though they are men of vision, do not have the means to go into the exploratory work which would be necessary to institute service up there. I am sure, because I have had something to do with the organization of that concern, that when some of the questions that are now in their minds have been answered by the further development of river transportation, they will be perfectly ready, willing, and able to institute service into the upper Missouri River.

In conclusion, gentlemen, may I say that we who live on the Missouri River are very hopeful that your committee will favorably consider this bill to recapitalize the Federal Barge Lines through the Inland Waterways Corporation.

That is all of my formal testimony.

Senator JOHNSON of Texas. Mr. Smith, we are mighty glad to have Lad you. We are sorry you were delayed. I do not know what is going to happen to the legislation, but when you get back, you tell the Yankton Chamber of Commerce that they should be congratulated on having such a fine representative.

Mr. SMITH. Thank you, sir. There is one thing I would like to add to that, if I may: We are particularly hopeful that pioneering can be done on the upper Missouri River and on all of the Missouri River, because it is the only major waterway in the entire inland waterway System upon which there has been no pioneering by the Federal Barge Lines.

Senator JOHNSON of Texas. Let me ask you this one question: If the committee should decide that it did not want to go as far as the amendments of March 23 do go in restraining the type of operations and expansion, would you still favor the Government putting in this $18,000,000 and modernizing the equipment, and going on operating under the same limitations we have now?

You do not need to answer that if you do not want to.

STATEMENT OF HENRY MCCAMPBELL, CHAIRMAN, OMAHA DOCK BOARD, OMAHA, NEBR.

Senator JOHNSON of Texas. We are delighted to have you with us. We had your able Senator here this morning.

Mr. MCCAMPBELL. My name is Henry McCampbell. I am chairman of the Dock Board of Omaha and a member of the Mississippi Valley Association; member of the Omaha River Development Association; and that is all as far as this is concerned.

Senator JOHNSON of Texas. I hope you will make your statement as brief as you can as we have a number of other witnesses. Mr. MCCAMPBELL. I will, Senator.

Senator JOHNSON of Texas. Of course, as you know, we have had one of the Senators from your State in here, and the Congress has shown it is not very adverse to the Wherry substitutes. We have adopted one or two of them.

So please keep your testimony as brief as you can, but tell us why you want this.

Mr. McCAMPBELL. Very well.

The people of the Missouri Basin have a right to expect that they will receive the same consideration and governmental aid in the development of their waterways as any other section of the country.

It is upon this premise that we submit here today our united insistence that pioneering work of establishing waterborne commerce as a feasible and profitable undertaking on the Missouri River be vigorously prosecuted by the Federal Barge Lines.

You heard Congressman Whittington say:

We view with pride the amazing progress that has been made under the Pick-Sloan river development plan to harness the water resources of one-sixth of the Nation's land area-the Missouri Basin.

That program was authorized by the Congress of the United States in the Flood Control Act of 1944. It passed the test of public opinion, of State and local participation and cooperation. The Congress has provided more than $375,000,000 since 1945 to build this great river control program. Three years of major construction have gone into the work in the Missouri Basin.

That program for the Missouri Basin envisioned the maximum use of the available water in the Missouri River and its major tributaries for the benefit of the people of the basin and the Nation. It specifically included Missouri River navigation as one of its major objectives.

Immense sums of money, our money and the money of the entire country, have been provided by the Congress to promulgate and carry forward this great development.

Important municipalities along the Missouri River have invested municipal funds in large amounts in the building of river ports, wharves, grain terminals and other facilities to facilitate waterborne commerce on the Missouri River. In my own city of Omaha we voted $250,000 in bonds, and within the last year have invested that money in the development of a municipal wharf, with rail connections, an 80,000-bushel grain elevator and other facilities to give our city and our area the benefit of cheap river transportation.

We and these other cities have a right to expect that our investments, made in good faith and with Government assurance that we were spending wisely, will not be frittered away and our confidence betrayed by lack of a firm governmental policy with respect to maximum pioneering of navigation on the Missouri River, as provided by law. We of the Missouri Basin not only have a moral right to expect that adequate river navigation pioneering service be carried out on the Missouri River, but we have a legal right. That right was written into the law by which the Congress created the Inland Waterways Corporation, operator of the Federal Barge Lines.

The Inland Waterways Corporation Act was passed in 1924. It was established for the specific purpose of pioneering and developing navigation on the Mississippi River and its navigable tributaries.

In the act the Congress declared its determination to foster and encourage the development of inland waterways navigation.

This is the policy as then announced and it has not been altered. It is hereby declared to be the policy of Congress to continue the transportation services of the Corporation until:

1. There shall have been completed in the rivers where the Corporation operates, navigable channels, as authorized by Congress, adequate for reasonably dependable and regular transportation service thereon;

2. Terminal facilities shall have been provided on such rivers reasonably adequate for joint rail and water service;

3. There shall have been published and filed under the provisions of hapter 1 of this title, such joint tariffs with rail carriers as shall make generally available the privileges of joint rail and water transportaron upon terms reasonably fair to both rail and water carriers; and 4. Private persons, companies, or corporations engage, or are ready and willing to engage, in common-carrier service on such rivers. I submit to you that on the Missouri River, one of the major navigable tributaries of the Mississippi system, these policies of the Congress, which have not been altered, have not been met.

The Inland Waterways Corporation has had a dual responsibility throughout a difficult period in the development of inland waterway

systems.

It has been called upon to achieve the profitable operation of a transportation agency, while at the same time establishing pioneer bargeThe service upon such routes as the upper Mississippi and Missouri Rivers before the engineering improvements had been completed on the channel.

Nothing but deficits could be expected during the promotional period from such ventures. It is obvious that the economic merits of river transportation could not be given a fair test under such conditions until the river channels had been canalized to uniform dimensions and coordinated into a system, navigable throughout by standard barge equipment.

As a general rule, there are no published barge-line rates in effect and applicable for the movement of interline traffic between the Missouri River and the other rivers of the inland waterway system. The handicaps causing these retarding conditions rapidly are being Vercome. There is now no physical deterrent to the establishment and expansion of joint, interchange water line service between all ports on the Ohio, Illinois, and Mississippi Rivers on the one hand, and the Missouri River as far as Sioux City on the other.

For the first time, tonnage other than Government construction aterials shows a substantial increase.

The practicability of through transportation between ports on the Farious branches of the system is demonstrated by the statistics f water-borne freight collected by the Corps of Engineers for 1947. Commercial barge traffic on the Missouri for that year totaled 1,000,

19 tons.

Traffic on the Missouri in-bound from Mississippi River ports reached 6.145 tons; from the Ohio River, 6,518 tons; and from the Elinois River, 279 tons. This is a total in-bound of 12,942 tons. Out-bound from Missouri River ports to the Mississippi River were 1945 tons, 54,000 tons of that amount being destined for points beyond New Orleans on the Gulf Intracoastal Waterway.

The Warrier waterway received 2,531 tons and the Ohio River, 2,229 tons, a total moving out-bound beyond the mouth of 78.103 tons. The remainder of the 900,912 tons of commercial barge traffic on the MisSouri River moves between local ports.

What is needed now is a definite renewal of the mandate of the people to the Inland Waterways Corporation, a mandate not to line services, but to continue to open the way by pioneering and reter into cut-throat competition with established private bargesearch to develop the full capabilities of the inland waterways system,

including the Missouri River, and thus to return to the taxpayers th funds invested, by maximum utilization and coordination of th economical transportation thus provided.

We of the Missouri Basin have helped to pay the freight for pion eering and development of navigation on the Mississippi and othe tributaries. Until the Missouri River is similarly developed by th agency established by the Congress to do the job, we have every justi fication and moral obligation to the people of the Missouri Basin to fight for the same treatment.

Therefore, we ask that you support us.

This is the resolution which the Mississippi Valley Association passed unanimously in 1949 at St. Louis:

We approve the continued operation of the Federal Barge Lines on the inland waterways and specifically recommend its continued pioneering work of th Missouri and upper Mississippi Rivers.

We recommend the abolishment of the Federal Barge Lines only when private interests are willing and able to care for the water transportation needs of the communities of the entire Mississippi Valley as provided in the original organic act creating the Inland Waterways Corporation.

My concern is for the people's interests of Omaha and Nebraska. I have paid very little attention to river navigation on the Mississippi or the Ohio.

We believe so sincerely that the development of the Pick-Sloan plan is the biggest thing that has ever hit our country. We believe at least an important part of that Pick-Sloan plan is navigation.

I cant' prove it, but I am of the opinion that every bushel of grain that is raised in the State of Nebraska eventually will reflect a 5-cent increase in its market value from the fact that the river navigation will put us closer to the markets of the world.

I have listened with a great deal of interest to your efforts to try to find out the cost of this. I don't believe anybody would say that you could start by entering navigation on the Missouri River and make a profit right now because the first thing is that you have to develop the traffic.

The traffic is passable, but it is not developed at the moment. But the benefits to our particular country that we can see, in my mind. justifies the expenditure of $18,000,000.

I go along with the $18,000,000 because nobody has suggested any other figure.

Now as to the cost of operating on the Missouri, it is going to be costly, because I understand they have only two power boats that can come up the Missouri.

I rode the Harry S Truman from St. Louis to Kansas City, and it took that boat 56 hours to make that trip when the water was high and the current was 7 or 8 miles an hour, and it had the equivalent of about 4.000 tons of weight on it.

The Franklin D. Roosevelt, which is one of these old dilapidated boat's that they have talked about, came with the equivalent of about 3,000 tons, and it took it 26 days. That seems like a lot of difference.

The Harry S. Truman probably isn't properly designed. The spread of power isn't properly designed for the Missouri, but it has a lot of power. If we had new equipment like that, and with the very evident saving, we think we could go places.

I haven't the heart to say that the Inland Barge Lines are going to make a profit the first thing on the Missouri River, but I believe this: 10 miles below Omaha

Senator JOHNSON of Texas. What you are saying is that you beHere you could go places with equipment of the Harry S. Truman type, and you want more of it?

Mr. McCAMPBELL. That is right. Ten miles below Omaha the public power system is building a steam plant, and they are going to use proximately 250,000 tons of coal a year. They are providing facildes to receive about 40 percent of that expected demand of coal on the

:ver.

Senator JOHNSON of Texas. Is that a State power authority?

Mr. MCCAMPBELL. No. Our public power-they are political enes: they don't belong to the State. They give them a charter, just se the Omaha Dock Board. We are a political entity set up by the egislature, and these public power districts are very similar-in theory of being set up-to the Omaha Dock Board and to a drainage Istrict.

Senator JOHNSON of Texas. I assume the State legislature authorzes them to issue and sell bonds?

Mr. MCCAMPBELL. That is right. This public power district is tailding this plant, and they hope to be able to get 100,000 tons of coal year, by river.

The Inland Waterways people tell me this plant, incidentally, sn't finished-that when they are finished and equipped to take this oal by river, and the Inland Waterways can haul it to them-and body else is in the territory to haul it to them-that and the expeted grain return from Omaha will put the operation of the Misuri River in the black.

They don't say it is going to make a lot of money, but it will keep from going in the red, and it is awfully important to us, Senator. I thank you.

Senator JOHNSON of Texas. Thank you, sir.

STATEMENT OF WILLIAM MARRIOTT, SECRETARY, SIOUX CITY GRAIN EXCHANGE, SIOUX CITY, IOWA

Senator JOHNSON of Texas. Mr. Marriott.

Mr. MARRIOTT. My name is W. H. Marriott. I am secretary of the Soux City Drain Exchange, with 21 members and 500 employees. I ave had 40 years' experience in the grain business and particularly in grain traffic, all in Sioux City.

Today I am appearing as a member of the Sioux City Dock Comission, representing the city of Sioux City with a population of 100.000 people but serving a metropolitan area with a population of 00,000 people.