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001160 1957] THE PELTON DECISION 223 In order to demonstrate the validity of these propositions, an analysis of the decision is in order, The Portland General Electric Company, a privately owned public utility, was granted a license by the Federal Power Commission on December 18, 1951 for the construction of a dam, power plant, and appurtenant works on the Deschutes River. The application for the license was opposed by the State Game Commission, the State Fish Commission, the state of Oregon, and a conservation organization.8 The two state commissions and the conservation organization concen- trated their attacks on the damage to fisheries resources in the De- schutes River that would result from construction of the dam. The state of Oregon pointed out the failure of the applicant to secure a license from the Hydroelectric Commission of Oregon and the State Fish Commission, In reliance on the findings of its examiner, the Federal Power Commission held that damage to fish populations would be compensated for by the construction of hatchery facilities and certain cash payments by the licensee,9 Jurisdiction of the Federal Power Commission was predicated on the fact that it was proposed to construct the dam upon the "public lands and reservations of the United States." Section 4( e) of the Fed- er!!l Power Act extends authority to the commission to grant license, for the construction of dams on such lands,'O and section 23 makes it unlawful to construct, operate, or maintain power facilities upon any part of such lands except pursuant to a valid license under the act." Section 3(2) defines the term "reservations" to mean, il1teralia, "tribal lands embraced within Indian reservations,"12 Thus, iu effect, the commission based its jurisdiction on the fact that the fast land on one side (the west) was on the Warm Springs Indian Reservation, and on the other (the east) on public land of the United States. Power-site withdrawals had been made with respect to both sides of the river beginning in 1909, No claim was made for jurisdiction based on the power over interstate commerce. It is admitted that the Deschutes River has its source in the Cascade Mountains of west- 8 The Izaak Walton League of America (Oregon division). See 349 U.S. 440 (1955) . 9 The chief threat is to "anadroll1ous fishll (the type, such as salmon, which ascends the rivers from the sea for breeding purposes). It seems entirely reason- able to assume that, even with the protective measures taken, this fish resource will be damaged severely, Much of the argument before the Federal Power Com- mission and the courts was concerned with this phase of the matter. Important as it undeniably is, the greater damage to vested water rights, the assault on the states' administration of streams, and the resultant general confusion and un- certainty are considered far more fundamental, and the fisheries discussion will accordingly be subordinated herein. 1041 STAT. 1065 (1920),16 USe. see, 797(e) (1952), 11 41 STAT, 1063 (1920),16 USe. sec. 817 (1952). 1241 STAT. 1063 (1920),16 U,S,e. see, 796(2) (1952),