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Show not mentioned as such. There is reference to it in the discussion of the chapter on reimbursement. I would like to read a paragraph, if I may, with reference to that, which I think is probably the best reference in the entire document. The only very specific reference to it is this first whole paragraph on the left-hand column of page 71. "A third criticism of the source of repayment funds is the use of the interest component on the power investment for excess power revenues, or other available revenues to repay a part of the irrigation investment. The principal defense of this practice is that the river resources should be used to develop the land of the basin, or region, particularly since the areas in which irrigation currently is important are generally underdeveloped. Dependence on power revenues in this manner, however, may result in failure to develop some good land because of the lack of power resources in that area, or power rates may have to be higher than would otherwise be necessary." That is all that is specifically said in the entire report. In the recommendations no direct reference to it is made. Mr. Engle: You cannot find any place in the report where the Commission puts its foot down and says-We think the interest component should not be used, or that the interest component should be used in aid of irrigation? Mr. Scheidt: Not in those words, no, sir. Mr. Engle: It looks to me like they dodge the hottest potato in the whole program. Mr. Murdock: May I ask this-If they do not say it in so many words, do you find it implied, either for or against? Mr. Scheidt: It is susceptible of interpretation, I think, both ways. Mr. Murdock: Again, like the Oracle of Delphi. Some fearful and wonderful things have been said, from time to time, about the long established policy, required by existing law for many years, of crediting net income (interest is a part of net income) from the Federal Government's investment in the power features of Federal Reclamation projects toward amortization (after pay-out without interest of the capital investment in such features) of other costs of the project of which they are a part. In -20- |
