compact shall be denied the benefits of the proposed development was not based upon mature consideration. Its position in the text of his letter shows that it was a mere afterthought, or as the Mexicans say, a "pelon," thrown in for good measure. It is a proposal upon which, after reflection, I am sure he will not insist.

I observe that those who redrafted the Swing bill to conform to the recommendations of the Secretary of the Interior have not accepted that bit of gratuitous advice. The bill in its latest form, however, is based upon the fallacious idea that Arizona can be absolutely ignored; that my State has no rights which must be recognized.

In all candor I ask each and every one of the gentlemen around this table to take home to himself the situation thus created. Would any Member of Congress remain content to see such discrimination practiced against his State and its citizens? The people of Arizona have the independence of character possessed by all true Americans. We are your own flesh and blood and will be just as quick to resent any attempt at coercion as you yourselves would be. I have no fear that Congress will adopt such a proposal, but I say to you with earnestness and sincerity that, if enacted into law, it will be strenuously resisted by the people of Arizona by any and

every means.

Either Arizona has rights in and to the Colorado River or she has no rights. The Swing bill is obviously predicated upon the theory that Arizona has none. That may be true, but there are only nine men in the world who have the authority to say that it is true and they have not spoken. No number of men in the President's Cabinet, or of this committee, or in Congress, can be sure that such an assertion is true, nor will Arizona accept it as the truth until the final argument in opposition has been presented to the nine who constitute the court of last resort, the Supreme Court of the United States.

Those who seek delay can find it in such a lawsuit for they may be sure that the people of Arizona will exhaust every resource before submitting to an act of Congress passed under the assumption that they have no rights which need to be respected.

Mr. SWING. What is it that you suggest be added to this bill? Mr. HAYDEN. I shall discuss that question at the proper time. Just as certain as this legislation is enacted, there will be an interstate lawsuit. There is no way of escaping that consequence. One does not have to be a very profound student to recognize what will be the principal issues to be determined. The question of the ownership of the bed and bank of the Colorado River at the dam site named in this bill will surely have to be considered by the Supreme Court. I have never laid great stress upon the navigability of the Colorado River, but that stream has been declared to be navigable by an international treaty which is recognized to be the highest kind of law. It is also true that at one time steamboats carrying passengers and freight regularly passed up and down Black Canyon, where this bill says a dam is to be built. Iron rings are there in rocks now which were once used to aid the boats in going up to old Callville.

If the Colorado River is navigable, in the customary sense of that term, then the State of Arizona owns the bed within its boundaries and can not be either lightly or wantonly deprived of all the benefits which inure to the State by reason thereof. Certainly Arizona can not be expected to remain content and silent when it is proposed

to build a dam, one-half of which will be located on property belonging to the State, not only without its approval but by openly and completely disregarding its ownership.

Then there is another question which to my mind is of much greater importance that will also have to be decided by the Supreme Court; the question of the jurisdiction of the States over appropriations of water within their limits. I doubt very much whether Representatives in Congress from the arid West, where the doctrine of riparian rights does not and has never prevailed, will be in any hurry to accept the theory of this bill that Congress can make appropriations of water; that Congress, without the consent of the State, can take water for beneficial use for power or irrigation or other purposes. Mr. LEATHERWOOD. Without the consent of the State?

Mr. HAYDEN. Not only without the consent of the State but utterly ignoring the State, yet such are the terms of this bill. It represents the first attempt to pass legislation by Congress whereby the Federal Government is assumed to have that power.

Members of Congress from the West have always contended that the United States has no jurisdiction over appropriations of water for irrigation, power, or other uses. There is no law upon the Federal statute books asserting such a right, and Congress has in many instances declined to interfere with the laws of any State relating to the appropriation, use, or distribution of water. Two good examples of an acknowledgement that the States, and the States alone, have control over appropriations of water are to be found in the reclamation act and the Federal water power act.

Jurisdiction over appropriations of the waters of streams is one of the highest attributes of sovereignty in the States of the arid region. Water to them means life. Their entire future is bound up in its conservation and beneficial use. To strip them of their exclusive control over it by a transfer of authority to the Federal Government would leave the States of the West a mere aggregation of dependencies subject to the whims of Congress controlled by a majority membership from States where the value of water for irrigation is little known and slightly appreciated.

I am sure that the serious minded Congressmen from the West will not fail to realize that the passage of a law which denies the right of Arizona to control appropriations of water within her borders would be but the first step toward the nationalization of every stream where the Federal Government may desire to take charge. Self protection will compel every one who is jealous of the rights of his State to oppose the adoption of so far reaching and such an evil precedent. After the Colorado River is nationalized, what river in the West will next be arbitrarily taken over from the States?

Mr. WINTERS. Has not the Supreme Court spoken on the question of the right of the States to regulate appropriations of water and the necessity of obtaining the State's consent?

Mr. HAYDEN. That issue has not been definitely determined by the Supreme Court. In the case of Wyoming v. Colorado, briefs were filed by authority of the Attorney General of the United States admitting that Congress has for many years affirmatively consented to the adoption of the doctrine of appropriation throughout the West, but contending that at any time the Federal Government