In Bartow County, Ga., for example, there are more different kinds of minerals than in any other similar area in the United States, manganese, barytes, ochre, talc, and a variety of other minerals too numerous to mention, most of which are dependent for profitable production and sale upon the provision of cheap freight rates, which are not now obtainable.

Within a comparatively short distance of the proposed head of navigation, Rome, there are the greatest marble quarries in the world, and close to Rome there are also tremendous quantities of granite.

I feel, and others who are more competent than I to express an opinion feel, that the rule adopted by the Army engineers in only considering traffic now originating in the basin in determining the possible benefits from the development of the river is too strict a rule, and one which might very well be modified so as to include the probable development of freight not now existing through the opportunities which would be accorded by the provisions of cheap freight rates. However, I realize that those are not subject matters which come within the jurisdiction of your committee, but I am getting to the point in the report which has heretofore been submitted, which I think is related to the question which is now being presented.

In the report it is estimated with power development on this river at certain points the total cost for development of navigation and power would be approximately $57,000,000, but that in the event of such a development under a plan which is designated as alternative B the cost for navigation purposes alone would be only $22,435,000 as against the $34,239,000 which was estimated for the cost of provision of a 9-foot channel from Rome to the Gulf if the development of power should not be had in connection therewith.

Now, this Allatoona Dam project is therefore related to the possible and hoped-for development of the Coosa-Alabama River for navigation purposes, and the expenditure which may be had at the Allatoona Dam will considerably increase the benefits in connection with any plan which may hereafter be approved by Congress in that direction.

The Allatoona Dam, standing upon its own footing alone, is one of the best, from an economical standpoint, of any that I have heard discussed before your committee.

I realize, of course, that there are other sections of the United States where more tremendous flood damages have been sustained, and it has been my pleasure, as it has been my duty, as a Representative not only of the people of my State and section, but of the people of the United States, to cooperate, when I could, as a Member of Congress, in the provision of proper aid for flood control in other sections which have been disastrously affected by flood; but in most of those cases the Government gets nothing back except the benefits which are secured by the people who have heretofore suffered from the floods. But in this case the flood control benefits are clear profit for the Government, because it is conclusively shown that the development of power would afford an income to the Government very largely in excess of the amount that would be required to amortize the investment and pay all operating expense.

In the report of the district engineer, approved by the division engineer, an expenditure of $9,600,000 was contemplated for the

establishment of two 8,000-kilowatt units, with a production of power at the dam, which it was estimated would produce 92,500,000 kilowatts of current at a value of $340,000 annually, with benefits accruing to the three dams which are already being operated by the Alabama Power Co. further down the river, equivalent to 22,500 kilowatts annually, of a value assessable under the Federal Power Act, of $280,000, making a total return from the investment of $620,000 annually, as against the carrying charges, amortization charges, everything involved which is necessary to return the amount of its investment to the Government, of $399,000 or we will say approximately a profit of $220,000.

The CHAIRMAN. Without any desire to interrupt you, I am glad you brought that out, because I did not get it clear in mind from the statement of the district engineer, and since you have brought that out if you care to you may develop it further and we would be glad to have you do it.

Mr. TARVER. Yes, I hope to be able to do it to some extent, Mr. Chairman.

So that the amount from the return assured from the sale of power alone is $220,000 (on the plan of the district engineer for an investment of $9,600,000) in excess of the amount which would be necessary to be collected annually in order to amortize the cost of the investment and to provide for its operation.

So that not only will a profit be realized by the Government upon the investment from power alone, but in addition to that there will be an elimination of these flood damages to the city of Rome and to the 50,000 acres of agricultural land involved herein.

This is on the basis of initial installation of 16,000 kilowatt production. If there is an initial installation of 30,000 kilowatts, as recommended by the Board of Engineers for Rivers and Harbors, or of more than 30,000 kilowatts as recommended by General Schley, or of 65,000 kilowatts, as recommended by the Federal Power Commission, the value of the power produced must necessarily show a proportionate increase.

Most of the conflict, Mr. Chairman, involved on these power questions are involved between those who feel that these power projects should be carried on by the Federal Government and those who feel that the activity ought to be carried on by private industry.

In this case there is no conflict. In this case the Georgia Power Co. which I think has been more cooperative with the Government's power program than almost any similar power company in the United States, is acting in harmony with proponents of this project, and has given assurance as to its position, and I wish to have permission to insert their written assurance later.

The CHAIRMAN. You may do so.

Mr. TARVER. That it will buy this power at the switchboard at prices which will bring the returns which are estimated by the Government engineers.

The CHAIRMAN. You have that privilege.

Mr. TARVER. So it seems to me, Mr. Chairman, and I do not desire to take up an undue amount of the committee's time, that there certainly ought not to be any objection, if any flood control projects are to be considered by the Congress at this session at all, to the inclusion of the project mentioned, which will not only pay for itself,

but which will pay a profit, and which in addition will provide substantial flood control benefits.

That is all I wish to say, but Senator George is here, and he desires to speak to you in regard to this matter.

(The communications from the Georgia Power Co. are as follows:) MAY 9, 1938.

Mr. W. H. FOSTER,

Secretary, Rome Chamber of Commerce, Rome, Ga.

DEAR MR. FOSTER: Mr. J. J. McDonough, our division manager at Rome, has discussed with me your letter of May 4 to him requesting an expression from me of Georgia Power Co.'s attitude toward the contemplated project to rid the city of Rome from the present high water and flood menace through the construction of a combined flood control and power dam on the Etowah River at or near Alltoona Pass.

You state that you are familiar with the cooperative attitude of Georgia Power Co. in connection with the Clark's Hill project on the Savannah River. Our position in connection with this suggested project on the Etowah is identical with our attitude toward the Clark's Hill project. At the present time we own a dam site and 43,262 acres of land and flood rights, being practically all the land that will be necessary in connection with the reservoir that would be formed by a dam that would be constructed at this location. As our general engineer, Mr. William P. Hammond, advised Col. R. Park, of the United States engineers' office at Mobile, in his letter of September 22, 1937, in connection with this same project, this development, as planned by our engineers, would produce approximately 150,000,000 kilowatt-hours per annum with an installation of 40,000 kilowatts in generating equipment. It is one of the developments in a general plan which our engineers perfected some ten years ago for the complete development of the Etowah River above Kingston. We have not only purchased the amount of land mentioned above, but we have also done a large amount of engineering investigation, including diamond drilling of the site; all of which you will appreciate involved substantial expenditures.

We will be glad to cooperate with the Federal Government in this project on the Etowah River on any reasonable basis which protects us on our present investment and our present market for the distribution of this power. We would, of course, require a reasonable length of time to absorb the amount of power that this development would make available, and this period would naturally depend upon when the project was completed and what general business conditions were at that time.

Yours very truly,

P. S. ARKWRIGHT, President.

ATLANTA, GA., April 9, 1940.

Hon. M. C. TARVER,

House of Representatives:

We renew and confirm our offer of cooperation in developments of Allatoona project as stated in our letter to Government engineers.

GEORGIA POWER Co.,
P. S. ARKWRIGHT, President.

STATEMENT OF HON. WALTER F. GEORGE, UNITED STATES SENATOR FROM THE STATE OF GEORGIA

Senator GEORGE. Mr. Chairman, I would not undertake to go into any detail as to this matter, because in the first place I believe Judge Tarver has covered it very well.

Judge Tarver has pointed out to you that the Allatoona Dam, if constructed, will produce the minimum estimated power at a profit over and above the entire carrying charges, and it will directly save from the floods this large area of very valuable farm lands, estimated at 50,000 acres, and it will also solve the problem, as it is

229579-40--57

believed at least by the engineers, both the Army engineers, and the private engineers of flood damages at Rome, Ga.

For a long, long time the protection of the city of Rome has been a matter of concern and some consideration has been given to it by the Congress. A levee system has been devised and built in Rome which does protect a part of the city, but it does not protect against the extreme damage which is almost certain to occur and recur.

The situation at Rome I think is one that discloses over a long period of time constantly recurring floods and constantly recurring damages. And the construction of the Allatoona Dam, would, it is believed, on the very best authority that I have been able to consult, completely protect the city against the flood damage and flood threats as well as the agricultural lands.

And in this particular area there is a density of population already and combined with varied resources of the area it is possible ultimately to develop the Alabama River for navigation purposes to the sea.

But taking this particular project on its own merits, and considering it alone, this dam that is proposed in the report, or approved in the report of the Army engineers, will give protection to the agricultural lands and will insure the city of Rome against the threatened and more serious flood damages from year to year which may occur. It is not speculative, because damages have occurred from time to time, and unless this further step be taken, or some similar protective measure be approved, the flood damage to the city of Rome and to the farm areas will recur again.

Judge Tarver has very properly pointed out on a minimum development the power resources at the dam. That is as suggested by the engineers who made this survey, and without the possibility of any increased power, this project is more than self-sustaining. It is selfsustaining plus a profit to the Government that will go in liquidation to the Government of the cost of the dam.

I very earnestly beseech the favorable consideration of the committee in considering this project.

My colleague, Senator Russell, unfortunately is not here today because he has been detained in Georgia, but he is very heartily in favor of this project, and desires to go on record as heartily approving the Allatoona Dam Project.

The CHAIRMAN. The committee is very glad to have your statement, Senator George, and we are very glad to have your additional statement, Judge Tarver.

FURTHER STATEMENT OF HON. MALCOLM C.
MALCOLM C. TARVER, A
IN CONGRESS FROM THE STATE
OF

REPRESENTATIVE

GEORGIA

Mr. TARVER. Mr. Chairman, I am interested also in the RossvilleChattanooga project, and I have furnished a statement as to that to the clerk, and I ask that it be inserted in the record in connection with that project.

The CHAIRMAN. The request will be granted.

FURTHER STATEMENT OF HON. WALTER F. GEORGE, UNITED STATES SENATOR FROM THE STATE OF GEORGIA

Senator GEORGE. Mr. Chairman, may I say, as to the latter project mentioned by Judge Tarver, that of course this Rossville-Chattanooga project is primarily for the protection of the city of Chattanooga, but Rossville is a prosperous city with an important textile industry just south of it, and I would say adjacent to the city of Chattanooga, and the people of Rossville, the officials, have called my attention to this matter, as they have Judge Tarver, and I would be pleased to join in such recommendations as Judge Tarver makes with respect to this particular project.

I understand some question has arisen, or may I put it the other way, that some question did arise as to whether the flood protection project desired at Chattanooga be undertaken and completed by the Army engineers or by the T. V. A., but all my information, and the reports that I have read with some care indicate that both the Army engineers and the T. V. A. people are agreed upon one thing, and that is that the flood protection there is necessary and is of vital importance to the city of Chattanooga and it is likewise important to this thriving little city down in Georgia adjacent to it, with a population of 3,500 or 4,000 people.

And I thank you for permitting me to make this statement for the record at this time.

The CHAIRMAN. As the Senator has correctly stated, both T. V. A. and the Army engineers agree on the reports, and we have a very, very strong intimation, and that is putting it mildly, from the Chief Executive, that the authorization should be given to the Tennessee Valley Authority for the construction of these projects.

Mr. ENGLEBRIGHT. Mr. Chairman, it is submitted that there is an emergency existing under any circumstances at that point.

The CHAIRMAN. I would say it is submitted there is a flood-control project there, and nothing has been done about it.

Senator GEORGE. I think the chairman is right on that point. The CHAIRMAN. Thank you, Senator George and Judge Tarver. (Senator George submitted the following telegram for the record:)

Hon. WALTER F. GEORGE,

CHATTANOOGA, TENN., April 9, 1940.

United States Senate, Washington, D. C.:

Mr. MZL Fuller has been officially authorized to represent the city of Rossville, Ga., in all matters pertaining to local flood-protection works for Chattanooga and Rossville. Your S. 3634 before Commerce Committee 2 p. m., Wednesday. We urge you to insist that the Army engineers plan be authorized and not the Tennessee Valley Authority plan as the Army engineers provide protection works for Rossville and the Tennessee Valley Authority does not. If Chattanooga protected and Rossville left unprotected great injustice will be done us and we will continue subject to disastrous flooding.

V. W. BENNETT, Mayor, City of Rossville, Ga.