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<br />
<br />RATIONALE
<br />FOR THE
<br />PREFERENCE
<br />CLAUSE
<br />
<br />The prer~rell~c d;:ul\(, rl..'pr(,~(,llh a dl~Li~il)lllo U..,L' 11\ a rarli,,:ul,lI mannel
<br />resources which arc t)\\'lh:U hy Ihe 1'L'{)pk \Jf 1111.,> Uli!lllry and hdd ill
<br />slcwardship on Iheir hc:hali' h~ I ill' h'dl'fi.il g(l\dIlIJlClil. This rclalih'l\'
<br />young cnulllfY has mad~' a 1111Il1hl'l" of l-'hoil'('> itl It) hfW. ih t"L'\l1l1h.'L"
<br />would be ot.'\"eJopt'u ,illld tJljJJ/cd. I ft)l1l !lh: Ja~:-. PI" II1tll'C Ihall a cClltllr~'
<br />ago, \\'hen Congress appr\1\'l.~d grant:- fur railro,-Id rigllls-11f.\\i.l~. 10 Ihl.?
<br />prescnl, \...'hen il drcidl.... Ihe tCfllPi lIrllll \\ hich Nalit..lu~t1 Park ,tlld Fnr'~...1
<br />land.., ~hall he used, a fel,l, h;I'iIC prilll:jpk.'l 1\;1\'(' ,L!.ll\'("rul.'d. Prl)hahh Ilh'
<br />mosf signifil'aru r~ lIwllhc ll..,e of pllhlil..: Il'o.;(IUJ"Cl'.'" fllf pJI\'~lk !lain will
<br />be countenanced only If there i:-. a bl!~l..'l pllbli~: pllrpll.~(' Il) pt: \L'I\'I..'d.
<br />Thus it \\'a~ perceived Ihal1hl.' c":,)J1I)lI1il.' tll.!lIl..'fll a..,.'",:rlling 10 prj\ilh,.'I..'Ol-
<br />porations owning railrn<.llts i\S i.t )"("'.1 tI I l)f Ihl' gLIll1 ,)1" Ii~t\l..,-nr'\\'i1~'
<br />would be more lhan nl'f~Cl hy 11lL' hel1L'flh I,;) hl.' Il.'ali/L'd hy lhe NUIHlIl
<br />as a whole that \vould fll)\\" 1'10111 thL' I..'\P;IIl~iUIl ,)f a Ir;llIspnnalioll S!"
<br />tern acros~ Ihe COl1lil1l.'lll. I ~ Similarly, 1 hL' Ct)lit~r,''''''' ~kcl(kd Ihal it \\'I)lIld
<br />permil Ihe potential Jlydrot"'JtXlri\: pO\\"t.'r III It.-. 11\ t.'l' Il) hl.' dc\ L'h1pl,.'d h~
<br />privatel:ompanics, sinl.:c the pllbll( hL'llL'fih 10 hL' (h.~ri\l~d 111\111 fh.H1J
<br />control and eleciriricalioll \\ ould 1\".1r,.:lllf ~dltm 111.1; prj, aId" nWIll:d
<br />profit-making compani('s In llse puhlil.' n:...,ullrl.'l..'> 110\\'1..'\'1..'1, COIl/2.I\."S
<br />als0 expressed a desire that I Ill..' helh.'fil~ of IHlhlil.. r~.>Ullh:l.'~ f"H\ dlrC(rl~
<br />to the publk, wht:n~\C'r il \\.~l;-. po.~:-.II")k 1It,II lilL'~ ..11\ .....l\. h~' ilh-,I\ldill~ ill
<br />the ~latules providing hlr 1111.' pr,1I1l \.)1" Il~drtlL'kcIIIC Llcilil: 1i1..'I..'II:">~~ ~lll
<br />r,'\pljl.~jl rn.'fcn:llL'C 10 ~Iate and I\I\...;d !'d\'l.'rlllll\:lll~d l.'lIl 11 il.......
<br />The principii..' thai publil.' r(~,...lIllll'l.':-, :-.II(Hild hClil.'I'il 1'11\ all' ,'I II pIlI :t.
<br />lion:o:, only where 111.) tifh~r .drerU;I(II'C j,.'Olhi..,lt:'1l1 \\ 1111 llh' Pllhlh' ifill') \''.1
<br />euuld be found alsl) was c\prL's~l.'d ill (Ill': ;-.t)-ci.dkd "}lh..'fL'rl.'lI(l.' CI~IlI"l'"
<br />in th~ sta(u{e~ providing I'l)f thL' di~ll"Ihlllil.)ll \It 1..'\.:\........ 1'l.'dc"tJl~' gl..'ll-
<br />('ratl.?u power. The "prd'l~rI.?IH..\..' cliHi~l.'" I~ I1\H ....11 111111.:11 .t dl.'(i..iIHl III
<br />favor one type Ill' utility ~olllpallY O\'l.'r ;Ulllllll'l a..... il i.., a dCl-,i...i.\1l III lei
<br />the 1l11lion's rcsolln.::~..,. in 1111..' form...)!" L'kL'lriLal L.:IlL'rg~ gCl1l.'ralcd in }'\.'d.
<br />eral plants, be distribuled 'Jirl.'l:tly 10 1 I h..' IWlldl1'~ 11L'llpk' \\hl.'lc\~r
<br />(1t1ssihle, The preference dau....t' fl,...I"'lIJ'~)lIthl.' I'nlll\\\\I1~ hil...i~ 1.'1.1Ih:eph:
<br />(I) the po\\-.t:r generatL'd or 11\\ IIcd by lilt. rl.'(krdl ;';l)\ l.'l"nllH'1lI ,...., ill 1..',-
<br />SCIH:e, owned by lhL pllb/il.' :<-.illl..'L ';I\Pil~'I..'1 flilld.'-. dlL' tJ.'Il.'d f"r Jill.' l'tll)-
<br />"II"IICli0n or i.H:qlli"iilioll l)j thl.' l'a.:i1ILiL'~ all\1 Ilk' fhl" ill~ \'i1kl" h ;l
<br />n.lIl1nd [CSoun.:c which \.., l.l\\llcd and L.:Plllflllkd h~ ~tHl''''IIllClll.d
<br />authority; (2.) lI:"lcful "ll~lal P1l1IH\"l.';-' ;tJc ;-.l.'nL'd h.\ CIl;-.Uflllg lhal illl.'
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<br />":\Ll III ~1iH\.:i1.'. 1t'i7~. 11'\ Sial. 4K2,
<br />4.1ll.S.l' IIJ4.
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