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Show 112 WAR FOR THE COLORADO RIVER "I am astonished that you would lend your high office to the invasion of the Dinosaur National Monu- ment by approving the proposed Echo Park reservoir and power project. Doubtless you are aware that this proposal would abdicate a policy that has existed for eighty-two years and has been strictly recognized and adhered to by every administration from the time of the creation of Yellowstone Park to the present day. "Second, your report not only fails to mention, but apparently entirely ignores, the very large hidden federal subsidy that would be involved in the repayment pro- gram proposed by the Secretary of the Interior. "Although the water users pay no interest, the Federal Treasury must pay interest on funds borrowed to finance the construction of irrigation reclamation projects. These interest costs must be defrayed by taxes. Hence, the longer the repayment period, the greater the interest cost to be borne by the Federal Treasury and the tax- payers. "As far as the Federal Treasury and the nation's tax- payers are concerned, the interest costs that would have to be borne by the taxpayers would be the same under the proposed Collbran formula as under the previously advocated device of using the interest component. Both devices involve the same amount of hidden subsidy which would be huge even for the proposed initial phase of the upper basin development. Both have the purpose of creating the impression of project reimbursa- bility, and concealing the fact and amount of the hidden subsidy. Certainly the amount of this subsidy should be fully revealed to the Congress and to the people before making a decision as to the justification for authorizing such undertakings. |
