Senator ELLENDER. Why were you not able to spend that money? Why was the request made here last year? We appropriated $1,700,000. Why should you have as much as $656,000 unexpended? Colonel STARBIRD. We have a situation there, sir, where there are certain relocations that we planned to accomplish in 1954. Delays in the relocation interfered with construction of the actual structure which we intended to start during fiscal year 1954, but at an earlier date than now possible. Negotiations have taken longer than was expected. They are now cleared and we can go ahead with the relocations and with the letting of the contracts for the dam. Senator ELLENDER. Will these changes of relocation in anywise increase the cost? Colonel STARBIRD. We pay, on reservoir projects, for relocations, relocations to get structures out of the reservoirs and off the actual site. These are relocations that were considered as necessary in the original project, and are necessary, in this case partially to get out of the way of construction. Senator ELLENDER. This is the San Antonio Reservoir in California. Colonel STARBIRD. Yes, sir. Senator ELLENDER. How much was your request? BUDGET REQUEST Colonel STARBIRD. The budget request in this case was $2,500,000' all within ceiling. We had no overceiling amount recommended. Senator ELLENDER. And again you got what you requested? Colonel STARBIRD. We did, sir. Senator ELLENDER. The Bureau of the Budget made it available to you? Colonel STARBIRD. Yes, sir. Senator ELLENDER. Without any ifs or ands? Colonel STARBIRD. They approved the full amount of $2,500,000. Senator ELLENDER. Good; I am glad of it. General CHORPENING. I think the Senator asked a question there that might not have been fully answered. There is no increase in total estimated cost between this year and last year on this project. Senator YOUNG. This project is nearing completion then? Colonel STARBIRD. It is due to be completed with the appropriation in fiscal 1956. Senator YOUNG. How about remaining relocations? Colonel STARBIRD. There will be some relocations remaining. Funds for 1956 will be used primarily, though, on the completion of the dam itself. Construction will be started in the fiscal year 1954, carried through 1955, and through a part of 1956. Senator YOUNG. The project will be in operation then? Colonel STARBIRD. The project will go into operation in the fiscal year 1956; that is right. General CHORPENING. It is scheduled for completion in December 1955, sir. Colonel STARBIRD. Yes, sir. Senator ELLENDER. $2,500,000 was asked for? Colonel STARBIRD. That is correct. Senator YOUNG. Are there any further questions? WHITTIER NARROWS RESERVOIR, CALIF. 1 Reflect borrow of $706,000 in January 1954 and a contemplated additional borrow of $1,000,000 from this project through June 30, 1954. ESTIMATED COST Colonel STARBIRD. The next project is a dam and reservoir project, one that is really an integral part of the Los Angeles County drainage project. The Whittier Narrows project has an estimated cost at present and this differs from the figures reported on our justification sheets of $34,880,100. Since the justification sheets were prepared we have realized certain savings on this project which we believe can be adopted for the project and therefore we have reduced the total estimated cost. The amount appropriated to date is $27,867,100 or 77 percent of the total cost. That includes an appropriation in the fiscal year 1954 of $5,200,000. BUDGET RECOMMENDATION The amount recommended in the budget for fiscal year 1955 is $3,500,000. That is a modification over the original amount. The original amount was $5 million instead of $3,500,000. The project had unexpended as of the end of the fiscal year 1953, $3,392,000; as of December 31, 1953, we had unexpended $6,202,000; and as of the end of the fiscal year we will have unexpended a figure in the neighborhood of $320,000, but the amount of $1,706,000 to be loaned to other projects during the current year will be due for repayment to this project at the beginning of fiscal year 1955. However, that $1,706,000 is due in large part-in fact, to the extent of $1,500,000, to the expected savings that I mentioned earlier. And, in requesting funds for 1955, we have adjusted the amount downward to take account of the repayment of those funds early in that fiscal year. Senator ELLENDER. I do not quite understand how you could obtain this carryover of $1,700,000 by merely reducing the estimated cost? Colonel STARBIRD. That needs explanation, sir. Senator ELLENDER. I am sure it does, because I just cannot quite follow it. Colonel STARBIRD. The savings were realized during this current. year. Senator ELLENDER. From funds that you had appropriated? 42592-54-16 Colonel STARBIRD. From funds we had appropriated for this fiscal year, plus carryover funds. We let a contract on gates out there, sir, and on that contract, the cost was about $700,000 less than we had expected. That is a savings in hand that we already have realized. Senator ELLENDER. Why such a discrepancy? How did that come about? Colonel STARBIRD. It probably came about through several causes. We do not know the exact cause. One cause probably is that a good contractor wanted that work. It might be that our estimate was a little bit high, originally. However, it was an estimate that was thoroughly worked out. We naturally have differences between the estimated cost and actual bids. There are many factors that affect the bid. Senator ELLENDER. Was that $700,000 saved? Colonel STARBIRD. That is right, sir. Senator ELLENDER. A savings? Colonel STARBIRD. That is right. Senator ELLENDER. Did that result from a bid by the man who actually got the contract, or someone else? Colonel STARBIRD. It resulted, as far as we are concerned, from a bid by the man who got it. He may have subcontracted and gotten a further bid from someone else, but this particular man bid to furnish the gates and to install the gates. TOTAL COST Senator ELLENDER. All right. Now, what was the overall cost of that particular contract? Colonel STARBIRD. As I remember that contract including Government costs was in the neighborhood of $1,900,000, estimated, and the saving cut it down into the neighborhood of $1,200,000, sir. Senator ELLENDER. Was that done voluntarily on the part of the contractor? General CHORPENING. On the bids taken. Senator ELLENDER. How is that? General CHORPENING. On the bids taken. We advertised for bids for this work. Senator ELLENDER. I see. General CHORPENING. In the bidding, his bid, which was the low and responsible bid, was that much lower than we had originally estimated for that piece of work. So, that resulted in an overall saving. Senator ELLENDER. I get it. In other words, the contract was actually for less? General CHORPENING. For a lesser amount. Senator ELLENDER. That is what I wanted to get clear in the record. Senator ELLENDER. Now, this saving was because of the fact that you got a lower bid and it resulted in the carryover. Colonel STARBIRD. Yes, sir. Senator ELLENDER. You said that you were able to reduce your suggested appropriations for 1955 from $5 million to what? Colonel STARBIRD. From $5 million to $3,500,000. I have not completed the explanation, sir. The gates were one saving. Senator ELLENDER. I understand. Colonel STARBIRD. In addition to that, due to the negotiations that we have been conducting in connection with certain relocations, we believe we can realize other savings of $800,000 there. Senator ELLENDER. Which would take up the amount that you have taken off the $5 million? Colonel STARBIRD. That is correct, sir. Senator ELLENDER. All right. How much did the Budget Bureau allow you? BUDGET ALLOWANCE Colonel STARBIRD. The budget allowed us originally $5 million, sir. Senator ELLENDER. Yes. Colonel STARBIRD. And reduced it on our recommendation when we called their attention to later developments, and the necessity for other projects to receive certain money. They reduced it by $1,500,000. Senator ELLENDER. But in any event you received all you asked for? Colonel STARBIRD. That is correct. Senator ELLENDER. Thank you. Colonel STARBIRD. All we asked for, within ceiling. Senator ELLENDER. I understand; I understand that. Senator YOUNG. Was there not some controversy out there with respect to this Whittier Narrows project? I was out at Long Beach this fall and there was quite a controversy, I believe, over this project. General CHORPENING. No controversy at this time, that I know of over this project. In the earlier days when consideration was being given to the authorization of this project, there was quite an argument, but I know of none on this now, sir. Senator YOUNG. Off of the record, please. (Discussion off the record.) Senator ELLENDER. Would you mind putting some of that on the record? SHORE EROSION General CHORPENING. There has been on the west coast several locations where there has been considerable damage to the coast and to the shores because of eroding by wave action. Senator YOUNG. That is what I have reference to. General CHORPENING. And damage to buildings and improvements. Senator YOUNG. What difficulties as to local needs exist along the shores? General CHORPENING. I do not know that there is any division of opinion, sir. We have had quite a number of requests for assistance if we could give it or suggestions as to what to do. We have been responsive to those generally. Any funds at our disposal are not applicable under the law to emergency measures on the shores of the -ocean. Senator YOUNG. Are there any further questions? ANACOSTIA RIVER BASIN ESTIMATED COST Colonel STARBIRD. The next project is the Anacostia River project. It is one for which we have had no appropriations to date. It is a project primarily for flood control, but secondarily for improvement of navigation on approximately 5 miles of the Anacostia River above the present head of navigation. The project basically is one of providing levees and an improved channel along the lower reaches. of two of the major tributaries of the Anacostia and an improved channel and levees along the Anacostia River itself. The project has an estimated cost of $8,311,100. The appropriation to date has been entirely for planning, totaling $278,000. The amount recommended for fiscal year 1955 in the budget is $1 million. This will permit the initiation of work on the so-called Northeast Branch, also certain railroad relocation connected therewith. The project has a benefit cost ratio of 1.84 to 1. The area which will be benefited includes seven moderate-size residential and small-business cities on the Washington, D. C.-Maryland border. Senator YOUNG. How much have you requested in this budget? Colonel STARBIRD. The amount in the budget is $1 million, sir. BUDGET REQUEST Senator YOUNG. What was the amount of your request? Colonel STARBIRD. $1 million. Senator ELLENDER. Had you requested a million? Colonel STARBIRD. We requested a million overceiling. Senator ELLENDER. But within ceiling you did not ask for a nickel? Colonel STARBIRD. Sir, all new starts were carried separately and carried as a part of overceiling request. Senator ELLENDER. However, in this particular case your request of $1 million was only for overceiling, nothing for underceiling? General CHORPENING. That was true on all new starts. Senator ELLENDER. And the Bureau of the Budget saw fit to give you the million dollars. I am not complaining about that because I was for this project last year. I believe, Senator Young and Senator Hayden, we considered that project and we put into the bill I think one-half million dollars, if I remember, but the House conferees asked that it be thrown out. Here again the Bureau of the Budget saw fit to give a million dollars to a project that you did not say was within ceiling, but I am just wondering how that was done. General CHORPENING. That was in connection, Senator, with the policy adopted by the budget, which I described yesterday somewhat, of including some new starts in the budget as presented this year. Senator ELLENDER. You mean your 5 or 6 or 7 criteria? General CHORPENING. Yes. Senator YOUNG. The estimated cost of this project has gone up? Colonel STARBIRD. It has gone up. It has gone up from $7,553,000 as estimated last year to $8,311,100 as estimated this year. A part of that is a price level increase. However, a modification has been made in the project in connection with drawing up the final design. That modification was the extension of a levee to cover a relatively recently |