Saga - 1976, Side 189

FOSSAKAUP OG FRAMKVÆMDAAFORM
181
SUMMARY
Waterfall purchase and development plans
This article offers an attempt to throw light on various aspects
of the „waterfalls affair" to which little or no reference was made
in the paper in the last issue of SagaA)
The first section deals with early steps to acquire rights over
water, closely connected, of course, with the growing- importance
of the exploitation of water-power abroad for hydro-electric schemes
in the service of various kinds of industry. The idea of harnessing
water-power in Iceland first cropped up in the year 1894, though
there were no practical developments at the time.
The effective pioneer in this field was Oddur V. Sigurðsson, a
mechanical engineer, who had lived in both the U.S.A. and Eng-
land. He was the inventor of a special method of extracting ace-
tylene gas from coal and chalk. In the years 1897—99 he acquired
water-rights on the rivers Jökulsá á Fjöllum, Skjálfandafljót and
Dynjandisá, while Tlie Icelandic Water-Power Syndicate Ltd., which
he founded in conjunction with English interests, obtained rights
on the river Sog. When it came to the point, however, these schemes
proved abortive. Other foreign parties also acquired water-rights
m Iceland, though on a smaller scale.
These activities aroused discussion. On the one hand there was
a strong feeling against foreign investors and enterprises aoquiring
a position of permanent control in the country by gaining possession
of its future sources of power. On the other hand there were hopes
of bringing more working capital into the country for the promo-
tion of new industries and the increase of native expertise.
In the second section an account is given of the first reactions of
the Icelandic parliament (Alþingi) and governmental authorities
to new prospects in this field. Bills for the limitation of the rights
of foreign nationals to own or control property had been introduced
in 1891 and 1893, but these had not received parliamentary assent.
However, a similar measure was passed by the parliament of 1899.
ls is clear that the events of the years 1897—99 played a major
Part in getting this bill through parliament. In his report to the
government, Magnus Stephensen, the Governor-General, opposed the
promulgation of the bill as law on the grounds that it would hinder
foreign investment in Icelandic industrial enterprises, and the gov-
ernment refused to ratify it, though it reserved the right to pre-
sent a measure designed to protect Icelandic national interests
against speculation in the waterfalls and real estate of the country.
:) Saga 1975, pp. 5—102, with English Summary.