Mr. GARNER. And then it resolves itself into a question of whether it would be proper policy for the Government to revoke a permit and grant it to someone else?

Maj. LADUE. That is as I understand the matter.

Mr. GARNER. There is one company to which a permit was granted five years ago that has never utilized this permit as to selling its power, but another company has been importing it into the United States.

Maj. LADUE. There is one which is not now utilizing its permit. Mr. COOPER. What company is that?

Mr. LADUE. The Electrical Development Co.

Mr. COOPER. Where did it get its charter?

Maj. LADUE. The Electrical Development Co. is a Canadian corporation which develops power. Of course, the permit is not granted to the Electrical Development Co., but to its associates on this side. Mr. COOPER. Who are they?

Maj. LADUE. The Cataract Power & Conduit Co. of Niagara Falls and to the Niagara Falls Electrical Transmission Co., and to such other distributing agents as the Electrical Development Co. may designate.

Mr. HARRISON. Their charter was granted in 1903?

Maj. LADUE. Investigations before the permit was given showed that the company on the American side had gone to some expense to prepare its plant for the utilization of the power, and that at that time they were as much entitled to it as anybody else. Why they have not utilized it I do not know.

Mr. GARNER. Major, do you know the officers and members of that company? Have you a record of them?

Maj. LADUE. We can certainly get it if we have not got it.
Mr. KENDALL. Gen. Greene, do you know who they are?

Gen. GREENE. The permit gives the right to the Electrical Development Co. and to all the companies to whom they see fit to sell it. That is in the reports of the War Department, is it not? The permit reads as follows:

AUGUST 17, 1907.

To the Niagara Falls Electrical Transmission Co., and to the Cataract Power & Conduit Co., and to such other distributing agents of companies in the United States as the Electrical Development Co. of Ontario (Ltd.) may designate to receive from the said Electrical Development Co. of Ontario (Ltd.) at the international boundary line and to transmit into the United States 46,000 electrical horsepower, provided that a part of such electrical power may be received by the Cataract Power & Transmission Co., at the international boundary over the power transmission lines of the Canadian Niagara Power Co., and that the remaining part of such electrical power may be transmitted into the United States over transmission circuits thereafter to be approved by the Chief of Engineers, and may be received by the said Niagara Falls Electrical Transmission Co., or such distributing agents or companies in the United States as the said The Electrical Development Co. of Ontario (Ltd.) may designate.

Mr. GARNER. I believe you have purchased some power from this company that had the permit?

Gen. GREENE. Never; except one or two hours in the winter when our manufacturing load was a little more than our powerhouse could take care of.

Mr. GARNER. Who did purchase this power? Do you know?

Gen. GREENE. Well, it is common report that the Cataract Power & Conduit Co., of Buffalo, is purchasing power from them. That

contract was made public in reports of the Canadian park commissioners. It ran, as I recall, for three years, from 1907 to 1910, and was for one unit or such part of it as the Cataract Power & Conduit Co., of Buffalo, might wish to use, the maximum power of the unit. being about 12,000 horsepower.

Mr. GARNER. Do you remember anything, General, about what price the contract for that power called for? You stated that the contract was made public?

Gen. GREENE. I was not strictly accurate. A reference to the contract was made public. I never saw the price and I do not know what it was.

Mr. GARNER. You do not know where we could get information as to the price they paid for this power?

Gen. GREENE. I do not know except from the officers of the Cataract Power & Conduit Co., or the officers of the Buffalo Electrical Development Co.

Mr. GARNER. I was speaking about any one in this city?

Geu. GREENE. I do not think the War Department has it.

You asked me, I think, as to the officers. The report further says: The Electrical Development Co., under a contract which expired June 20, 1911, formerly transmitted power to Terminal B station at Buffalo in parallel with the Canadian Niagara Power Co. The load was continuous, being the peaks for short periods of the day only. These peaks reached a maximum of 9,000 to 10,000 horsepower. Since the expiration of the contract no power has been exported from the plant of the Electrical Development Co.

No contract has been made with the Electrical Development Co. since the expiration of this contract.

You asked me as to officers of this company; they live in Toronto, Canada, and are as follows: Mr. Robert J. Fleming is the general manager; I think Sir William McKenzie is president, but am not perfectly sure; he is the principal owner.

Mr. GOODWIN. It is ascertained that after a life of 50 years one of these leases had expired and was renewed for 999 years; now is that correct?

Gen. GREENE. I think it is a little in error, sir. I think it said. that the charter of a New York corporation which originally ran for 50 years had been extended to 999 years. Was not that it?

Mr. GOODWIN. Well, possibly it was in that form. Well, now, is that charter irrevocable if it should be ascertained, if we could ascertain the quantity of water that would flow from the cataract? Gen. GREENE. I do not know as to the company; I can tell you as to the charters of the companies I am connected with. The contracts with the Park Commissioners, including the right to occupy their land and use the water going past their lands, in which they are riparian owners, run for 50 years beginning with 1900, together with three renewals of 20 years each, at a price to be agreed upon in each case, or settled by arbitration. The price for the first fiscal year is fixed.

Mr. GOODWIN. It seems to me it would be contrary to public policy to make a renewal of such extended length as practically 1,000 years. Gen. GREENE. That is the charter, the right to do business; but the contract I speak of, or the right to take the water on the Canadian side, is 50 years, with the privilege of three renewals of 20 years each.

28305-12- -14

Mr. GOODWIN. What is it on the American side?

Gen. GREENE. On the American side the charter is perpetual, but they claim the right of ownership in the riparian rights to the waters of Niagara Falls, just the same as in the ownership of their land. Mr. BROWN. That is covered under the New York laws.

The CHAIRMAN. You can proceed, Maj. Ladue.

Maj. LADUE. I have nothing more to say, unless the committee desires to ask me any questions.

Mr. GARNER. Major, have we any way, if I understand Gen. Greene's and your statements, of ascertaining the compensation that this electrical company that had the permit to import the power, received for transferring this permit to some other company?

Maj. LADUE. I think we have no record in the War Department of any such matters. I do not understand that they transferred their permit.

Mr. GARNER. Well, if I understand it, they did not produce power and import it, but they sold power.

Gen. GREENE. Yes; they produced the power and sold it to the Cataract Power & Conduit Co., of Buffalo, as this long contract I gave you gave them the right to do; but what price they got I do not know. I suppose you can summon the officers of the Cataract Power & Conduit Co. here and they will tell you.

Mr. GARNER. I was trying to get at what profit this company that had the permit to import the power into the United States and did not utilize that permit, made out of the permit. That is what I wanted to get at, if possible.

Maj. LADUE. I am unable to give any information on that subject. I do not think we have any source of such information.

Mr. COOPER. When do you expect that report, House Report No. 246, to be printed?

Maj. LADUE. We heard from the Government Printing Office that it was likely to be out this afternoon.

The CHAIRMAN. I called up the Government Printing Office and the Public Printer told me they were rushing the work. We will have it here before the hearings close.

Mr. HARRISON. I ask for information. Has the report of the International Waterways Commission been made a part of this record? The CHAIRMAN. It has not been.

Mr. HARRISON. It appears to me it ought to be made a part of this record. I have read that report and it is very interesting. I find it in the hearings before the Committee on Rivers and Harbors in 1906. The CHAIRMAN. Have you got it, Mr. Harrison?

Mr. HARRISON. Yes; it is in this book here.

The CHAIRMAN. How many pages?

Mr. HARRISON. It is not very long. About eight pages.

The CHAIRMAN. If there is no objection, that report can be incorporated in the record of these proceedings, and it is so ordered.

[Senate Document No. 242, Fifty-ninth Congress, first session.]

REPORT OF THE AMERICAN MEMBERS OF THE INTERNATIONAL WATERWAYS COMMISSION, WITH LETTERS FROM THE SECRETARY OF STATE AND THE SECRETARY OF WAR INCLUDING MEMORANDA REGARDING THE PRESERVATION OF NIAGARA FALLS.

To the Senate and House of Representatives:

I submit to you herewith the report of the American members of the International Waterways Commission regarding the preservation of Niagara Falls. I also submit to you certain letters from the Secretary of State and the Secretary of War, including memoranda showing what has been attempted by the Department of State in the effort to secure the preservation of the falls by treaty. I earnestly recommend that Congress enact into law the suggestions of the American members of the International Waterways Commission for the preservation of Niagara Falls, without waiting for the negotiation of a treaty. The law can be put in such form that it will lapse, say in three years, provided that during that time no international agreement has been reached. But in any event I hope that this Nation will make it evident that it is doing all in its power to preserve the great scenic wonder, the existence of which, unharmed, should be a matter of pride to every dweller on this continent.

THE WHITE HOUSE, March 27, 1906.

THEODORE ROOSEVELT.

DEPARTMENT OF STATE,
Washington, March 24, 1906.

DEAR MR. PRESIDENT: I return the letter of the Secretary of War with the report of the American members of the International Waterways Commission, regarding the preservation of Niagara Falls.

I think the legislation recommended by the commission would be very useful. Faithfully, yours,

ELIHU ROOT.

WAR DEPARTMENT, Washington, March 20, 1906.

MY DEAR MR. PRESIDENT: I herewith transmit, for submission by you to Congress, the report of the American members of the International Waterways Commission, made by them in accordance with the joint resolution approved March 15, 1906, and set out in their report. The recommendations of the commission of legislation necessary and desirable to prevent the further depletion of water flowing over the Niagara Falls suggests the question whether such legislation is within the limitations of the legislative power of Congress, when applied to nonnavigable parts of a stream which is within the borders of a State and which is only partly navigable, if the use of the water to be inhibited does not affect navigation in the navigable part of the stream below. It would seem that the treaty power exercised by the President and Senate with respect to a stream which forms the boundary between this country and another would be subject to less limitation in this regard than the legislative power of Congress, and therefore that it might be more advisable to effect the result sought by Congress through a treaty than through a statute.

Very respectfully,

The PRESIDENT.

W. H. TAFT, Secretary of War.

REPORT OF THE AMERICAN MEMBERS OF THE INTERNATIONAL WATERWAYS COMMISSION REGARDING THE PRESERVATION OF NIAGARA FALLS.

INTERNATIONAL WATERWAYS COMMISSION,
OFFICE OF CHAIRMAN AMERICAN SECTION,
Washington, D. C., March 19, 1906.

SIR: 1. The American members of the International Waterways Commission have the honor to submit for transmittal to Congress this report, in compliance with the following joint resolution approved March 15, 1906:

"Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the members representing the United

States upon the International Commission created by section four of the river and harbor act of June thirteenth, nineteen hundred and two, be requested to report to Congress at an early day what action is in their judgment necessary and desirable to prevent the further depletion of water flowing over Niagara Falls; and the said members are also requested and directed to exert, in conjunction with the members of said commission representing the Dominion of Canada, if practicable, all possible efforts for the preservation of the said Niagara Falls in their natural condition."

2. The surplus waters of Lake Erie are discharged through the Niagara River into Lake Ontario, the mean level of Lake Erie being 572.86 feet and that of Lake Ontario being 246.61 feet above the sea. Leaving Lake Erie at Buffalo, the river is navigable and flows with a moderate slope to a short distance below Welland River, or Chippewa Creek, about 19 miles, in which distance it has a fall of about 14 feet. The slope here is suddenly increased and the river ceases to be navigable. In the next half mile it has a fall of about 50 feet, forming the rapids above the falls. It is divided by Goat Island into two arms of unequal size, that on the Canadian side carrying about seven times the volume of water carried by that on the American side. At the foot of Goat Island the waters of both arms plunge over a vertical precipice, constituting Niagara Falls proper, that on the Canadian side being usually known as the Horseshoe Fall, and that on the American side as the American Fall. The height of the Horseshoe Fall is about 161 feet and that of the American Fall 165 feet. Immediately below the falls the river is again navigable for a short distance, and then assumes the character of rapids as far as Lewiston, 7 miles from Lake Ontario, where it again becomes navigable and remains so until it enters the lake.

3. The volume of water flowing varies with the level of Lake Erie, which level is subject to variations of several feet, depending upon the rainfall, barometric pressure, and direction and force of the wind. At the mean level of the lake (elevation 572.86) the volume of discharge is 222,400 cubic feet per second. At a very low stage (elevation 571) the volume is 180,800. (See Annual Report, Chief of Engineers, U. S. Army, for 1900, p. 5361.) For short periods in midwinter, or with prolonged adverse winds, it has sometimes been even less.

4. It is the great volume of water in the falls themselves and in the rapids which makes the place unique. The tremendous display of power in wild turbulence fascinates the mind, and gives to the question of Niagara's preservation a national interest.

5. The local authorities on both sides of the river have recognized their responsibilities in this matter, but have taken somewhat different views as to what these responsibilities are. As long ago as 1883 the State of New York provided for the acquisition of the lands in that State adjoining the Falls, with a view to creating a public park, and in 1885 it declared that these lands "shall forever be reserved by the State for the purpose of restoring the scenery of the Falls of Niagara to and preserving it in its natural condition; they shall forever be kept open and free of access to all mankind without fee, charge, or expense to any person for entering upon or passing to or over any part thereof." A commission of five was created to carry out the purposes of the act. The State reservation now includes 412 acres, part of which is under water, and an annual appropriation of some $25,000 is made for its care and maintenance. The commission has no jurisdiction beyond the limits of the reservation, but it has never throughout its existence failed to protest and bring all its influence to bear against the depletion of the falls by the abstraction of water above and beyond the limits of the reservation. Nevertheless, the State legislature has granted numerous franchises for the diversion of water, as will appear further on.

6. Soon after the creation of the New York State reservation a public park was created on the Canadian side, called the Queen Victoria Niagara Falls Park, and was placed under the control of five commissioners. This park now extends practically the whole length of the Niagara River from Lake Erie to Lake Ontario, and embraces an area of about 734 acres. By an act of the Ontario Legislature (62 Victoria, chap. 11), it was enacted that "The said commissioners, with the approval of the lieutenant governor in council, may enter into an agreement or agreements with any person or persons, company or companies, to take water from the Niagara River or from the Niagara or Welland Rivers at certain points within or without the said park for the purpose of enabling such person or persons, company or companies to generate within or without the park electricity, or pneumatic, hydraulic, or other power, conducting or discharg