AZ vs. CA:11 California Exhibits, Vol. XI; Nos. 1001-1011; 1101-1109; 1201-1251; 1301-13431301-1343

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-47- tion that this method shall be accepted by the other States whose borders join Arizona, to an equal division of the benefits to be derived from any hydro-electric development between the States of Arizona and Nevada. Also, we have repeated the suggestion and again propose, that the compensation or revenue to the States from such development should be at least the equivalent of the amount the States would derive in taxation levied under the authority of their own laws. As a measure of arriving at such revenue we have proposed that the payment to the States shall be a minimum of one mill per kilowatt hour of power or power privileges sold or leased. For the details of this proposal reference is made to the 'Memoranda of Arizona's views with respect to an agreement between the States of Arizona, California and Nevada,' which is appended hereto and made a part hereof. One mill per kilowatt hour divided as above is the equivalent of $3.28 per annual horsepower to each State. ''The representatives of Arizona came to this conference earnestly desiring an equitable agreement between the States and committed to the policy of exerting every reasonable effort to that end. Whatever disappointment we may have suffered by reason of the attitude of the representatives of the State of California, such still is our desire and our policy." Recess to November 7 On October 5, a recess was taken to November 7. At the present time, however, a movement is on foot for conferences on power between representatives of the States of California, Nevada and Arizona, and a short postponement of the general conference is considered likely. The Commission hopes that through the medium of earnest negotiations an agreement may be reached which will fully protect the rights of Arizona and of all the States of the Colorado River Basin and result in the development of the river. In the event that such an agreement cannot be reached at this time, all the power the Commission can exert will be brought to bear to secure recognition of this State's rights in any legislation bearing upon the subject which may be enacted by Congress. Failing that, and as a last resort only, recourse will be had to the courts. Respectfully submitted, Colorado River Commission oe Arizona, Geo. W. P. Hunt, Chairman. MULFORD WINSOR, Secretary. The report was ordered filed. Mr. Akers moved that 5,000 copies of the report from the Colorado River Commission be printed. The motion was agreed to.