Subjects taught At Brown and Harvard, principles of economics. At University of Colorado, regional economics; economics of water resource development; economic theory; history of economic thought; economic planning. Directories "Who's Who." "Who's Who in the West," the American Economic Association. "Who Knows What," Dictionary of American Scholars, vol. III, Social Sciences. Fellowships, awards, and honors Fellow, American Field Service (University of Paris), 1929-30. Fellow, Belgian-American Educational Foundation (University of Louvain), 1933-34 (1937). Fellow, John Simon Guggenheim Memorial Foundation, 1947–48. Twenty-first Annual Faculty Research Lecture, University of Colorado, 1956. Fellow, Ford Foundation Faculty Research Fellowship in Economic Development and Administration, 1957-58. Distinguished Alumni Award, Drury College, 1961. Professional activities and public service 1. Economic Adviser, Consumer Division, National Defense Advisory Commission, Washington, 1940-41. 2. Consultant, National Resources Planning Board, region VII, May 1941-July 1942. 3. Economic Analyst, Wage Stabilization Division, War Labor Board, Denver, June-November, 1944, Public Panel member, 1945. 4. Ad Hoc Subcommittee on International Monetary Policy of American Economic Association, 1945. 5. Member, Advisory Committee on American Participation in the United Nations International Scientific Conference on Conservation and Utilization of Resources, 1949. Participant in the conference of 1949. 6. Chairman, subcommittee, "The Interdepartmental Course" Committee on the teaching of Economics. Report published, Supplement to American Economic Review, December 1950. 7. Member, Informal Committee on Regional Economics, formed at Chicago, December 1950. 8. Member, Committee on Southwest Economy, President's Council of Economic Advisers, 1950-55. 9. Vice-Chairman and Public Member, Regional Wage Stabilization Board, Region 11, 1951-53. 10. Member, Western Committee on Regional Economics Analysis, Social Science Research Council, 1952-56. 11. Director of Ad Hoc staff of Resources of the Future, Inc., to prepare a "Guide to Regional Analysis and Resources Development," 1954-56. 12. Sponsor, Public Affairs Institute, Washington, D.C. 13. Consultant, State of Colorado, Department of Natural Resources, to formulate an "Integrated Policy for the Conservation and Development of the Natural Resources of Colorado," 1957. 14. Chairman of Western Resources Conference Committee, University of Colorado, 1959-60, 1963-64. 15. Lecturer at the 72nd Session of the Salzburg Seminar in American Studies, Salzburg, Austria, February-March, 1961. 16. Member, Board of Directors, Belgian-American Educational Foundation, 1961. 17. Position papers for presidential campaign of John F. Kennedy, "Industrialization of the West," and "A Minerals Policy for the West." 1960. 18. Acting Director, Associated Rocky Mountain Universities, Inc., 1963-64. Publications Books 1. America's New Frontier-The Mountain West, Alfred A. Knopf, 1950. Articles, monographes, reviews 1. "Charles Gide, an Appreciation of," American Economic Review, Vol. 22 December 1932, pp. 922 ff. 2. "Crise et Reforme du Systeme Bancaire en Belgique," Bulletin de l'Institute de Recherches Economiques Louvain, November 1936, pp. 1-14. 3. "International Price Disparities and Their Management," Document No. 1220, American Documentation Institute, Washington, D.C., 1939. 4. "Area Analysis-San Luis Valley, Colorado," National Resources Planning Board, February 1942 (mimeographed). 5. "Employment Trends in Relation to the Post-War Economy of the Denver Area," Denver Regional Association, October 1943. 6. "Industrial Conversion Potentialities of the Denver Ordinance Plant," University of Colorado Engineering Experiment Station, Bulletin, November 1943 (Norman H. Parker, Professor of Engineering, joint author). 7. "Belgian Banking and Banking Policy," A review, American Economic Review, vol. XXXIV No. 2, June 1944, pp. 386–389. 8. "Montana, High, Wide, and Handsome," A review, American Economic Review, vol. XXXIV No. 2, June 1944, pp. 417-419. 9. "The Future of the Mountain States," Harper's Magazine, October 1945, pp. 329-336. 10. "The Determination of Postwar Exchange Rate Parities," Quarterly Journal of Economics, vol. LX, November 1945, pp. 113-135. 11. "Economic Characteristics of Scottsbluff, Nebr.," (prepared for S. R. DeBoer & Co.), 1945. 12. "Economic Characteristics of Idaho Falls, Idaho," (prepared for S. R. DeBoer & Co.), 1946. 13. "The Rise of Regionalism in the Mountain States," The Nation, Western Supplement, September 21, 1946. 14. "An Economic Policy for the West," chapter 9 in Seymour Harris' Saving American Capitalism, Knopf, 1949. 15. "Institutional Barriers to the Economic Development of the Mountain West," Western Political Quarterly, vol. II, No. 4, December 1949, pp. 581–598. 16. "Integrated Introductory Courses in the Social Sciences," American Economic Review, vol. XL, No. 5 pt. 2, December 1950, p. 722 ff. (Garnsey, Knight, Krueger, Malick, et al.). 17. "The Case for General Education in the Social Sciences," American Economic Review, vol. XL, No. 5, pt. 2, December 1950, p. 214 ff. 18. "Heigh-ho Silver," Harper's Magazine, May 1950, pp. 96-100. 19. "Westward the Course of American Capital," New York Times Magazine, November 18, 1951. 20. "Capital Formation in the Mountain West," Proceedings of the Exploration Conference of the Western Committee on Regional Economics Analysis, Berkeley, May 1952. 21. "Water West," Annals of American Academy of Political and Social Sciences, May 1952, pp. 163–180. 22. "Resources for Freedom. A report to the President by the President's Materials Policy Commission," A review, American Economic Review, June 1952, pp. 468-472. 23. "Implications of the Paley Report for the Western States," Proceedings Second Annual Conference of the Western Committee on Regional Economic Analysis, Berkeley, May 1953. 24. "The Southwest," A report of the Committee on the Southwest Economy to the President's Council of Economic Advisers (with other members of the committee), June 1954. 25. "A Projection of the Population of Colorado," (with R. E. Pelz) University of Colorado Studies, Series in Economics, No. 2, May 1955, pp. 1–61. 26. "Regional Science and the Development of the West," The Colorado Quarterly, Summer 1956, pp. 5-24. (This was the 1956 University research lecture). 27. "The Dimensions of Regional Science," Papers and Proceedings, Regional Science Association, vol. 2, 1956, pp. 27–39. 28. "Fair Taxes for Mining," The Colorado Quarterly, VII, No. 3, 1959, pp. 229-240. 29. "Allocation of Water Within a Project or a Common Water Supply Area," Water Resources and Economic Development of the West, Report No. 7 (conference proceedings, Committee on the Economics of Water Resources Development of the Western Agricultural Economics Research Council, November 30. Director of "An Integrated Policy for the Conservation and Development of the National Resources of Colorado," a comprehensive report for the Governor of Colorado (1958 and 1959), including the following volumes: I. Colorado's Natural Resources-Opportunity and Challenge by Morris II. Land and Agriculture. III. Water and Resources. IV. Climate as a Natural Resource. V. Mineral Resources. VI. Recreation Resources and Facilities. VII. Fish and Wildlife. VIII. Administration of Natural Resources. IX. General Summary of Recommendations. Technical Paper No. 1. "A Critical Survey of Several Forecasts of the Technical Paper No. 2. "Location Patterns of Shale Processing-Shale 31. Testimony before the Senate Select Committee on National Water Resources, published in the Congressional Record. 32. "The Great Plains as a Region," The Western Humanities Review, vol. XIV, No. 2, Winter 1960, pp. 61-68. 33. "State Income Differentials-1919-1954." A review, American Economic Review, vol. L, No. 3, June 1960, pp. 473–475. 34. "Past and Probable Future Variations in Stream Flow in the Upper Colorado River," Bureau of Economic Research, University of Colorado, 1961. Research project included following publications: 1. Summary and Conclusions, Morris E. Garnsey, project director. II. A Study of the Statistical Predictability of Stream Runoff in the Up- III. Some General Aspects of Fluctuations of Annual Runoff in the Upper IV. Probability Analysis Applied to the Development of a Synthetic Hydrol- V. Analysis of Precipitation Data in the Upper Colorado River Basin, Richard A. Schleusener, engineering research, Colorado State University, and Loren W. Crow, consulting meterologist, Denver, Colo. 35. "L'Affermarsi Del Concetto Di Regione Negli Stati Uniti," Revista Internazionale di Scienze Economiche e Commerciali, Anno IX (1962) N. 2, Milano, Italy. 36. "Regions, Resources, and Economic Growth," A review American Economic Review, vol. LI, No. 4, September 1961, pp. 724–726. 37. "Investment and Growth in Mature Economies, The Case of Belgium," A review Journal of Economic History, Vol. 22, Issue 2, June 1962, pp. 276–278. 38. "Welfare Economics and Water Resources Development," Land and Water: Planning for Economic Growth, Western Resources Conference, 1961, pp. 191–204. 39. "The Nature and Significance of Economics," Distinguished Lecturer Series, Texas Western College, published by the college, February 1962, pp. 1–17. 40. "Economic Development of Arid Regions," (with N. Wollman), chapter 13, Aridity and Man, American Association for the Advancement of Science, Washington, D.C., 1963. Work in progress under any of the categories listed above Chairman or member: Western Resources Conference Committee, 1959. Conference Planning Committee for Western Resources Conference, 1964. Representative: University of Colorado on the Tri-University Committee on , Science-Industry Relations. Member: Committee for Economic Analysis of a C.U. Denver Center. 41. "Aridity and Politics in the West," Colorado Quarterly, vol. 14, No. 2, Autumn, 1965, pp. 151-160. 42. "Application of Cost-Benefit Analysis in the United States," Far East Trade and Development, July 1965, 20, 663-664, lecture delivered April 25, 1965 at a conference, "Management in a Developing Economy," Teheran, Iran. 43. "Come Porre Fine Alla Povertà in Sicilia," University of Colorado, June 1966. Senator HART. Professor, you were good enough to furnish us with a statement. It will be ordered printed in the record in full as though given in full. As you go along, if you care to summarize or extend at any point, feel free to do it. STATEMENT OF PROF. MORRIS GARNSEY, DEPARTMENT OF ECONOMICS, UNIVERSITY OF COLORADO Professor GARNSEY. Thank you, Mr. Chairman. Considering the hour I shall attempt to summarize. But I must say that my testimony is so sharply focused on the issue of competition and monopoly as compared to what else we heard this morning and it is so controversial that I anticipate that it is necessary for me to spell it out, and further that there will be many questions afterward. Senator HART. We are under no problem of time, Professor. Go right ahead. Professor GARNSEY. Thank you very much. I shall read my statement, but I will try to condense it. I am grateful for the opportunity to appear before you and discuss certain aspects of the problems of the development of our great oil shale resource of the West. For 30 years as a professor of economics at the University of Colorado, I have been interested in the development of the resource, and long have advocated its full development. I advocate its development today, because it will produce jobs and income, and profits and taxes in Colorado; but most of all because it will greatly benefit the American people as a whole by supplying them with abundant and cheap energy consistent with a growing population and a rising standard of living. The tremendous economic value of the resource, alone, dictates that its development be handled in a manner beyond reproach, and its public ownership prescribes that its development be for the benefit of all the American people. My purpose in appearing before you today is to state the facts as I see them concerning this situation and to recommend specific legislation to you and to the Congress for its consideration. Thus, I appear in the direct context of the purpose of congressional hearings and investigations. At the same time, I find it useful, in the interests of clarity, to present my remarks largely in the form of a commentary on statements made by Secretary of the Interior Udall, primarily at the time of his announcement of an oil shale development policy on January 27, 1967. At that time, Secretary Udall said: The public lands in the region representing the largest untapped source of hydrocarbon energy known to the world belong to all of the people and must be used for the benefit of all of the people. I am sure that we all agree with this statement in principle. However, when one looks at the historical and philosophical substance of the statement and at the ways in which it frequently has been ignored in the United States, it is tragically apparent that agreement has too often been limited to principle and not to application. This statement, of course, derives from the natural heritage doctrine. The natural heritage doctrine stretches back into early modern times, and perhaps had its origin in ancient Roman law. According to this doctrine, the land, the forests, the streams, the minerals, and all the natural wealth of the country belong to the people. Mr. J. A. Holmes, the secretary of the Minerals Section of President Theodore Roosevelt's National Conservation Commission eloquently articulated the natural heritage doctrine in his statement that: The resources which have required ages for their accumulation, to the intrinsic value or quantity of which human agency has not contributed, which when exhausted are not reproduced, and for which there are no known substitutes, must serve as a basis for the future no less than for the present welfare of the Nation. In the highest sense, therefore, they should be regarded as property held in trust for the use of the race rather than for a single generation, and for the use of the Nation, rather than for the benefit of the few individuals who may hold them by right of discovery, or by purchase * * *. The right of the present generation to use efficiently of these resources what it actually needs carries with it a sacred obligation not to waste this precious heritage.1 This belief in the natural heritage is a part of the democratic revolt against feudalism when the land and resources belonged to the lord of the manor or to the king, and the people were able to use the land only by the sufferance of the lord. In the democratic revolt, the people became sovereign and all of the resources reverted to them. Indeed, "the Constitution has vested the people as a whole with ownership; both State and Federal Governments act as trustees for the people" on the public domain. However, this is an abstraction and it can be implemented only in two ways. First, the Government can hold the land or resources in the public domain as an agent of the people and, deriving its just powers from the consent of the governed, can manage and operate the land-but only for the benefit of the people. Second, and, of course, in the long run more important, the people can exercise use of the land and its resources through private individual initiative based upon the institution of private property. Consequently, in the new democracy of America when lands and minerals were abundant and the people few in number it became customary to allow the individual a right to appropriate a farm or mine and to claim it as his private property.* Strangely enough, the ancient doctrine did not receive legal sanction in the United States until 1866 as far as minerals were concerned. Before that time prospectors on Federal lands were technically trespassers.5 However, with the Mineral Act of 1866 and the subsequent Minerals Acts of 1870 and 1872,8 the rights of entry, location, and pur 1 Report of the National Conservation Commission, vol. 1, p. 110 (1909). 2 See Noyes, op. cit., supra, note 6, at 221. Ciriacy-Wantrup, "Resource Conservation," p. 145. See, also, Gustafson et al., "Conservation in the United States," at p. 10. E.g., the Homestead Act of 1862, 12 Stat. 392. Bloomenthal. "Multiple Mineral Development on the Public Domain," 9 Wyoming Law Journal 139 (1954). 13 Stat. 440 (1865). 716 Stat. 217 (1870). * 17 Stat. 91 (1872). |