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) Income to United States from stumpage in National forest. Forest Servsurveys indicate 104 billion board-feet timber available on sustained-yield s in northern California and southern Oregon; 70 percent of all timber utary to Crescent City Harbor owned by Federal Government and all npage rights accruing to the Federal Treasury on the basis of $8 to $14 per isand board-feet. Public has benefited by lower lumber prices in southern

ifornia market; barging rate versus truck and rail differential approximates = jer thousand board-feet.

C) Economic development in Crescent City area : Since 1950 population has reased 80 percent, bank deposits 43 percent, lumber production 48 percent, ities 84 percent. jeneral comment.--Project would be self-liquidating. Corps of Engineers

(ulate ratio of cost to benefits as 1.8 to 1. Stumpage rights accruing to the - leral Treasury on lumber marketed by the A. C. Dutton Lumber Corp. alone,

the basis of their maximum mill capacity utilizing federally owned timber uld be approximately $400,000 to $600,000 annually. Installation of Dog Leg ty would permit further economic development of area. However, unless ig Leg jetty is constructed without delay, present operations must be curtailed

even discontinued as result of extreme hazards resulting in prohibitive ineases in operating cost. If this is allowed to happen, the harbor will again vert to an economy entirely dependent on fishing and the past investment in e breakwater will be a complete loss. Construction should be started immediately.--All necessary equipment is now > site and the quarry is opened as a part of the maintenance operation. If instruction not started this year, this equipment must be moved. Would cost o estimated $200,000 to again move equipment to site and reopen the quarry.

APPENDIX

(The information referred to on page 495 follows:)

JUNEAU CHAMBER OF COMMERCE,

Juneau, Alaska, March 8, 1954. Hon. WILLIAM F. KNOWLAND, Chairman, Subcommittee Army Civil Functions,

United States Senate, Washington, D. C. DEAR SENATOR KNOWLAND: This written report supplements the oral testimony given by Mr. B. Frank Heintzleman, Governor of Alaska, and me before your appropriations subcommittee on February 17, 1954.

By way of identification and qualification, I would like to state that my name is 0. F. Benecke. I have lived in southeastern Alaska 16 years, am a principal official of Alaska Coastal Airlines operating throughout southeastern Alaska and am immediate past president of the Juneau Chamber of Commerce.

I appeared before your committee on behalf of 12 communities and organizations seeking an appropriation of $5,170,185 for 12 rivers, harbors, and floodcontrol projects throughout all of Alaska which were authorized by Congress in 1945 or earlier. These projects extend all along the Gulf of Alaska from Craig on the southeast to Kodiak on the west. They include flood control, channel dredging and protected anchorages for boats which are exceedingly important to all of Alaska. The Territory is a tremendous land area enclosing within its boundaries a quantity of land equal to one-fifth of the United States. Strangely enough, it is also a maritime State. Its general coastline is nearly half again that of the continental United States; 12,000 vessels of all types operate within its waters and 75 percent ($90 million) of the Territory's average annual production comes from its maritime industry.

The Corps of Engineers has just completed an economic revaluation of these 12 projects, with a result that there is greater economic justification for each project now than there was when Congress authorized them. Project costs were recomputed, and at 1953 estimates all 12 projects can be completed for less than $5,200,000. A list of these projects, which includes a brief description and cost estimate, is attached.

We do not believe it is necessary to further justify these projects, but to emphasize their importance to our everyday life, we would like to illustrate a few of the problems:

Because the steamship channel to the dock at Seldovia is so narrow and circuitous, vessels must turn crosswise to the inlet making sharp turns in order to follow deepwater. Consequently, arrivals and departures must be confined to slack high tides. Kodiak has much the same problem. At Peters burg boats go aground on minus tides because the boat harbor is not dreix deeply enough.

At Sitka, because of insufficient moorage space, the boats are tied 4 te : abreast, which creates a terrific fire hazard. On January 14 a terrific wind storm tore from its moorings a finger float to which 18 boats were tied The new small-boat harbor proposed for Sitka will eliminate the orercrowded mod tion and decrease windstorm hazard.

Craig, Metlakatla, and Skagway have no protection for their boats from a force winds and mountainous waves.

At Elfin Cove the entrance channel, which is 40 feet wide, is exposed to te sea and is extremely hazardous to negotiate because of lack of depth. Then is irregular shoaling in the main channel to 3.3 feet at low tide.

Due to lack of dredging, all vessels coming to Juneau and departing fro Juneau for points to the southwest, west, and north (over 80 percent of a small-boat traffic) must run an additional 242 to 342 hours. Moreover, dure: winter months they are subject to treacherous waves from gale-force vizi from Taku Inlet which have held vessels up from 2 to 3 weeks at a time.

Of the approximately 80 communities located in southeastern Alaska, och 5 have doctors, drugstores, and hospitals. There are no roads connecting to munities in this area, therefore, residents are entirely dependent upon water and air transportation.

Six of the twelve authorized projects are for boat harbors or basins. In eve nection with the boat harbor for Craig, Maj. Gen. J. L. Schley, Chief of Engineers wrote to the Secretary of War on December 19, 1939, as follows:

“This harbor is one of a number of bases used by small boats engaged in the fishing industry in southeastern Alaska. Additional harbors are needed to pro vide shelter for the fishing fleet, and Craig Harbor is well located with respect to the fishing grounds to serve as one of these needed harbors. The fishing in dustry is the principle activity of the Territory, and the benefits of the propad improvement will accrue both to the fishermen and to the consumers of Alaska fish throughout the United States."

The same condition exists today. Lack of protected harbor facilities has literally driven nearly 1,000 small boats to winter quarters in the States, 1.08 miles away. This has not relieved the crowded conditions because other boats have moved in. The problem is becoming increasingly acute because tbe gradou.' reduction of fish traps increases the dependence upon mobile gear.

Two entirely new industries—pulp and plywood are entirely dependent de the channels and waterways of Alaska for the movement of raw materials fria the forests to mill sites and for the transportation of their finished products 3 markets. These new demands increase the need for channel and harbor inprovements. Our 12 projects can be completed at lowest cost to the Government through the adoption of a 2- to 3-year program which will provide efficient is of the specialized equipment required.

During the last 9 years, Alaska has received only 0.3 percent of the modes appropriated by Congress for projects of this type.

The people of Alaska sorely need these channel, harbor, and flood control ioprovements authorized by Congress and, you know, we Alaskans are for pletely dependent upon our friends in Congress for the support, energy, and drive required to obtain passage of favorable legislation. Therefore, I appeal tr you and your committee on behalf of the communities and organizations I resep sent to wholeheartedly and energetically endorse and support an appropriation of the amount required for these projects. Your assistance is needed more th:D ever because funds for these projects are not included in the Bureau of Budet approved appropriation request of the Corps of Engineers. Yours very truly,

0. F. BENECKE Immediate Past President.

Résumé of rivers and harbors projects in Alaska authorized by Congress which await

appropriations

$332,000

158,000

978,000

109, 885

373, 000

220, 600

252,000

1. Craig, boat harbor: Mooring basin in Progress, none

Adopted, Mar. 2, 1945.
south cove 11 feet deep, 225 feet wide,
700 feet, including entrance channel

of same depth over width of 100 feet. 2. fin Cove, annel: Channel 10 feet

do..

do.
deep, 60 feet wide through outer
entrance and 8 feet deep, 40 feet wide

through inner entrance.
3. Gastineau Channel (dredging Men- do.

do..
denhall bar): Channel from Fritz
Cove 442 miles long, 75 feet wide,
with 0 foot depth and mean lower

low water.
4. Kodiak, harbor channel: Work re- Progress, channel in front | Adopted, Aug. 30,

maining, dredging and rock removal of Erskine wharf 1935, modified Oct.
in channel east of Erskine wharf 22 dredged 1942, cost

17, 1940.
feet deep, 200 feet wide.

$15,600.
5. Metlakatla, boat harbor: Dredging | Progress, none.

Adopted, Mar. 2, 1945.
small-boat basin 2.18 acres 10 feet
deep and rubble-mound breakwater

900 feet long.
6. Petersburg, boat harbor: Dredging | Progress, original project | Adopted, Aug. 30,

and establishment of small-boat called for 842 feet to 11 1935, modified Mar.
basin to 11-foot depth.

fect depth; completed 2, 1945.
1937; remaining project
to enlarge area; dredge
to 11 foot depth (135,000
square feet). (Project
would increase small-

boat harbor 12.) 7. Seldovia, channel: Removal of obstruc- Progress, none

Adopted, Mar. 2, 1945.
tions in entrance channel Watch
Point to depth 24 feet to permit

oceangoing vessels to enter.
8. Sitka, boat harbor: Removal of ob- Progress, channel cleared, | Adopted, Aug. 30,

stacles from channel boat harbor for breakwater and dredg. 1935, and Mar. 2,
Crescent Bay involving dredging ing of basin remaining. 1945.
13 acres to 10 feet deep and 2 break- (Lost float in storm
waters combined length 1,300 feet Jan. 14, 1954.)

with entrance channel between.
9. Skagway, boat harbor: Dredging at Progress, none

Adopted, Mar. 2, 1945.
face of wharf to 30 feet deep for
southerly 700 feet, 20 feet deep for
next 100 feet and small-boat basin
8 feet deep over area of 1 acre near

north end of wharf
10. Skagway, food control: Restoration do.

Adopted, July 24, 1946.
of existing breakwater to original
project cross section, 300 feet exten-
sion thereto, reconstruction and

extension of dike adjacent city.
11. Wrangell, boat harbor: Breakwater do

Adopted, Mar. 2, 1945.
dredging mooring basin and inner
basin in tideflat area east of Shakes
Island 10 feet deep with connecting
channel and rock mound breakwater
320 feet long on reef north of Shakes

Island.
12. Wrangell Narrows (anchorage basin): Progress, original channel | Adopted, Mar. 2, 1945.

Minimum 200 feet by 21 feet channel, completed 1934, modi.
easing curves at 4 shoals, removing fied channel completed
rock pinnacles and anchorage basin 1951; dredging of anchor-
500 yards long, 200 yards wide, 26 age basin adjacent chan-
seet deep near mile 14.

nel remains.

870, 200

44, 500

735, 600

507, 700

588, 700

Total.

5, 170, 185

(The information referred to on p. 1206 follows:)

MILLWOOD DAM

The estimate includes $1,093,000 for a ring levee which would protect the Okay Cement plant and that part of its quarry which would be subject to frequeri flooding.

OCTOBEB 2, 19:13. Hon. OREN HARRIS, Representative in Congress,

El Dorado, Ark. DEAR MR. HARRIS : At the request of Mr. L. R. Matthias, executive secretary of the Red River Valley Association, I am furnishing you certain information rea. tive to the Millwood and Walnut Bayou projects which has been prepared primarily through the efforts of Col. Stanley G. Reiff, district engineer of the Tulsa District, who has direct supervision over these projects.

As you know, the authorized Millwood Dam and Reservoir would be located on Little River about 10 miles northwest of Fulton, Ark. On the enclosed map there is shown an outline of the Millwood Reservoir as authorized, with top of conservation pool at elevation 252 and top of flood control pool at 291.0. The conservation storage to elevation 252.0 would amount to 52,000 acre-feet, and the flood control storage with pool at elevation 291.0 would amount to 2:20S, OMNI acre-feet. Because of the indication of a desire of local interests for consideration of water supply storage in Millwood Reservoir, there is also shown on tbe enclosed map the outline of the top of conservation pool with an additiona! 100,000 acre-feet of water supply storage. With this additional 100,000 acre-fei of storage, the top of conservation pool would be at elevation 257.0, and the top of flood control pool would be at elevation 292. Because of the proximity of the top of flood control pool at elevation 292 to top of flood control pool at elevation 291, the outline of the pool at elevation 292 has not been indicated on the map,

Our studies indicate that nearly all relocations could be accomplished by raise of grade above the effects of the reservoir, and without major changes in aline ment. Operation of the reservoir would affect United States Highway al from a point approximately 1 mile north of Wilton, Ark., and extending northerly for a distance of approximately 6 miles. The highway would be raised above (be effects of the reservoir along the existing horizontal alinement and resurfaced “in kind."

The Gaysonia, Nashville & Ashdown Railroad would be affected for about 12 miles of its length between Ashdown and Mineral Springs, Ark. A spur line of this railroad extending from a point near Schaal, Ark., to the Ideal Co. cement plant near Okay, Ark., would be affected by the reservoir for a distance of about 312 miles. Relocation of both the main line and the spur of the Graysonia, Nashville & Ashdown Railroad would be accomplished by raising the grade above. the effects of the reservoir on an offset alinement approximately paralleling the present line.

The present studies indicated that relocation to the Kansas City Southern Railroad would not be required because of the operation of Millwood Reservoir,

The proposed plan for Millwood Reservoir includes provision for protection of the Ideal Co. cement plant near Okay, Ark., by construction of a dike along tbe north side of the quarry and plant. This dike would provide protection from inundation to the existing cement plant and quarry; however, not all of the land owned by the Ideal Cement Co. could be protected by the dike. The unprotected portion of the property is not developed for quarry purposes at this time, and an allowance for purchase of the unprotected property has been made in the estimate of cost for the project.

The preliminary studies indicate that the Little River Country Club located near the crossing of Little River by Arkansas State Highway 41 between Jerrel and Horatio, Ark., would not be materially affected by operation of Mill wound Reservoir, since the reservoir at that location would be contined to the channel of the stream.

The estimated cost of Millwood Dam and Reservoir is $55 million.

The Walnut Bayou project was recommended for construction in the report of June 20, 1950 prepared by the Board of Engineers for Rivers and Harbors on Red River and Tributaries, Texas, Oklahoma, Arkansas, and Louisiana. The report is under review in the Office, Chief of Engineers, Washington, D. C., at this time, and the economic data are being brought up to date with a view to sub mission of the report to Congress in the near future.

The Walnut Bayou project as recommended in the report by the Board of Engineers for Rivers and Harbors would consist of clearing and enlarging the channel of Walnut Bayou from the Arkansas-Oklahoma State line downstream to mile 7 and diverting the stream into Red River at that point. This improvement 19.2 miles in length would increase the channel capacity to not less than about 3,000 cubic feet per second and would benefit about 15,800 acres of land. The total estimated first costs for the Walnut Bayou project, as given in the report by the Board of Engineers, was $480,000, of which $440,000 was Federal cost and $10,000 was non-Federal cost. These estimated costs were based on 1949 prices.

I trust that this is sufficient for your present purposes. Please let me know when I may be of further service. Sincerely yours,

HERBERT D. VOGEL, Colonel, Corp of Engineers, Division Engineer.

INFORMATION CONCERNING EFFECT OF MILLWOOD RESERVOIR ON IDEAL CEMENT CO.

PLANT, OKAY, ARK., AND ON THE GRAYSONIA, NASHVILLE & ASHDOWN RAILROAD

The Ideal Cement Co., Denver, Colo., operates a cement plant located at Okay, Ark. The plant and quarry are on the north slope of a ridge extending from high ground on the east side of the Saline River Valley to the west. The area of the plant and quarry site is 1,020 acres. Of this area, 570 acres are above elevation 295, 260 acres lie between elevations 265 and 295, and 190 acres are below elevation 265. Elevation 265 is 12 feet above the proposed conservation pool of the Millwood Reservoir and the frequency of flooding at this elevation is about once in 20 years, with a duration of 34 days. Elevation 295 is 2 feet above the top of flood control pool at elevation 293 and filling of the reservoir to elevation 293 is estimated to have a frequency of once in 50 years.

Available information indicates that in 1952 the plant produced 1,369,000 barrels of cement from 427,000 tons of material mined in that year.

A preliminary estimate of the value of the plant and quarry, based on data readily available and with only a limited inspection of the property, indicates a value of the property of $15 million, based on capitalized profit in 1949. Should the Millwood Reservoir be placed in operation without the works proposed to protect the quarry and plant, the property would be rendered inoperative and the value of the damage would be the value of the cement plant and quarry.

In addition, this cement plant provides a major part of the traffic for the Graysonia, Nashville & Ashdown Railroad, and the closing of the plant would cause major damage to the railroad which would probably require its abandonment. The protective measures necessary for the railroad are discussed later in this statement.

Plans for the Millwood Reservoir include the construction of a levee approximately 8,400 feet in length, with top elevation of 296, beginning west of the existing quarry and tying to high ground at the eastern limits of the cement company property. This levee would protect all the residential, administrative and productive parts of the plant as well as all of that part of the quarry presently being worked. The natural ground elevation at the base of the levee would be from elevation 265 to 270. The estimated cost of the levee includes provision for pumping of seepage and surface water in the amount of approximately 35,000 gallons per minute.

The estimated cost of the Millwood project approved in 1953 includes $1,093,000 for construction of the levee under the component "levees." Of this amount, direct costs are $982,600.

In addition to the Okay property, the Ideal Cement ('0., owns about 3,880 acres of land in Little River and Sevier Counties, including the site of a former cement plant and chalk quarry, located at Whitecliffs about 712 miles west of Okay. The former cement plant has been dismantled and all buildings removed. The quarry floor is at about elevation 300. The shipping point for the former operation was the Whitecliffs station on the Graysonia, Nashville & Ashdown Railroad about one-half mile south of the quarry site. The effect of the Millwood Reservoir on this site would be largely confined to the disruption of shipping facilities for any future operations of the site as the crossing of the Saline and Little River Valleys by the railroad would be inundated by the reservoir.

Of the Whitecliffs property 1,865 acres are below elevation 265; 423 acres are between elevations 265 and 295; and 1,590 acres are above elevation 295. Acquisition of appropriate real-estate interest in the undeveloped Whitecliffs property

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