tion, they are all for the Indians. I have secured radio time (KFYR twice) for them to speak and tell the people their side of the story, for the press will not give it, especially the Bismarck Tribune. I asked Kn. Simons how he and the Army engineers (who never figure on saving money for our Government) are going to get around the fifth amendment of the Federal Constitution (which according to Attorney General Johnson has never been amended, repealed, or rescinded from the Federal Constitution) and all Simons replied, “Oh, the Indians will have to move etc.” I said that I thought with many others that it is high time that our Uncle Sam stopped kicking our first American citizens around and stopped breaking treaties, which our blessed Government have never kept a single one. Why is this done? Isn't it time that something is done? I'm all for the defense, Senator, of this poor, defenseless, minority group. Mr. J. B. Smith and Rev. Case were here the other day and I again assured them of my loyal support which our Amrican Indians have had for over 25 years and I am certainly not going back on this now when such a grave, preposterous wrong is about to be done to them. I am in constant touch with our general federation officers and their chief counsel, Ralph Howard Case, Washington, D. C. I'm writing Representative Robertson, too. Lemke and Langer are for them. Well, must close. I think that I have amply made up for the time I have waited in answering your letter. We shall be very happy to have you call, Senator, whenever you have the time. I did so want to attend that R. O. C. dinner, but I could not get away from home. With kindest wishes and regards and hoping that you will take this letter in the spirit in which it is meant, I am, in all sincerity, Faithfully yours, FLOOD CONTROL, GENERAL Mrs. ALFRED ZUGER, STATEMENT OF HON. JAMES E. MURRAY, UNITED STATES SENATOR FROM MONTANA, BEFORE A SUBCOMMITTEE OF THE SENATE APPROPRIATIONS COMMITTEE FORT PECK DAM HYDROELECTRIC GENERATING UNIT (The following statement was submitted for the record:) APPROPRIATION FOR THE INSTALLATION OF A THIRD HYDROELECTRIC GENERATING UNIT AT THE FORT PECK DAM, MONT. Senator MURRAY. I appreciate this opportunity to appear before your committee to urge favorable action on the necessary appropriation of $2.930,000 for the installation of a third hydroelectric generating unit at the Fort Peck Dam in my State of Montana, and I should like to emphasize that the proposal can be justified on two counts: (a) It is economically desirable on the basis of increased rate of repayment; and (b) it is socially justifiable because of the benefits to be derived by the people of the area from increased sales of low-cost plectric power, for expansion of REA and municipal services, and increased development of irrigation through electric pumping instead of the present gravity-type system. You will recall that under the provisions of the Fort Peck Project Act of May 18, 1938, the Secretary of War is required to "provide, construct, operate, maintain, and improve" such machinery, equipment, and facilities for the generation of eleteric energy at Fort Peck as the Bureau of Reclamation may deem necessary to serve the actual and potential markets as may be found therefor. The act further provides that the Bureau shall act as marketing agent to dispose of this electric energy. The War Department has constructed and now operates the dam and the Bureau has developed transmission facilities for the marketing of the electric energy. The Fort Peck power plant as originally designed, was constructed for three generating units, but up to the present time only one generator has been operating, as war conditions have delayed the addition of the second and third units. It can easily be appreciated that with one generating unit only and no reserve power provided, there have been inevitable interruptions and the Bureau of Reclamation bas *** practically estopped from entering into firm agreements etive purchasers of electric power of this uncertainty or contrRCES of a continuous supply. Consequently, most of the electricity energy has had to be disposed of as secondary energy at very low cost to the Montana Power Co., a private utility, at Great Falls, Mont. Thus, instead of serving a growing market in eastern Montana and western North Dakota in which the need for electric power far exceeds the existent supply, the energy that is being generated at Fort Peck has gone to a private utility at bargain rates to be used to supplement its own supply at a lower cost than it could obtain such power from any other source, Some of the necessary transmission lines to carry power to the markets in eastern Montana and western North Dakota are now in operation, while others are under construction by the Bureau of Reclamation. These lines serve a power-hungry area and when completed will also serve irrigation pumping loads, firm commercial, rural, and other loads in thees areas. However, until more generating units are available for operation at the Fort Peck Dam, reliable or firm power cannot be provided so that these lines may be fully utilized. In addition to the present lines, the contract for the construction of the Williston to Garrison, N. Dak., line has been placed. This line when built will supply the construction power for the Garrison Dam, and, in addition, will provide means for serving waiting customers in western North Dakota. The latest estimate for construction power at Garrison alone is 9,000 kilowatts. In addition to this demand, there is an immediate market in western North Dakota for approximately 20,000 kilowatts of electric power. Later when the Garrison power plant goes into operation, the Fort Peck-Williston and the WillistonGarrison lines will provide a tie between the two power plants which will constitute a power grid that will provide electric power at intermedilte points. To point up the critical need for power in eastern Montana and western North Dakota, we should examine present and anticipated power demands in terms of existing and proposed power supply facilities. At the present time, power demands for firm load, that is, power available on demand, which is exclusive of secondary energy, have already approximated 15,000 kilowatts according to the latest report of the Bureau of Reclamation. With the anticipated construction load at Garrison Dam, in western North Dakota, and increased loads in the Glendive-Miles City area, it is estimated that the total demand will be increased from the present 15,000 kilowatts to between 30,000 and 40,000 kilowatts. The present generating unit at Fort Peck is 35,000 kilowatts; the second unit which is scheduled to go into operation sometime this year is a 15,000-kilowatt unit, and the third unit which is under consideration here will be of 35,000-kilowatt capacity. When the second unit goes into operation, there will be a total of 50,000 kilowatts of installed capacity, but since 35,000 kilowatts are in one unitthe one now in operation-the assured (dependable) capacity will be equal only to the capacity of the second unit, or 15,000 kilowatts. In other words, it is necessary to assume that the supply of electric power from either unit may be cut off because of break-downs, thus leaving as a basic minimum supply that which can be furnished by the smaller unit, or a total of 15,000 kilowatts. Because of the anticipated increase in power loads to at least 40,000 kilowatts, it is clear that the third unit is needed as quickly as it can be installed. With this unit installed, there will always be at least two units functioning with a minmum assured capacity of at least 50,000 kilowatts to meet any load demands. The lack of adequate generating facilities at Fort Peck to supply an everincreasing demand for electric power in the surrounding areas was realized more than a year ago, in the spring of 1946. At that time the Corps of Engineers was requested by the Bureau of Reclamation to proceed with the installation of a third unit. However, the President's order restricting construction made it impossible for the Chief of Engineers to initiate this action. In December of last year, the Secretary of the Interior requested by letter to the Secretary of War that this work be expedited; but again due to economy reasons the War Department was unable to proceed with the Bureau's request. What I am particularly interested in emphasizing to the members of this committee is that this appropriation for the installation of a third generating unit at Fort Peck is economically justified. The Government has a very large investment in the Fort Peck Dam and power plant, amounting to $125,682,000. This investment cannot be expected to provide an adequate monetary return unless its possibilities are fuly realized. Because of a lack of generating units, its full use is now bottlenecked. There is no question that there is a surplus of water available at the dam and it has been conclusively shown that there is an overwhelming demand for electric power on a firm basis. To prevent increased sales of power and consequent repayment of an investment that lies idle, for reasons of economy, is not only the antithesis of sound policy, but is false economy in itself. To substantiate the economie justification for the appropriation to install this third generating unit, I should like to introduce into the record for the consideration of the members of your committee a copy of a financial operation study showing repayment of investment from power revenues. This study shows the anticipated growth in sales of firm power during the period of repayment. It indicates that there will be a great increase in power sales during 1947. These figures were based upon the anticipated operation of generating unit No. 2, but since operation of that unit has been delayed until this year, the anticipated increase will probably not occur until the latter part of 1947 and the first part of 1948. If the third unit of 35,000 kilowatts is installed and put in operation by 1949, the sale of firm energy can be increased further, as is indicated in the study. This will, in turn, increase revenues which, with an expanding market, are estimated to reach a total annual amount of $1,700,000 by 1954. For the reasons given herein, I am sure any reasonable man would agree that the cost of installing the third unit as against the projected rate of return on the total Fort Peck investment is justified on economic grounds. To refuse to appropriate funds for this purpose would be uneconomic and unsound. Furthermore, if funds for this generating unit are appropriated and it is placed in operation as soon as possible, benefits to be derived through increased irrigation and the expansion of rural electrification services are sufficient in themselves to justify the cost of this unit. Development plans for the area around the Fort Peck Dam include numerous REA and irrigation projects along the Missouri and Yellowstone Rivers and their tributaries. The attached charts which I ask be inserted at the conclusion of my remarks, show the esti mated requirements for power from the Fort Peck Dam of present and potential customers for the period including 1952. The REA projects shown thereon are now being served or have requested power in the amounts as given for various years. Likewise, the estimated loads as given for the irrigation pumping projects represent what is considered necessary for the development of irrigation in this area. Present irrigation methods include a considerable amount of the gravity type which requires diversion dams and single headgates providing the supply of water for the canals. Future irrigation methods, by contrast, will utilize electric pumping facilities which, until recently, have been too costly to permit most irrigation projects to be economically feasible, for the reason that low-cost power such as can be furnished at Fort Peck has not been available heretofore. In addition to its own market area, the Fort Peck power plant will be required to furnish electric energy to the Garrison, N. Dak., area and later to the Canyon Ferry area until such time as generating facilities there are in operation in those areas. At that time a coordinated power operation will serve a greatly expanded market which, it is estimated, will soon absorb all the electric power capacity developed. For these reasons I urge the members of this committee to give favorable consideration to the appropriation that will permit installation of the third hydroelectric generating unit at the Fort Peck Dam as soon as possible. It is economically and socially justified. There is an immediate and increasing need for the electric energy it will supply not only to the surrounding area but to facilitate the construction of other public power and irrigation projects, that with the Fort Peck Dam and power plant form an integrated power system that will provide real and lasting benefits to the people of eastern Montana and western North Dakota. I should like to include with my statement the following charts furnished by the Bureau of Reclamation which show: First. A financial operation study of investment repayment from power revphus at the Fort Peck Dam. Second. Construction programs under the Fort Peck power system, fiscal ww* 1947 and 1948; and Third, Tables showing present and potential consumer demand for power and **Aigation. The CHAIRMAN. The hearing will adjourn. Whereupon, at 12 noon, Wednesday, July 16, 1947, the hearings on War Department civil functions appropriation bill, 1948, were Corps of Engineers. Flood control, general. Page 2, 43, S3, 368, 371, 420, 481, 502, 505, 545, 552, 563, 627, 643, 686, 704, 712, 754, 755, 841, 849, 879 4. S. 319 14.43 201.250 204.320 198 4,319, Clark El Keseraz. Ga. and S. C.. Clearwater River and Red Lakes project. Cinansti project. Útan.. Coraptor Creek, C&t. Conemauch Ever Reser ZVÉT Conway CoLITY je vec dimas. 1. 2. and S. Ark. 45, 434, 718, 723 359 854 834 629.650 Conway Courty districts 5 and 7 and Fope County No. 1, 205, 367, 368, 856 135 351, 656, 659 707, 757, 759 636, 643, 649, 715 $42. 546 350, 358, 362, 364, 857 116. 343 858 766 858 338 347. 352 125. $20 $21, 451, 491, 369, 892 |