facilities of the Leslie Terminal Co. under a contractual arrangement between the port and the Terminal Co. for the handling of commodities other than salt. One of the vessels involved was a C-3 type vessel owned by Luckenbach Steamship Co. which was under charter to the States Marine Lines. In proceeding up the entrance channel, one of the masts of the vessel struck and broke two high tension wires of the Pacific Gas & Electric Co. which crossed the channel. The wires had a clearance above water of 125 feet m. h. h. w., which means 125 feet above the water at plus 8-foot tide. The wires were replaced tentatively by the Electric Co. and when, at a subsequent date, the company applied to the Army engineers for a permit to place permanent wires at an elevation of 125 feet m. h. h. w., a protest was filed by the Pacific American Steamship Association, who contended that the clearance was insufficient. They later approved a clearance of 135 feet m. h. h. w. (see Exhibit No. 1). This action of the Pacific American Steamship Association is evidence that they expect to be sending vessels of their member lines to the port of Redwood City, regardless of any testimony which might be presented in an effort to confuse the members of committees as to the undesirability of adding new ports. The port of Redwood City has already become established as one of the important deepwater ports of the San Francisco Bay District. Steamship operators in foreign trade routes-both American flag and foreign flag-have expressed to representatives of the port and to shippers their willingness to have their vessels call at the port of Redwood City as soon as the channel has been deepened and widened and the turning basin enlarged. Vessels operating in common carrier service must be in a position to have their vessels enter and leave the port at any time during the day or night. This they cannot do at the present time.

The two shipments of magnesite mentioned above are expected to be only the forerunner of a large movement to Europe, the Orient and to the Atlantic coast following improvements to the channel.

The port of Redwood City is now the home port for three vessels owned and operated by the Permanente Cement Co. and the Kaiser Gypsum Co.

During the past several years, a great many new industries and manufacturing plants have been located in the port's tributary territory and the population in the area has been increasing at an enormous rate. This will result, following improvements to the channel and establishment of steamship service on regular schedule, in a large amount of raw materials, manufactured goods, food stuffs, etc., moving into and out of the port. This tonnage was not taken into account by the Army engineers in computing their benefit-cost ratio. As an example of new industries being recently located in the port's tributary territory, it might be well to mention the Ford Motor Co. plant which is now being constructed at a location only a few miles distant from the port of Redwood City. The investment involved in this plant is in the neighborhood of between $40 million to $50 million. Many, many other large plants and industries could be cited but such procedure would only burden the committee with what would appear to be entirely unwarranted and unnecessary.

4. Importance of the port to national defense

(a) The port was used extensively during World War II by the Navy and for the handling of lend-lease goods. The improvement project for which item is now in the budget was approved by the Secretary of the Navy.

(b) Commodities now handled in large volume-cement, salt, gypsum rock and petroleum products-used in Government projects or by industries making products for the Government.

5. Additional expense to vessel operators and shippers

Due to the necessity of having to wait for favorable tides, weather conditions and daylight hours in the movement of vessels into and out of the port, a great deal of expense is encountered by vessel operators and shippers. Bulk cement which moves out of the port in shipload lots and used extensively in Government projects in the Pacific Northwest and the Hawaiian Islands is sold cheaper to the Government than cement which has to be transported in sacks. With improved channel conditions, resulting in lower costs to the Permanente Cement Co. which ships out of the port, most of the cement produced in its Permanente plant (one of the world's largest cement plants), it will be possible for the company to sell its product at lower rates to the Government.

6. Dangerous condition existing at the present time

Four major oil companies-Standard of California, Union Oil Co. of California, Shell Oil Co. and Richfield Oil Co.-maintain facilities at the port for the receipt

of gasoline in bulk by water and distribution of same from storage tanks to tank trucks. During 1953, 477,099 tons of gasoline was discharged from 334 barges through pipelines into storage tanks. This represents a movement of practically one barge load of gasoline per day. On many of the days, several loads of gasoline are in the harbor at the same time. With the narrowness of the channel as it exists at the present time and the large number of other craft-oceangoing vessels and barges-now using the waterway, to say nothing of the additional craft expected to be added from year to year, the use of the waterway and port facilities by all craft becomes very hazardous.

7. Impossibility of efficient port operation under existing conditions

Under existing conditions of the channel and turning basin, it is absolutely impossible to operate the port efficiently. At the municipal facilities there are berths available for 3 oceangoing vessels and 1 barge and at Leslie Terminal, where the port has a contract covering the handling of all commodities except salt, there is berthing space for 1 oceangoing vessel. In all there is sufficient berthing space at the port to accommodate four oceangoing vessels and one barge at one time. In addition, there is berthing space at the Ideal Cement Co., just below the municipal facilities, to accommodate several barges at one time.

When a vessel is at municipal berth No. 1, it is almost impossible for vessels scheduled for berths 2 and 3 to make the turn in the turning basin and back into their respective berths. If a vessel is at municipal berth 2 or 3, it is not possible for a vessel going to or from Leslie Terminal to pass. If such a vessel is to be enabled to proceed to or from such berth, it is necessary that a vessel in berth 2 or 3 be shifted. If vessels happen to be in municipal berths 1, 2, and 3, and a vessel desires to proceed to or from Leslie Terminal or it is desired to berth a barge with bulk gasoline at municipal berth 4, it is not possible to make effective such operations. Some of the vessels or barges just have to wait until other vessels vacate their berths and clear the channel (see exhibit No. 2). 8. Supporting resolutions and communications

Due to the limited time available for the preparation of communications and other evidences of support of the necessity of carrying out the work involved in the Redwood City Harbor improvement projects previously approved by Congress, work to be performed through funds made available by passage of the currently budgeted item for Redwood City Harbor, it has not been possible to bring to the attention of congressional committees any semblance of the supporting evidence that could be secured if ample time were available. However, a number of supporting communications have become available and copies of some of them are attached to this report.

In the matter of local cooperation, the municipal authorities will provide spoil-disposal areas as required and set forth in House Document No. 94, 79th Congress, 1st session.

On behalf of the Board of Port Commissioners of the City of Redwood City and all of the many interests who are vitally concerned in the approval by your committee and subsequently by Congress of the budgeted item of $1 million for immediate improvements to Redwood City Harbor, I wish to again express my appreciation for this opportunity to appear before you. The work to be performed through funds to be made available by approval of the item in question is of an emergency nature and to delay the work further would only result in undue hardship and great financial loss to the entire South San Francisco Bay area interests, many of whom have made large investments in and around the harbor on the strength of approval by Congress of the projects for which the requested funds are to be used.

The Board of Port Commissioners of the Port of Redwood City sincerely requests and urges your approval of the item in question in its entirety. Respectfully submitted.

BOARD OF PORT COMMISSIONERS OF THE PORT OF REDWOOD CITY, By M. D. MCCARL, Port Manager.

BUDGET REVISION

Mr. McCARL. I know that my allotted time is short so that I have submitted the prepared statement with the exhibits.

As the item in the budget was recommended by the Army engineers who no doubt have already testified or will testify before your com

mittee, and the recommendation of the engineers for inclusion of the item in the budget was endorsed by your chairman, together with the fact that an item of $1 million for Redwood City Harbor was also in the budget of the last administration for fiscal year 1954 but was deleted in the revised budget of the new administration under the strict economy program, and as testimony before your committee was presented by me and others last year in an unsuccessful effort to have the item restored, I feel that the members of the committee are already quite conversant with the situation pertaining to Redwood City Harbor.

However, there are a few items in the prepared statement that I should like to call your specific attention to which are as follows:

In addition to the endorsements of the Army engineers and your chairman, the item in question has been endorsed by Senator Kuchel, Congressman Younger, and Congressman Gubser.

The improvement project for Redwood City Harbor ties the endorsement of the Secretary of the Navy as being essential to national defense and the State of California, which says that the project is economically feasible and justified.

RESOLUTIONS

Resolutions requesting and strongly urging congressional representatives from California to do everything possible to bring about the approval of the Committee on Appropriations of the Senate and the House and subsequently by Congress have been adopted by the following:

The City Council of the City of Redwood; the board of supervisors of San Mateo County; the San Mateo County Development Association; the bay area council representing nine counties surrounding San Francisco Bay.

Communications have also been forwarded to congressional representatives and members of the California State senate and legislature the principal chambers of commerce in the Santa Clara Valley and along the San Francisco Peninsula; chairmen of the Republican and Democratic Parties of the Ninth Congressional District of California, users of the port facilities, shipper organizations, including the California Prune & Apricot Growers Association, steamship companies and other organizations.

The statement points out that the present activity alone, without taking into account the greatly added activity which is said to follow the improvements to the entrance channel and the channel crossing San Bruno Shoals, is sufficient to fully justify the appropriation now in the budget.

COMMERCE

In 1952 there were 3,892 watercraft using the waterway with 2,763,438 tons of cargo handled, and in 1953 there were 3,704 watercraft loading and discharging 2,553,234 tons of cargo.

According to the figures prepared by the Army engineers, in 1952, the port of Redwood City handled 77 percent as much outbound ocean commerce as the port of San Francisco did, and 117 percent as much

as the San Joaquin River port of Stockton did, on which a large amount of Federal funds have been expended.

Regardless of what any steamship company or organization or competitive port interest might say, shippers and representatives of the port have been assured that vessels not now calling at the port will call when channel conditions have been improved.

The existing channel and turning basin are hazardous, even dangerous, with a large amount of bulk gasoline being handled along with other commodities in large volume. The vessels are constantly delayed due to the necessity of waiting for tide and daylight hours, with greatly added expense to vessel operators. National defense is jeopardized due to the possibility of vessels carrying full cargoes of cement used in Government projects in the Hawaiian Islands and the Pacific Northwest, including Alaska, and salt and gypsum rock, both of which are used largely in the manufacture of national-defense projects, becoming fouled in the channel, blocking the same; use of the port and its facilities being greatly curtailed to a great disadvantage and expense to shippers in the area; and efficient operation of the port, which is capable of berthing and working for large oceangoing vessels and several voyages at one time is made absolutely impossible due to inability of vessels to pass in the channel and for vessels going to or from inner berths being able to pass those outer berths.

LOCAL COOPERATION

In the matter of local cooperation, the port authority will provide suitable spoil-disposal areas as required and set forth in House Document No. 94, 79th Congress, 1st session, which is the only local requirement.

Gentlemen, I hope that the information submitted, both orally, and in writing, will be sufficient to satisfy you that the requested appropriation for Redwood City Harbor, now in the budget, is fully justified and that you will recommend its approval by the Senate and subsequently by Congress for the full amount. I thank you. Representative YOUNGER. Thank you, Senator. Senator YOUNG. Senator Cooper.

MAYSVILLE, KY., FLOOD-CONTROL PROJECT

STATEMENT OF HON. JOHN SHERMAN COOPER, A UNITED STATES SENATOR FROM THE STATE OF KENTUCKY

Senator COOPER. I have come here in regard to the Maysville floodcontrol project. I have an appointment at 12:30 that I must make. Would it be possible for me to testify later in the afternoon? Senator YOUNG. We can take your testimony now.

Senator COOPER. I would like to make a short statement.

I know that Senator Clements and Congressman Spence would have priority so I will ask Congressman Spence of Kentucky to make his statement at this time.

STATEMENT OF HON. BRENT SPENCE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF KENTUCKY

ESTIMATED COST

Representative SPENCE. Maysville, Ky., is located in the fifth district of Kentucky, which I represent.

This is the continuation of the appropriation for the construction of flood-protective works. The estimated cost of this improvement was $6,646,000. There has been appropriated $4,319,000.

At the commencement of this year, there was an unexpended balance of $605,000. The Army engineers have asked for $1 million to continue the appropriation and that amount is in the budget. The city has obligated itself for $530,000 for its part of the cost of the construction, for the furnishing of the lands, easements, and rights-of-way. The citizens have voted this bond issue. It is a direct obligation of the city. They have realized the money and it is there available for the acquisition of these rights.

I am confident the appropriations will be made that are necessary to carry on that construction. The Ohio River is more unpredictable than the weather in Washington and floods may come in at any time. An uncompleted wall furnishes no protection. The people live in constant fear of the floods which have devastated the town time and time again. It is very necessary that this construction be expeditiously completed in order that the city may obtain the protection that it so greatly needs.

I have a short statement that I would like to file here, Mr. Chairman. Senator YOUNG. It will be filed.

(The statement referred to follows:)

STATEMENT OF CONGRESSMAN BRENT SPENCE

The total estimated cost of the flood-protective works at Maysville, Ky., is $6,646,000. To date $4,319,800 has been appropriated, and it is expected that at the end of the current fiscal year the unexpended balance will be $605,000. The city has obligated itself to the extent of $530,000 for the purchase of lands, easements and rights-of-way which will be necessary for the construction of the flood wall. The Army engineers have requested $1 million for the fiscal year 1955.

Delay on this project may result in devastation by flood and irreparable loss to the people. Incompleted work will furnish no protection to the city. The expeditious construction of the flood wall is absolutely essential for this protection and will allay the fears of the people that are now constantly present of the disaster that results from recurring floods.

I earnestly ask the committee to authorize the appropriation of the amount of $1 million as contained in the budget for 1955 and requested by the Army engineers

Senator YOUNG. Senator Cooper, did you wish to make a statement now?

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