A MEMBER. Is he in favor of this proposition?

Mr. BOWEN. Yes; he is our chief engineer. I would say right here that the bonded indebtedness of the city of Buffalo is so great that they are unable to do this as a public improvement.

The CHAIRMAN. Does that finish your statement?

Mr. BOWEN. The city of Buffalo asked the Secretary of War to do this thing two years ago, and in their resolutions asking the Secretary of War to investigate, if he decided we should have the grant, they asked that certain promises that we make should be incorporated in the grant as a condition precedent. The terms of our proposal were: This thousand feet of dockage, and the right not only to the city, but to all other municipalities and individuals on the Niagara frontier to drain into this canal as long as the grant will last; in addition to that, we will voluntarily put in this provision that although now the rate charged in Buffalo is not to exceed 9 cents per kilowatt-hour, it shall not exceed 4 cents per kilowatt-hour; and furthermore, that the city in consideration, shall give its aid in the promotion of this enterprise, and use of such sewage, and the right and permission to use the streets for conduits under terms not more onerous than those given to the other companies in Buffalo. And this contract goes into the record.

The CHAIRMAN. Very well; have you finished?

Mr. BOWEN. I have some few remarks.

CONTRACT FORM WITH MUNICIPALITIES.

This agreement, made this day of

191-, between the Erie & Ontario Sanitary Canal Co., a corporation of the State of New York, party of the first part, and the city of Buffalo, a municipal corporation of the State of New York, by its mayor, with the concurrence of the common

council of said city, party of the second part, witnesseth: Whereas said party of the first part has obtained or expects to obtain the consent of the Secretary of War to take water from Lake Erie for the use of the proposed canal, extending from Lake Erie to Lake Ontario; and is to construct and operate said canal for the purpose, among others, of furnishing power to industries operating along the line of said canal, and to such municipalities adjacent thereto as may desire to take advantage of the opportunities afforded by said canal; of receiving and disposing of in a sanitary manner the sewage of such municipalities and industries; of abating the periodical floods caused by the overflow of Buffalo River and Cazenovia Creek; and of affording means for reversing the flow of streams and sewers now emptying into Lake Erie and Niagara River, thereby purifying the water supply of the Niagara Frontier; and of serving as a branch of the barge canal now in process of construction by the State of New York, and affording dockage facilities for private and, if need be, for municipal uses.

Whereas said party of the first part desires the cooperation of said party of the second part in the promotion of said enterprises, and said city of Buffalo has manifested its willingness to cooperate by joining said party of the first part in its application for the consent of the Secretary of War, by the following resolution duly adopted by the common council of said city and approved by the mayor, viz:

"That the city of Buffalo, by its common council and mayor, hereby commends to the favorable consideration of the Secretary of War the memorial of the Erie & Ontario Sanitary Canal Co., and believing that the enterprise, if feasible at all, and if established and conducted with due regard to the public welfare, will inure to the immeasurable benefit of sanitary and industrial interests of national scope and influence, urges the Secretary of War to grant the prayer of the petition of said Erie & Ontario Sanitary Canal Co., provided that upon investigation he is convinced that the company's plans are practicable from a legal and engineering point of view, and provided further that such grant be made expressly subject to the following conditions precedent.

(1) That prior to the commencement of the work of excavating and constructing said canal, or of proceedings for the appropriation of lands therefor, said company shall enter into written contracts with the city of Buffalo, and such other municipal corporations along the line of the proposed canal as may desire such arrangements, securing to the said city of Buffalo and other municipal corporations, in the interest of the public health, the perpetual right to the free and unlimited use of said canal for the delivery of sewage and drainage thereto at the most sanitary and convenient points, without charge to any of said municipal corporations for such use and privilege; securing like privileges to individuals and private corporations occupying the territory adjacent to the canal, and affording such assurances as may be required that such sewage and drainage shall be disposed of in a sanitary

manner;

(2) That prior to the commencement of work or of proceedings for the acquisition of lands for said canal, said Erie & Ontario Sanitary Canal Co. shali also stipulate by contract with the said municipl corporations, or such of them as desire it, to furnish to all persons and corporations power and light for municipal, industrial, business, or domestic purposes on terms which shall be just and equal to all consumers, admitting of no discriminations among consumers similarly situated, excepting in favor of municipal corporations as contrasted with private industrial or business corporations or individuals; (3) Such other conditions calculated to promote the public interests as said Secretary of War may in his judgment deem advisable to prescribe."

Now, therefore, in consideration of the exchange of mutual benefits as aforesaid, and of the sum of one dollar paid by each of the parties hereto to the other, receipt whereof is hereby confessed and acknowledged, the parties hereto agree as follows:

Said party of the first part hereby grants to the party of the second part the perpetual right to construct sewers and drains from such points in the city of Buffalo as may be determined upon by said city, to and into the said canal of the party of the first part, and to empty therefrom into said canal its sewerage and drainage that is not prohibited by law; and that no charge whatever of any kind or nature shall be made by said party of the first part to said city of Buffalo of the second part for such use and privilege, other than the cooperation of said city mentioned in the foregoing resolutions; the party of the first part shall receive and dispose of said approved sewage and drainage in a thoroughly sanitary manner, subject to the approval of the State and local departments of health.

Upon receipt of written applications in form acceptable to said departments of health, which shall bind the applicants not to deliver or cause or permit to be delivered improper or objectionable sewage or drainage, and not otherwise, the party of the first part shall also grant freely and without charge, like privileges of sewage and drainage to individuals and private corporations occupying lands adjacent to said canal.

In measure proportionate to its other similar obligations to other municipalities and other patrons, said party of the first part shall also furnish to said city of Buffalo sufficient current for power and light for municipal purposes, upon the demand of said municipality, and at such prices (not to exceed 4 cents per K.W.H.) and on such terms as shall be hereafter mutually agreed upon, in no case to be higher or more burdensome to said city of Buffalo than to other municipal corporations, or to any individuals or industrial corporations similarly situated along the line of said canal. Said party of the first part further agrees to furnish to individuals and business and industrial corporations within the city of Buffalo, on terms which shall be just and equal to all consumers similarly situated, sufficient current for power and light for industrial, business, or domestic purposes, at prices not to exceed 44 cents per K.W.H. Said party of the first part also agrees to provide for the use of said city of Buffalo, at some convenient point, a frontage along its canal of not less than 1,000 continuous feet for dockage purposes, provided, however, that said city of Buffalo shall exercise its option in this regard at some time within five years from the time of the opening and operation of said canal for navigation, and immediately after the exercise of such option shall commence construction of docks for the benefit of said municipal corporation and its inhabitants; the privilege hereby granted to be upon such reasonable terms as shall be agreed upon by the parties hereto.

Said party of the first part further agrees to save said city of Buffalo harmless from all costs, charges, damages, and rights of action accruing or arising

from the construction or operation of said canal, or from insanitary conditions, if any, that may result from the exercise by the party of the second part of any of the privileges herein before granted.

Said party of the second part, in consideration of the foregoing, agrees to cooperate with the party of the first part in securing such privileges from the Government of the United States and from the State of New York as may be necessary to the successful construction and operation of said canal, provided, however, that such cooperation shall not entail upon said party of the second part any pecuniary loss or cost; and said city of Buffalo grants to the party of the first part such sewage and drainage and the right, permit, and license to use and occupy and cross over or under any and all streets, alleys, and waters of said city during the life of this contract, for any and all electric distributing lines, conduits, and cables that it may find necessary for distributing current throughout the present or future limits of said city upon as advantageous terms and with not more expensive construction than are or may hereafter be enjoyed by or permitted or granted to any other company under similar conditions.

This agreement shall be binding upon and shall inure to the advantage of the successors and assigns of the parties hereto.

In witness whereof, the parties hereto have caused these presents to be duly signed and sealed the day and year first above written.

The CHAIRMAN. If you have anything else relevant to the subjectmatter to put in the record you may give it to the reporter.

Mr. BowEN. Yes, sir; for instance, the rates in Niagara Falls. Mr. COOPER. What about the rates right now? I thought you could give a summary.

Mr. BOWEN. In Niagara Falls, Ontario, it is 43 cents per kilowatt horsepower-in Buffalo it is not to exceed 9 cents. The power rates in Niagara Falls, Ontario, are, for power delivered at commercial voltage, $23 per horsepower, less $3 if paid before the end of the month. In Buffalo the average for all purposes is within a few cents of $35 per horsepower per year. There is no competition, because the companies there are both subsidiary companies of the Niagara Falls Power Co. A list of all these companies and their directors and their securities is in a pamphlet which, if it is of any interest to the committee, is at your service.

The CHAIRMAN. Leave that with the committee. Just give the name of it to the reporter to identify it.

Mr. BOWEN. "Statistics of local and miscellaneous securities, by J. C. Dunn & Co.," published in December, 1909.

I would like to state that a similar grant to that we ask you for was made in 1905 to the Mississippi River Power Co., at Keokuk, Iowa. I have a copy of the grant made to them, and it was on condition only that they should give the free use of enough electric power to operate the lock, and they should build the dam, lock, and dry dock at their own expense. They will be generating 200,000 horsepower next year, and they are an example of good faith.

The CHAIRMAN. You may get up all these things and give them to the reporter. We will now adjourn until to-morrow morning.

Whereupon at 5 o'clock p. m. the committee adjourned until Friday morning at 10 o'clock, this hearing being adjourned until 2 o'clock. The following are the changes in the Smith bill suggested by Mr. Bowen:

In the preamble strike out "fifth article of the"; strike out "Canada" and insert "Great Britain"; after "nine" add "and for other purposes."

66

Page 1, line 3, after diverted from" add "Lake Erie in Erie County, New York, or from."

28305-12- -9

Page 1, line 5, strike out "power purposes" and add “all purposes mentioned in said treaty."

Page 1, line 10, after "nine," insert " to wit: 20,000 cubic feet per second for power, and 1,600 cubic feet per second for sanitation and navigation."

Page 1, line 10, after above insertion, add “such individuals, companies, or corporations only as shall conserve the usefulness of the water to its fullest extent shall be given permits."

Page 2, line 10, strike out “made to” and add “given with the consent of." Page 2, lines 11, 12, and 13, strike out "with full power and authority to said State to make such grant or grants of the use thereof as it may determine to be for the public interest," and add "and shall be governed by the rules of precedence and preference made in said treaty; and shall be limited to such amounts as shall not injure or interfere with the navigable capacity of Niagara River or its proper volume as a boundary stream, or the scenic grandeur of Niagara Falls."

PETITION TO CONGRESS AND TO THE INTERNATIONAL JOINT COMMISSION IN BEHALF OF ERIE & ONTARIO SANITARY CANAL CO.

Whereas it is stipulated in Article V of the treaty between the United States and Great Britain, signed January 11, 1909, commonly known as the waterways treaty, that the United States may authorize and permit the diversion within the State of New York of the waters of Niagara River above the Falls for power purposes, not exceeding in the aggregate a daily diversion at the rate of 20,000 cubic feet per second, provided the level of Lake Erie and the flow of Niagara River shall not be appreciably lowered;

Whereas the prohibition of Article V does not apply to the diversion of water for sanitary and domestic purposes, and for the service of canals for the purpose of navigation, and it is stipulated in Article IV that the boundary waters shall not be polluted on either side to the injury of health or property on the other;

Whereas the cities bordering on the Niagara River and situate in the district contiguous thereto are subjected to epidemics of typhoid fever, caused by the polluted water taken from Niagara River, and considerations of public health demand the abatement of these dangers without delay;

Whereas the Erie & Ontario Sanitary Canal Co. has been organized under the laws of the State of New York to construct without State or Federal aid a canal between Lakes Erie and Ontario, beginning at a point at or near Smokes Creek in the city of Lackawanna, thence to a point at or near the mouth of Eighteen Mile Creek on Lake Ontario and laterals thereto;

Whereas the barge-canal law of New York State (sec. 3, ch. 147, Laws 1903) makes no provision for the use of the Erie Canal from the Guard Lock at Black Rock, Buffalo, to Tonawanda, and said Erie & Ontario Sanitary Canal Co. offers to deepen, widen, and maintain said portion of the Erie Canal from Black Rock to Tonawanda as a branch of the barge canal without cost to the State of New York, and under plans to be approved by the canal board and to be used in connection with the main channel of the Erie & Ontario Sanitary Canal to stop the pollution of Niagara River and the barge canal;

Whereas said canal may be used free of cost by the cities of Lackawanna, Buffalo, Tonawanda, North Tonawanda, Niagara Falls, Lockport, and all other municipalities and communities situate upon the Niagara frontier, to carry off all the sewage and storm waters now flowing from said cities into Lake Erie and the Niagara River;

Whereas said canal will be of sufficient depth and width to enable boats, barges, and other water craft of large tonnage to navigate the same from its beginning on Lake Erie to a point intersecting the Erie Canal at or near Pendleton, thereby increasing the efficiency and value to the public of said Erie Canal, and providing additional terminals for the barge canal;

Whereas the level of Lake Erie will not be lowered by the building of said canal so as to interfere with or affect its navigability, and the waters flowing within the Niagara River shall not be diverted so as to effect the beauty and grandeur of the volume thereof flowing over Niagara Falls;

Whereas the International Joint Commission must hear and pass upon the application of said company for the use of the necessary water for the canal: Now, therefore,

We respectfully ask that a grant of water from Lake Erie be made to the Erie & Ontario Sanitary Canal Co., conditioned as follows:

1. That said company be authorized to take 6,000 cubic feet of water per second from Lake Erie for sanitation, navigation, and power-4,400 cubic feet thereof being the remaining part unused of the 20,900 cubic feet allowed for power on the American side under the treaty, and 1,600 cubic feet thereof being an allowance under said treaty especially for sanitation and navigation; which volume of water shall be taken through three channels designated as Buffalo River, Smokes Creek, and Black Rock Harbor.

2. That said company within two years after the date of the grant shall begin construction of said canal, without seeking from State or Nation other aid than that afforded by such cooperation as may properly be effected between Federal and State authorities, and shall with due diligence prosecute the work to completion.

3. That in consideration of said grant said company shall give to the cities of Lackawanna, Buffalo, Tonawanda, North Tonawanda, Niagara Falls, Lockport, and all other municipalities, public and private corporations and individuals situate or living in what is known as the Niagara frontier, the free use and right to use said canal during the full term of the grant, for sewage disposal purposes and for carrying off flood waters caused by storms.

4. That in consideration of the facilities which it will afford to the communities, municipalities, corporations, and individuals enumerated, said company shall have and enjoy for 99 years the right to and possession of all the water power which it is possible to develop from the volume of water which it will be permitted to withdraw from Lake Erie and cause to flow through its channel into Lake Ontario.

5. That said company shall have the right, when Buffalo River shall have been sufficiently deepened and enlarged to a junction with said canal, to make a proper connection of said river with said canal, and cause the waters of Lake Erie to flow through said Buffalo River into said canal.

6. That said company may make such changes and improvements in Smokes Creek, Ellicott Creek, and other streams in Erie and Niagara counties, as will permit water to enter said streams from Lake Erie and Niagara River, and flow through them into Lake Ontario; and may build and maintain at the mouths of Smokes Creek and Eighteen Mile Creek such protecting piers and docks as may be necessary, all of which construction affecting navigation shall be done under the direction of the War Department.

7. That said company shall forfeit its grant should it be judicially determined that it has entered any conspiracy or unlawful combination or monopoly in restraint of trade; and said permit shall not be transferable without the approval of the Secretary of War, and no such approval shall be given without the consent of the State of New York; and no electric current produced under said grant shall be transmitted to any point without the State of New York without the consent of the State.

8. That said company shall prove to the satisfaction of the Secretary of War that it will produce more electrical horsepower from every cubic foot of water per second to be used by it under such grant than can be produced by any other company.

The foregoing preamble and request was read, considered, and adopted at a regular meeting of the Central Council of Business Men, Taxpayers, and Residents' Association of Buffalo, representing upward of 3,000 members, this 11th of September, 1911.

WILLIS H. TENNANT, Secretary.

Adopted also by city of Lackawanna, city of Lockport, county supervisors of Erie County, N. Y.; village of Williamsville, village of Kenmore, village of Lasalle, village of Youngstown, city of Buffalo.

ERIE & ONTARIO SANITARY CANAL CO. WANTS A SIMILAR GRANT TO THIS.

[PUBLIC-No. 65.]

AN ACT Granting to the Keokuk and Hamilton Water Power Company rights to construct and maintain for the improvement of navigation and development of water power a dam across the Mississippi River.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the assent of Congress is hereby given to the Keokuk and Hamilton Water Power Company, a corpora