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<br />I <br /> <br />I <br /> <br />14!J!J <br /> <br />be authorized to employ some one indivi- <br />dual, or more individuals, a lawyer primar- <br />ily, with engineering help certainly, to <br />start that task and get it done as quickly <br />as it can be done. I apprehend that there <br />will be testimony in that case that we can <br />use to our advantage. There will be testi- <br />mony that we must be prepared to meet if and <br />when we meet California in the United States <br />Supreme Court. I will say right now that I <br />think that is inevitable and that it will <br />happen before we expect it. <br /> <br />The second thing, now there is a soft <br />spot in this report, because I neither had <br />the time nor do I have the qualifications <br />or learning to make a study of the Hoover <br />Dam power and water contracts. That study <br />must be made. It must be made in such a <br />way that we can come up with our own answers. <br />You will all notice undoubtedly in the re- <br />port that the rates charged for power at <br />Hoover can be adjusted upward or downward by <br />the Secretary of the Interior. Mr. Kuiper, <br />Mr. Gildersleeve and I, as they undoubtedly <br />will report to you later, in December made <br />a trip in the Lower Basin to look over those <br />installations and to see what was happening <br />and we were advised by a man who is one of <br />the superintendents, one of the main boys of <br />the Imperial Irrigation District, that the <br />cost of generation of steam power, and they <br />have several plants constructed and one under <br />construction for generation of steam power, <br />was approximately six mills. For Colorado <br />River power they are paying 2.84 mills. <br />What will the traffic bear, so far as rates <br />are concerned at Hoover Dam? How far up- <br />ward can the Secretary increase those rates <br />in order to provide the funds which he is <br />directed to provide by the Boulder Canyon <br />Project Act?" <br /> <br />MR. PETERSON: "John, may I interrupt you there?" <br />MR. BARNARD, SR.: "Yes." <br /> <br />MR. 'PETERSON: "1 think that 2.84 mill rate at Hoover <br />is firm power, and secondary power, in a <br />substantial amount, is a good deal cheaper <br />than that, about three-quarters of a mill or <br />something like that." <br />