in savings to the Federal Government on account of these items of an amount equal to approximately $600,000 annually. Breakdowns are frequent, entailing serious delays in the movement of traffic. As noted above, these facilities, as in the case of all of the existing locks and dams on the Ohio, are not adapted to accommodate long, modern tows, which must be separated for lockage. Thirty-five percent of the total traffic time required in moving cargoes along the reach of the river served by locks 27 through 30, a distance of 60 miles, is consumed in locking. Of this 35 percent, approximately one-fourth represents time lost in waiting for passage through the locks. With the new facilities almost all such traffic delays would be eliminated, and locking time for modern transportation equipment would be reduced approximately 80 percent.

This stretch of the river is one of the busiest on the entire inland waterway system.. In 1952 the total tonnage moved through locks 27 to 30 was 141⁄2 million tons. It included 28 million barrels of crude oil and petroleum products originating or terminating in this area. This represents more than 30 percent of all the petroleum traffic on the Ohio River. In the same year 51⁄2 million tons of coal originated or terminated in this area, amounting to 20 percent of the total Ohio River coal tonnage.

The Corps of Engineers has estimated that the new facilities will produce benefits from reduction in transportation, operating and maintenance costs of approximately $3 million annually, as compared with maintenance and operating costs and amortization and interests charges of $21⁄2 million annually for the new facilities, giving rise to a benefit-cost ratio of 1.12. This estimate was based upon 1950 tonnages moving through the Greenup pool area with a so-called assured growth factor of 200 million ton-miles. In 1952 this growth factor had already been exceeded. Again applying a growth factor of 3 percent a year, the present volume of traffic through the proposed Greenup pool will have more than doubled by the anticipated midlife of the facilities in 1986, giving rise to a benefit-cost ratio of at least 2.24. This is, of course, a most conservative estimate when it is recalled that over the past 25 years the volume of traffic on the Ohio River in ton-miles increased sevenfold despite the inadequacy of existing facilities. Major industrial expansion already in progress in the area which would be served by the Greenup facilities will unquestionably accelerate this development.

Induced by the prospect of low-cost water transportation, important new industrial installations are planned for the area. These include chemical plants, manufacturing facilities, and major additions to petroleum refining capacity. Investments aggregating hundreds of millions of dollars are anticipated which would provide new outlets for the natural resources of the area, particularly coal, helping greatly to relieve the depressed conditions in that industry, and would provide employment for thousands. Thus, the project would give tremendous impetus to the industrialization of the Ohio Valley and would contribute immeasurably to its prosperity and growth. Moreover, there is already a serious unemployment problem in eastern Kentucky and West Virginia as a result of the grave plight of the coal industry. Over the past 3 years these areas have suffered substantial losses in population. Commencement of construction of the Greenup project would stimulate employment in this region.

It is of particular significance in this regard that the Greenup project would extend navigation approximately 13 miles to lock No. 2 on the Big Sandy River. It would eliminate the necessity of providing a structure to replace obsolete lock and dam No. 1 near the mouth of the Big Sandy and would do for that stream essentially what the Gallipolis Dam did for the Kanawha. Thus, an incidental benefit would be derived from completion of the Greenup project providing important new industrial and terminal sites in this area.

The estimated cost of the Greenup project is $64,980,000, of which $370,800 has been made available to date for planning.

MARKLAND LOCKS AND DAM

This project, planned for construction on the Ohio River near Markland, Ind., 531.5 miles below Pittsburgh, calls for the construction of a nonnavigable gated dam with a normal lift of 35 feet between pools. The locks will consist of two parallel chambers of the same size as those contemplated for the New Cumberland and Greenup project. The pool will extend 97 miles upstream to existing lock and dam No. 34. This project would replace existing locks and dams Nos. 35, 36, 37, 38, and 39 on the Ohio River. If, as planned, the Markland project is completed in 1962, the structures to be replaced will range in age from 37 to 51

years. As in the case of the facilities to be replaced by New Cumberland and Greenup, these locks and dams have long since been outmoded by improvements in river equipment and the unexpectedly rapid growth in the volume of traffic attendant upon industrialization of the Ohio Valley. The Markland project will eliminate four lockages for the heavy volume of traffic moving through this reach of the river, which includes the important metropolitan Cincinnati Harbor area. In 1952 the volume of traffic handled by each of locks 35 and 36 (above Cincinnati) to be replaced by Markland was approximately 141⁄2 million tons, while the volume through each of locks 37, 38, and 39 (below Cincinnati) ranged from 9.2 million to 9.9 million tons.

The savings to the Federal Government in costs of operation, maintenance, and dredging alone from the Markland project are estimated by the Corps of Engineers at in excess of $700,000 annually. The corps has estimated the benefit-cost ratio of the project at 1.3. As in the case of the corresponding estimates for Greenup and New Cumberland, this is based upon 1950 tonnages adjusted by an "assumerd growth" factor which has already been surpassed. Again estimating on the basis of a 3 percent annual increase in gross national product, traffic through the Markland pool area will have more than doubled by the anticipated midlife of the project in 1987, and the benefit-cost ratio would be at least 2.6. The previous rate of growth in Ohio River traffic of 28 percent per annum over the past 25 years with inadequate facilities and the enormous industrial expansion and economic development going forward in the Ohio Valley justify far more optimistic estimates of the benefits to be derived from this project.

The estimated cost of the Markland proiect is $77,112,000, of which $379,300 has been made available to date for planning.

The association's recommendations as to appropriations for navigation projects on the main stream of the Ohio are designed to reconcile the most urgent needs with budgetary economy. Accordingly, it is recommended that appropriations aggregating $5.824.000 be made to permit commencement of construction of the New Cumberland, Greenup, and Markland projects in fiscal 1955. This amount should be distributed as follows:

1. New Cumberland, $1,500,000.

2. Greenup, $3,050,000, of which $50,000 (provided for in the President's budget) is needed to complete planning of the locks.

3. Markland, $1,274,000, of which $274,000 is needed to complete planning of the locks.

The urgency for starting construction on all 3 of these projects promptly and simultaneously is underscored when it is realized that 5 years is required to construct each lock and dam. If it should be determined, however, that the entire amount cannot be made available in fiscal 1955, it is most strongly urged that at least New Cumberland and Greenup be commenced in that year. As an absolute minimum, construction of New Cumberland, which, because of its emergency character, has the highest priority, must be started in fiscal 1955.

Graph showing Ohio River tonnage during 1952 and growth figures for period 1915 through 1952, prepared by the Corps of Engineers, is attached.

GENERAL STATEMENT

Mr. HULL. I am here as chairman of the legislative committee of the Ohio Valley Improvement Association which has since 1895 represented industries and people in the Ohio River Valley and has dedicated its efforts to the conservation and development of the streams that drain this important region.

The Ohio River Basin includes portions of 14 States and supports a population of 20 million people. Low-cost water transportation has always been a key factor in its huge and diversified economic development. Canalization of the Ohio, begun before 1900, was justified on the basis of an estimated traffic of 13 million tons a year. By 1929, when the original canalization project was completed, 22 million tons of freight were being moved annually. At the present time, tonnage moved on the Ohio is at the rate of about 64 million tons a year, which is about double the tonnage moved through the Panama Canal.

The traffic on the Ohio River in coal, oil, steel, chemicals, and general freight now in excess of 10 billion tons a year has increased sevenfold since 1929 when the present system of locks and dams was completed. The existing locks and dams are inadequate for the needs of present-day water transportation and many of them are in an advanced state of deterioration. The condition is so serious that future growth in the valley will be impaired unless the program for replacement of these antiquated structures is promptly resumed.

No improvements have been made on the Ohio River for more than 15 years. The vast atomic energy installations and their supporting industries now being completed in the Ohio Valley demand an uninterrupted flow of raw materials moved by low-cost water transportation.

I was just informed that yesterday there were 13 tows tied up at a traffic jam at lock 29, which is part of the Greenup Pool area if and when the dam is built. National security dictates that Ohio River navigation facilities which contributed so much to the victory in World War II be prepared to handle the additional traffic burdens which atomic war would impose upon this vitally important link in the Nation's transportation system in the industrial heart of America. The United States Army engineers' long-term program to replace obsolete locks and dams would reduce the number of locks and dams from 46 to 21. Each new structure will more than quadruple the transportation capacity of the section of the river which it serves and eliminates 75 percent of the Government's maintenance and operating costs presently required for facilities serving the same stretch of the river.

REDUCTION IN TRANSPORTATION COSTS

River transportation costs of bulk commodities will be reduced by up to 50 percent in the stretch served by each new dam.

I might point out that according to the best estimates we can obtain, when the whole program is completed Pittsburgh and Cairo at the extremes of the 981-mile stretch of the river will be brought as close together from the point of view of cost of transportation of bulk commodities as if they were 25 miles apart by rail or truck.

It is conservatively estimated that direct returns to the American people will be more than double the total costs incurred. Our association's current recommendations for resumption of the program for navigation improvements on the main stream of the Ohio are designed to reconcile the most urgent needs with reduced Federal budgets. Accordingly, we recommend that appropriations aggregating $5,824,000 be made to permit starting construction during 1955 on three projects of the greatest urgency.

This is with respect to the main stream of the Ohio. First is the New Cumberland locks and dams near Strattonville, Ohio, which would replace three obsolete structures now in imminent danger of collapse, imperiling steel operation in the Pittsburgh district. The amount required is $1,500,000.

GREENUP LOCKS AND DAMS

Second, the Greenup locks and dams near Greenup, Ky., which would replace 4 obsolete structures on the Ohio and 1 on the Big Sandy. These overage structures are causing serious traffic delays on a reach of the

river, including the highly industrialized Ironton-Ashland-Huntington district where 30 percent of the petroleum traffic and 20 percent of the coal tonnage on the Ohio originates or terminates.

Greenup would also be a public works project of major importance, relieving unemployment conditions which are now becoming very serious in eastern Kentucky and West Virginia. That area has lost population during each of the past 3 years. There is a surplus of labor in the area, presenting a very grave problem.

The amount required for the start of construction of Greenup is $3,050,000, of which $50,000 is needed to complete planning of the locks.

MARKLAND LOCKS AND DAM

Third, the Markland locks and dam near Markland, Ind., which would replace 5 outmoded structures and relieve serious traffic congestion in the great metropolitan Cincinnati area where the tonnage transported is as great as in the Greenup pool area.

The amount needed there is $1,274,000, of which $274,000 is required to complete planning of the locks. The urgency for starting construction on all 3 of these projects promptly and simultaneously is underscored when it is realized that 5 years is required to construct each lock and dam. If it should be determined, however, that the entire amount cannot be made available in fiscal 1955, it is most strongly urged that at least New Cumberland and Greenup be commenced in that year. Markland might be deferred if absolutely necessary because the planning is somewhat less advanced than in the case of Greenup and New Cumberland.

As an absolute minimum, we recommend that the construction of New Cumberland start, because of its emergency character.

I would like also to comment briefly on our recommendations with respect to navigation projects on tributaries of the Ohio and very briefly on certain flood control projects.

NAVIGATION PROJECTS

The President's budget wisely proposes that funds be made available to continue construction of the navigation projects already in progress on the tributaries of the Ohio. These include the Cheatham lock and dam on the Cumberland River, the initial step in providing modern navigation facilities on that important stream, and the Old Hickory lock and dam, also on the Cumberland, which would extend modern navigation to Carthage, Tenn. The amount provided for in the President's budget for continued construction of these projects should be retained.

Construction of locks and dams Nos. 1 and 2 of the Green River, in Kentucky, can be commenced this year if funds are provided as proposed in the supplemental budget for 1954 and the 1955 budget. This project would provide an outlet for a tremendous outbound coal tonnage and would result in large savings to the Atomic Energy Commission and the TVA in coal transportation costs. This association fully supports the President's recommendations for $800,000 in fiscal 1954 and $5,400,000 in fiscal 1955.

PROJECT PLANNING

Planning of projects for future construction must go forward. Orderly development requires it and it is essential that plans for sound public works projects be in readiness when required for implementing full employment policy. It is the opinion of the association that the amount provided for planning in the President's budget should be retained for the Hildebrand dock and dam, on the Monongahela River, W. Va., and Carthage Dam, on the Cumberland River, Tenn.

In addition, it is urged that planning funds in the amount of $50,000 be provided for dam No. 8, Monongahela River, Pa. and W. Va., which is needed in order to obtain full benefit from the system of navigation structures authorized for improvement of the upper Monongahela.

The association is in full accord with the objectives of the flood control program for the Ohio Valley proposed by the United States Army engineers. In view of the limited funds which will be available, however, it is believed that emphasis should be placed at this time on projects already under construction or for which planning is complete. These include flood protection projects now under way at Covington, Maysville, and Pineville, Ky.; and Vincennes, Ind.; and the Dillon Reservoir near Zanesville, Ohio; and the Sutton Reservoir on the Elk River in West Virginia, both of which are important units in coordinated reservoir systems for flood control.

FLOOD PROTECTION PROJECTS

Construction should be initiated on a number of projects for which planning is complete. These include flood-protection projects for Barbourville, Ky.; Johnsonburg, Pa.; Roseville, Ohio; and WheelingBenwood, W. Va.; and the Rough River Reservoir and Channel, Ky., which will be an initial step in the development of flood control in the Green River Basin.

The association also urges that adequate planning funds be made available for sound flood-control projects.

I thank you very kindly for this opportunity to present the association's views.

Senator DwORSHAK. We have a telegram from the national secretary-treasurer of the Propeller Club of the United States in support of your position, which will be inserted.

(The telegram referred to follows:)

Senator WILLIAM F. KNOWLAND,

NEW YORK, N. Y., February 16, 1954.

Chairman, Army Civil Functions Subcommittee of the Senate Appropriations Committee, Senate Office Building, Washington, D. C.:

The Propeller Club of the United States, with over 13,000 members in 40 of the 48 States, has always acted to aid worthy and economically justifiable river, inland waterway, and harbor improvements. We are convinced that the proposed new Cumberland, Greenup, and Markland locks and dams are essential to the economic welfare of Ohio Valley industries and the needs of present-day water transportation. The Propeller Club of the United States unequivocally endorses the recommendations of our local ports in Pittsburgh, Huntington, Cincinnati, Louisville, and Paducah and the testimony of the Ohio Valley Improvement Association to the end that sufficient appropriations be authorized to begin construction on these three vital projects. JAMES J. LYONS, Jr.,

National Secretary-Treasurer, The Propeller Club of the United States.