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<br />000409 <br /> <br />-9- <br />of the Senate directed the Committee on the Judiciary to report to the Senate <br />that for the purpose of improving navigation, the Gov~rnm~nt has th~ undoubted <br />right to establish and maintain, in connection vii th any dam, an electric power <br />,olant to furnish motive power for the operation of locys and gates and to sell, <br />lease, or rent for compensation the surplus power that may arise from and be an <br /> <br /> <br />incident to such improvement of navigation. The Federal POHer Act of 1920 <br /> <br /> <br />(41 Stat. 1063) followed by the Act of August 26, 193~ (49 Stat. 338) created <br /> <br /> <br />the Federal Power Commission.and based the authority of the activities of that <br /> <br /> <br />commission on the commerce clause of the Constitution. This Act was followed <br /> <br /> <br />by the New River decision (311 U. s. 377 and the Red River decision (Oklahoma v. <br /> <br /> <br />htkinson, 313 U.S. 508), the latter decided in 1942, which greatly broaden <br /> <br /> <br />the authority of the Federal Government in the matter of production and trans- <br /> <br /> <br />mission of hydro-power. In the New River case the court held: <br /> <br /> <br />"In our view, it cannot properly be said that the con- <br /> <br /> <br />stitutional power of the United States over its waters is <br /> <br /> <br />limited to control for navigation. By naviration respondent <br /> <br /> <br />means no more than operation of boats and improvement of the <br /> <br /> <br />wate~Iay itself. In truth the authority of the United States <br /> <br /> <br />is the regulation of commerce on its waters. Navigability, <br /> <br /> <br />in the sense just stated, is but a part of this whole. Flood <br /> <br /> <br />protection, watershed development, recovery of the cost of <br /> <br /> <br />improvements through utilization of povler are likewise parts <br /> <br /> <br />of commerce control." <br /> <br /> <br />The Federal enactment whi ch first dealt 'lith hydro-power produced by a <br /> <br /> <br />reclamation project is that of April 16, 1906 (34 Stat. 116, 117), a pertinent <br /> <br /> <br />part of which provides: <br />