FJ&G vs HRBRD - CREATING THE SACANDAGA RESERVOIR
The NYS Water Commision report of 1907 documented the likely effectiveness of using the Sacandaga River valley as a buffer reservoir for downstream flood control. The floods of 1913 added public urgency to moving the process forward. Creating the reservoir had the additional benefit of cost-effective hydropower generation and summertime Hudson River waste disposal. The former focussed on the public benefit and thus justified the use of eminent domain as a means of emptying the valley of residents. The latter provided an immediate source of funds to acquire land parcels, build a dam, move cemeteries and buildings, install remedial infrastructure and cover legal and other personnel cost. The likely need for eminent domain also resulted from the wide spread in damage estimates between the FJ&G and NYS The power companies had experience and the deep pockets to see the process through in a relatively short time. They already had a real estate acquisition company (The Indian River Company) - ready to acquire land by hook and by crook. The limited representation and political power of the valley residents, as demonstrated at public hearings about the reservoir project such as the ones in Glens Falls in 1922 simplified the process. A preliminary engineering plan existed as early as January, 1924. On 7/18/1926 the railroad took NYS to court in a last ditch effort to stop the process and/or strengthen it's damage claim.THe FJ&G holdings in Sacandaga Park in 1926 consisted of 86 buildings and approximately 110 private structures (mostly on FJ&G land). The FJ&G also had significant equity in water, sewer & fire prevention systems, right of ways etc.
      
The report of the NYS Water Power Commission gave short thrift to the interest of the Sacandaga River Valley residents. A similar sentiment came through in the Glens Falls public hearings of the Commission leading up to the creation of the Hudson River Regulating District (HRRD) - the future administrator of the reservoir. Clearly, the interests of the downstream flood-impacted communities weighed more heavily, especially following the disastrous flood of 1913. Once the HRRD was created in 1925 and had the authority to issue bonds, engineering details of the project and damage estimates for the valley residents and the FJ&G followed in record time. The area of the Park below the taking line (the area to be flooded) was divided in zones (A, B  ..) and detailed estimates of buildings and inventory were made. - down to the value of the saddles in the donkey barn! Same for the relocation cost of the railroad tracks and railroad buildings; these estimates appear to have been unrealistic low-ball estimates. In the meantime, the Indian River company used funds of the power companies to acquire the land in the valley by voluntary sale, options to sell and eventually, eminent domain. The cost of constructing the reservoir were allocated based on the perceived benefit at that time.
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The design and construction of the reservoir was a succes. The project was completed in 1930 and largely on budget. The "Ferry at Northampton" was replaced by NYS with the Batchellerville bridge. We will never know by how much NYS short-changed the FJ&G since the track relocation never happened. The damage to FJ&G assets was settled for $1,750,000 in 1930. Lake levels fluctuate throughout the seasons, as designed; hydroelectric power generation continues; and benefits to the surrounding communities - recreational, real estate tax collected and commerce, are substantial. Management of the reservoir remains a balancing act between competing interests: flood control, power generation, adequate flow on the Hudson during dry summers and recreational use of what now is called The Great Sacandaga Lake.