24, 1922, upon an interstate compact to settle these rights, subject to the ratification of the State legislatures and Congress.  All seven States except Arizona at one time ratified, the Arizona Legislature making certain reservations which failed to meet the approval of the governor.  Subsequently an attempt was made to establish the compact upon a six-State basis, but in this case California imposed reservations.  There appears to be no division of opinion upon the major principles of the compact, but difficulty in separating contentions to methods of development from the discussion of it.  It is imperative that flood control be undertaken for California and Arizona. preparation made for irrigation, for power, and for domestic water.

Some or all of these questions are combined in every proposed development.  The Federal Government is interested in some of these phases, State governments and municipalities and irrigation districts in others, and private corporations in still others.  Because of all this difference of view it is most desirable that Congress should consider the creation of some agency that will be able to determine methods of improvement solely upon economic and engineering facts, that would be authorized to negotiate and settle, subject to the approval of Congress, the participation, rights, and obligations of each group in any particular works.  Only by some such method can early construction be secured.

WATER POWER

Along with the development of navigation should go every possible encouragement for the development of our water power.  While steam still plays a dominant part, this is more and more becoming an era of electricity.  Once installed, the cost is moderate, has not tended greatly to increase, and is entirely free from the unavoidable dirt and disagreeable features attendant upon the burning of coal.  Every facility should be extended for the connection of the various units into a superpower plant, capable at all times of a current increasing uniformity over the entire system.

RAILROADS

The railroads throughout the country are in a fair state of prosperity.  Their service is good and their supply of cars is abundant.  Their condition would be improved and the public better served by a system of consolidations.  I recommend that the Congress authorize such consolidations tinder the supervision of the Interstate Commerce Commission, with power to approve or disapprove when proposed parts are excluded or new parts added.  I am informed that the railroad managers and their employees have reached a substantial agreement as to what legislation is necessary to regulate and improve their relationship.  Whenever they bring forward such proposals, which seem sufficient also to protect the interests of the public, they should be enacted into law.

It is gratifying to report that both the railroad managers and railroad employees are providing boards for the mutual adjustment of differences in harmony with the principles of conference, conciliation, and arbitration.  The solution of their problems ought to be an example to all other industries.  Those who ask the protections of civilization should be ready to use the methods of civilization.